How Much to Invest in Crypto? Crypto Investing on a Budget:
How Much to Invest in Crypto – Here’s A CRYPTO INVESTING COMPLETE 101 GUIDE For Beginners!!
– TIMESTAMPS –
0:00 Intro
1:51 Why not both?
4:37 Why do you want to buy these?
5:19 Social Engagement
7:07 Sell Pressure
10:22 Buy Pressure
13:12 Growth Potential
16:35 Conclusion
How Much to Invest in Crypto?
🤔Why not both?🤔
For starters, you might not have enough cash on hand to make diversifying your investment worth your while.
Another reason why it might be better to invest in just a few of the cryptocurrencies you’re interested in has to do with fees, specifically exchange fees and transaction fees.
The last reason you might want to consider choosing a smaller number of cryptos to invest in is for practical purposes. Keeping up with updates, news, and price action for more than a dozen cryptocurrencies can be difficult to do, and missing one of these could mean the difference between a 2x and a 10x return.
🤑Why are you buying?🤑
The first step in your triage process is to ask yourself why these cryptocurrencies are on your list, to begin with.
If you want to invest in a cryptocurrency purely because you’ve been led to believe that it will go up in value due to hype, then you can immediately scratch it off your list
👨💻Social Media Presence👨💻
There could be a cryptocurrency on your list that is objectively the best by every possible measure, but if it has no online reach or community base then it may as well not exist. The easiest way to check if the cryptocurrencies on your list have sufficient engagement is to check their Twitter followings and watchlist counts on CoinMarketCap.
For reference, most cryptocurrencies in the top 100 will have Twitter followings and CMC watchlist counts of more than 100 thousand
📉Sell Pressure📉
Broadly speaking, there are two supply sources in cryptocurrency: inflation and vesting, i.e. the unlock periods for any coins or tokens allocated to private investors or the team behind the crypto project Inflation isn’t really a problem if you’re only planning on holding a cryptocurrency for a few weeks or months. You can also sometimes offset that inflation while you wait to sell by staking that coin.
While vesting schedules come in all shapes and sizes, the main thing to look out for are any large vesting cliffs because this sudden release of tokens in such a short period of time often suppresses price.
The worst part is that many cryptocurrency projects allow their initial investors to stake their coins or tokens while they are vesting. In other words, they are earning inflationary rewards while they wait.
📈Buying Pressure📈
While there are multiple demand drivers in cryptocurrency, two of the most powerful are use case and institutional demand. Even if the cryptocurrencies you’re considering have high inflation and aggressive vesting schedules, it is very possible that the demand for some of them could be high enough to overcome that supply shock.
Ideally, the demand coming from the use case should be real, something long term, and not due to a short-term incentive of some kind If you’re lucky, some of the cryptocurrencies you’re considering might be on the radar of institutional investors
💰Growth Potential💰
As a general rule of thumb, the smaller the market cap, the more potential it will have to grow. The tradeoff here is a risk – smaller-cap altcoins will be very volatile, and there’s no guarantee they’ll pump.
If they’re trading on good exchanges but not Binance or Coinbase, there’s a possibility one of them could be listed there if they continue to see community growth and development. If you’re lucky, you’ll get a roadmap with detailed dates or at least estimates. As with listing announcements, you can expect the price to pump when the crypto news picks up on the update.
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► CRYPTO TOOLS & RESOURCES ◄
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Cryptocurrency Exchanges:
► BlockFi Exchange:
Earn up to 8.6% APY on crypto with the BlockFi Interest Account, take out fast and secure USD loans on your crypto, and buy and sell different currencies on this no-fee trading platform.
Sign up using the following link and you will earn $10 in BTC after making a min deposit of $100 into your BlockFi Interest Account (BIA).
https://blockfi.com/?ref=8196c8ae
► Changelly Exchange:
For buying or trading one cryptocurrency with another cryptocurrency:
https://changelly.com/?ref_id=nMo94rePnVfrug0R
For buying Cryptocurrency with Fiat Money using Bank Card:
https://changelly.com/buy?ref_id=nMo94rePnVfrug0R
► Kucoin Exchange:
https://www.kucoin.com/ucenter/signup?rcode=rJGK1VM
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► Trade Cryptocurrency Derivatives on Bybit Derivative Exchange:
https://partner.bybit.com/b/Crypto$
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► Automated Trading Made Easy with Coinrule:
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► Buy Hardware Wallet:
Ledger Crypto Starter Pack: https://shop.ledger.com/products/crypto-starter-pack?r=eee8629af7c5 Ledger Nano X: https://shop.ledger.com/products/ledger-nano-x?r=eee8629af7c5
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► Get Billfodl: https://bit.ly/Get-Indestructible-Billfodl
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The Billfodl is a small, wallet sized stainless steel enclosure designed to house any kind of crypto private key or recovery seed you may need to protect from physical threats of destruction. With the Billfodl, you don’t need fancy stamping sets or hammers. Instead we provide a randomized set of character tiles, laser engraved for maximum readability and ease of installation.
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► Best Crypto Tax Software (Get 10% discount):
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For more Cryptocurrency News & Tips:
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3 Big Cryptocurrency Investing Mistakes to Avoid in 2021!
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SERGEY NAZAROV of Chainlink Created BITCOIN?! Satoshi Revealed?!
Will Coinbase List These Coins? Here’s What I KNOW!
LAST CHANCE to Become a Cryptocurrency Millionaire in 2021?!
Find out How You Can Become the Next Bitcoin Era Millionaire
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