5 steps to get yourself Crypto-Educated
Sep 27, 2021
So you've seen it coming up all over your instagram, you hear people talking about how they bought Bitcoin and you've probably seen the Dogecoin meme...but are you left feeling completely overwhelmed...
Well...how about this - I've done all the research for you and it all boils down to 5 steps to get yourself Crypto-Eductated.
Remember the scariest step is starting and by reading this, you have already taken a teeny tiny step.
DISCLAIMER...THIS IS NOT FINANCIAL ADVICE. Everything below is based on my own journey into crypto. Any type of investing is not a quick fix...expecting to invest and make big bucks in a hurry - without understanding - is not recommended...
Well...how about this - I've done all the research for you and it all boils down to 5 steps to get yourself Crypto-Eductated.
Remember the scariest step is starting and by reading this, you have already taken a teeny tiny step.
DISCLAIMER...THIS IS NOT FINANCIAL ADVICE. Everything below is based on my own journey into crypto. Any type of investing is not a quick fix...expecting to invest and make big bucks in a hurry - without understanding - is not recommended...
Here are my top 4 things to consider when starting your crypto journey:
1. How much you can afford to put in?
Have you done your numbers? Have you got a solid idea about how much you cash you are willing to put in?
Investing isn't the same as saving, as there is a risk you could lose all you put in. That's a real risk and one to be taken seriously.
When considering your investment, decide how much spare capital you have that you're willing to invest and accept that there is a chance you may lose this. Long and the short - only put in as much as you're willing to lose. Sounds brutal? This mentality will protect you from heartbreak and making emotion driven decisions as the market dips and peaks.
Have you done your numbers? Have you got a solid idea about how much you cash you are willing to put in?
Investing isn't the same as saving, as there is a risk you could lose all you put in. That's a real risk and one to be taken seriously.
When considering your investment, decide how much spare capital you have that you're willing to invest and accept that there is a chance you may lose this. Long and the short - only put in as much as you're willing to lose. Sounds brutal? This mentality will protect you from heartbreak and making emotion driven decisions as the market dips and peaks.
2. What is your range of risk?
Speaking about risk...how much risk are you willing to take?
Have a think about your emotional threshold when it comes to putting you money into cryptocurrency, as it is essentially like gambling. Would you prefer to have your money in super safe options only, or in high-risk-high-return ones? Or do you want a mix of both?
Speaking about risk...how much risk are you willing to take?
Have a think about your emotional threshold when it comes to putting you money into cryptocurrency, as it is essentially like gambling. Would you prefer to have your money in super safe options only, or in high-risk-high-return ones? Or do you want a mix of both?
3. What is your timescale?
How long are you willing to lock your money up for? Is the purpose of investing to get you to a goal quickly (if so, you may want to reconsider, as investing is for the long game).
When you're putting money in, therefore you need to make sure it's not funds that you're going to need access to in the short term. And if it's a short term strategy you're going with, what are the fees attached to putting your money in and taking it out?
How long are you willing to lock your money up for? Is the purpose of investing to get you to a goal quickly (if so, you may want to reconsider, as investing is for the long game).
When you're putting money in, therefore you need to make sure it's not funds that you're going to need access to in the short term. And if it's a short term strategy you're going with, what are the fees attached to putting your money in and taking it out?
4. How much time are you willing to put into investing - DCA (Dollar Cost Averaging)?
DCA is a well-established strategy, which requires you to put funds into your investments at regular intervals. You will therefore need to decide if you're going to invest in lump sums, or if you're going to spread your deposits regularly.
Your investment style will depend on how much time and energy you want to put into creating a system that works for you and maintaining it.
Now you have the numbers sorted...there's one big elephant still in the room. What do you need to know to get started with cryptocurrency?
It's a big world of knowledge and you don't need to know everything before you get started. The old Chinese proverb goes:
When is the best time to plant a tree - 10 years ago. When is the second best time? Now.
Similarly it doesn't matter how long you've waited to get going...I promise you it's not too late. So that brings us to my last tip and it's a big one, but see it as an investment in future you, rather than a mountain too high to climb.
If you forget everything else you've read here, this is the one thing I hope you take away:
DCA is a well-established strategy, which requires you to put funds into your investments at regular intervals. You will therefore need to decide if you're going to invest in lump sums, or if you're going to spread your deposits regularly.
Your investment style will depend on how much time and energy you want to put into creating a system that works for you and maintaining it.
Now you have the numbers sorted...there's one big elephant still in the room. What do you need to know to get started with cryptocurrency?
It's a big world of knowledge and you don't need to know everything before you get started. The old Chinese proverb goes:
When is the best time to plant a tree - 10 years ago. When is the second best time? Now.
Similarly it doesn't matter how long you've waited to get going...I promise you it's not too late. So that brings us to my last tip and it's a big one, but see it as an investment in future you, rather than a mountain too high to climb.
If you forget everything else you've read here, this is the one thing I hope you take away:
GET EDUCATED!
1. Understand the basics of cryptocurrency - take your time to learn. You don't need to be an expert but you shouldn't put your money into something you don't understand.
Find out the answers to these questions:
Find out the answers to these questions:
- What is cryptocurrency?
- What is decentralisation?
- What are inflationary assets?
- What is scarcity of supply?
- What are the macroeconomics going on in the world?
- Why is the dollar getting weaker and weaker?
- What is money printing?
2. Learn to use the tools
There are so many platforms out there, but here are a few I've personally used and enjoyed: Binance, Coinly, Market Cap, Trading View.
3. Understand the misconceptions
The world is evolving and cryptocurrency is becoming the next evolution of money and exchange as we know it. We are bound to come across sceptics and people who are resistant to change. Knowing how to refute the myths and misconceptions about this digital currency is going to further your own understanding.
The world is evolving and cryptocurrency is becoming the next evolution of money and exchange as we know it. We are bound to come across sceptics and people who are resistant to change. Knowing how to refute the myths and misconceptions about this digital currency is going to further your own understanding.
If someone says to you that Bitcoin consumes a lot of energy and is bad for the environment, what do you know to make sure you're equipped with the right knowledge so this doesn't scare you off of your investment journey?
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