Whether you are new to cryptocurrencies or not, many options are available for investment. The cryptocurrency market is admittedly young. However, it’s growing. Are you looking to invest in this exciting market and have the chance at some seriously big returns? You have come to the right place. Here are five steps for growing your personal wealth with cryptocurrency:
Set up a monthly investment plan and stick to it
The first step to building wealth is setting up a budget and sticking to it. This is something that you have to do every single month—no exceptions! It is a fundamental part of achieving your investment goals.
To ensure that your investments are successful, you must set aside monthly funds for them. Your monthly funds can go as allowed as only $50. Afterward, try increasing that amount over time so you can eventually invest more than $50 per month. However, even if all you can afford right now is $5 per week or $10 per month, it’s better than nothing at all.
After figuring out how much money will go into your monthly investment plan (and how much of that money will go towards cryptocurrency), make sure that these numbers don’t change from month to month or year to year.
You don’t want natural disasters or unexpected expenses knocking holes in your savings account. Therefore, ensure you know how much money will go into those accounts before opening them.
Choose between a crypto exchange or wallet operator
The second step is choosing a crypto exchange or wallet operator. The main thing to remember when choosing one is that the more exchanges you use, the more money you will make. Choose at least two exchanges. Moreover, consider using more if you want to maximize your profits.
You can choose from many types of exchanges, such as decentralized exchanges, centralized exchanges, and decentralized exchanges that centralized companies run. Some people believe that decentralized exchanges are better than centralized ones. This is because they offer lower fees and faster trades. However, these benefits also come with drawbacks.
The choice between decentralized and centralized exchanges depends on your needs. Suppose you want to be able to trade with fiat currencies like USD or EURO. In that case, it is best to use a centralized exchange like Coinbase or Binance.
Most BTC investment sites, according to TradingBrowser, have this feature built into their platform, while most decentralized platforms do not support these currencies yet (though they might come in the future).
Focus on the top 20 coins by market cap
After deciding to invest in crypto, it is time to figure out which coins will make you the most money.
The cryptocurrency market is constantly changing. There are new coins available in the market. Moreover, other coins are going out of style. You need to be aware of these changes to invest in the right cryptocurrencies at the right time.
The best way to do this is by looking at the top 20 cryptocurrencies by market cap. These coins have the most widespread adoption and have a consensus of value among investors.
After selecting your top 20 coins, it’s time to look at their charts and see their performance over time. This will give you an idea of each coin’s volatility and whether that volatility will likely increase or decrease in the future.
Finally, after gaining confidence in your selection of coins, it’s time to buy some. However, before you go ahead and buy whatever coin catches your fancy, check its price history against another coin with similar properties. This is just in case some recent fluctuation might affect its value compared with other similar coins.
Track your portfolio
When looking to build your personal wealth with cryptocurrency, the last step is to track your portfolio. This will allow you to keep an eye on what’s going on with your investments and help you stay on track if things get rocky.
After understanding how much money you have invested in different coins and their current value, it’s time to start moving forward. The next step is determining where you want your investment money.
Do you want to invest in Bitcoin? Ethereum? Or something else entirely? If so, ensure that you pay attention to the market trends and developments surrounding those specific cryptocurrencies. This way, when something happens—like an exchange hack or regulatory changes—you will know exactly how it affects your portfolio.
After getting a good idea of which coins are worth investing in and why (and how), it is time to decide where they should be traded, whether it is an exchange like Coinbase or Kraken, an over-the-counter (OTC) dealer, or even directly from another person who has mined one themselves. Once again: all of these options have their pros and cons. Hence, do some research before deciding which one works best for you.
Aim for the long-term
Building long-term wealth in crypto needs a long-term outlook on investment. This means that you should be willing to put in the effort and make sacrifices to enjoy the fruits of your labor later. That is why we recommend setting up a savings account and making regular deposits into it every month. You will be amazed at how quickly those little deposits add up.
Don’t have savings yet? No worries! We understand that it’s difficult to set aside money when just starting. However, starting somewhere is important. Therefore, try putting aside a small amount from each paycheck until you reach your goal. You’ll be surprised at how quickly this adds up.
It is also important not to spend all your money on frivolous things like food or rent. That way, when an emergency arises (as it inevitably will), some cash will still be left over for emergencies.
We suggest keeping a minimum amount in the bank so that if something happens unexpectedly (like an illness), you can cover expenses without worrying about whether they’ll get paid on time (or at all).