Another disclaimer. I am no financial expert. I barely know how to fold my laundry properly, let alone advise you what to do with your hard earned money. All I can do is share with you my personal experience and what has/has not worked for me so far.
So, there seems to be two main ways people are making money from crypto. The first way to make money from crypto is by trading coins. Similar to those old 90’s movies where you see a lot of guys in ties on Wall Street yelling at numbers on a wall going up and down, you now have the ability to jump in on the high anxiety adventure. A coin is worth $1. You buy it. The value goes up to $2. You sell it. You just made a profit. These prices fluctuate based on news, rumors, hype, or sometimes just to hurt your feelings.
I must say, this is how I started with crypto, and it utterly consumed me. To make money in day trading you must be alert, consistent, and able to control your emotions. Even with all these qualities, it’s not uncommon to lose money, so do this at your own risk. I made a rule of only putting 10% of my net worth into the game (it’s very much a game), so I slept a little better at night. While it is up to you to choose your own level of risk tolerance, this 10% rule of thumb is a pretty common one from a lot of smarter people in the industry than me.
The second way to make money is a little more boring, but in my opinion, less risky: Holding On for Dear Life, or as the cool kids say it HODL’ing. With this strategy, you simply buy a coin, and hope over time, the value of the coin goes up. Similar to bitcoin, there are new coins being created every day. Any coin that is not Bitcoin has been given the name “Altcoin”. This simply implies it is an alternative coin. Warning: It is so easy to make a coin these days that MOST of these (more than 90%) will never be worth anything and have no real value. That being said, there are some coins with some really useful technology behind them that you could capitalize on.
Side note, I give some in depth analysis on which coins have potential and the technology behind them. Visit www.altcoinatlas.com/coins if you want to check that out.
In my current investing process, I HODL. I simply believe in the industry as a whole more than my ability to play the game of trading. It’s also a lot less stressful. I hope you take this insight and come up with your own style of investing. In the next section we will cover where exactly you go to buy and trade these crypto coins.