You’ve probably heard of Bitcoin, the world’s largest cryptocurrency by market cap and the first-ever decentralized cryptocurrency back in 2009. If you’re reading this, chances are you have at least some interest in cryptocurrencies — whether it’s their investment potential or how they might help to revolutionize payments and money transfers (which they do!).
But if you ask 100 people about cryptocurrencies, you might get over 90 different answers about what exactly cryptocurrencies are, how to get them, and why everyone should be interested in them. That’s where we come in!
How to get rich with cryptocurrency in 10 easy steps
Step 1 – Pick your cryptocurrency
There are hundreds of cryptocurrencies out there, so it’s important that you do your research on which ones have a future and which ones don’t. It’s never a good idea to invest money into something that has no future, so make sure you pick one or two coins that are likely to go up in value. Some common names right now include Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). There’s also Steemit coin and Verge as well, but they’re not as stable of choices yet.
Before investing any money into a specific currency, make sure you have a plan for what you’re going to do with it. Many people buy cryptocurrencies like Bitcoin just because they heard about them and then simply keep it hoping that its value will go up. But if you want real returns, then you’ll need to develop a plan for your investment first.
Step 2 – Buy as much as you can afford
Once you’ve decided that investing in cryptocurrencies is right for you, it’s time to buy some. If you aren’t sure where to start, check out our guide on how and where to buy bitcoin and also take a look at our page on setting up your first coin wallet.
This guide will teach you everything you need to know about buying and storing cryptocurrencies safely—including some of our favorite sites for storing your coins. From there, we recommend checking out a site like CoinMarketCap or CoinGecko (both are great resources) and seeing what they think of different cryptocurrencies—that can give you an idea of whether or not a given currency is overpriced or underpriced.
Step 3 – Wait for it to double, triple, or quadruple in value
Let’s say you buy 1 Bitcoin for $500, and leave it there. It doubles, triples, or quadruples in value. You now have $1,000 worth of cryptocurrency. Now sell it off on a crypto exchange and reap your profits.
If you want to learn more about how exactly these transactions work, check out step 5 below for more information about exchanges. You can also store your coins yourself if you prefer – see step 6 for information about hardware wallets and safe storage options. However you do it, just make sure not to spend them before they double (or triple… or quadruple).
If you want to be a successful crypto investor, wait for your coins to increase in value. It’s not as hard as it seems – most of these coins will either double or triple (or quadruple) in value within a few months, and it is up to you when you sell them off.
Step 4 – Sell at the right time
If you’re looking for expert advice on how to get rich from cryptocurrencies, you might want to talk to a financial advisor or investment professional. These professionals can help you sort through your options and make sure that you’re not sacrificing your retirement funds for short-term profits. An alternative is Reddit, where there are several active communities about investing and trading in cryptocurrencies.
While Reddit is one of my favorite sites on the Internet, I don’t know how much stock I would put into information from a specific Redditor as opposed to an experienced professional whose job is to educate people about these things.
Step 5 – Profit!
Investing is about making money, so it’s no surprise that you might want to be a little bit greedy. While there’s nothing wrong with wanting to be wealthy, if your sole purpose for investing is getting rich quick—then I hate to break it to you… it’s probably not going to happen.
Gaining wealth through investments takes a lot of time and work, plus there are plenty of surprises along the way; we call these opportunities (or risks) and they can sometimes lead you down a different path than planned. Overall, most people (who play their cards right) end up very happy with their investment results but it takes some time and effort before those results start showing up on your bank account statements.
So, if you’re looking for a get-rich-quick solution, then cryptocurrencies probably aren’t going to be your best bet. If you want to build your wealth through investing there are plenty of other options that might suit you better. Consider things like buying stocks or bonds; starting a business; buying an investment property; crowdfunding, etc. If any of these sound interesting then make sure you do your research first and play by the rules!
Step 6 – Repeat
What are you waiting for? The future is just around the corner and you can be a part of it. Well, not literally around the corner. Cryptocurrency isn’t going anywhere anytime soon and neither is blockchain technology, so if you’re interested, now is as good a time as any to learn how to invest in digital currency! But before you invest make sure that your wallet has been set up.
Then find an exchange like Coinbase (USA) or Coinjar (Australia), create an account there, and buy some bitcoin! We won’t tell anyone if you buy some other types of cryptocurrencies too. Just make sure not to spend more than what you can afford to lose. If all goes well, tomorrow could be your lucky day!
Step 7 – Get advice from professionals
One of these professionals may be a CPA. They are bound by law to not give investment advice, but they can point you in the right direction. Look for CPAs who specialize in business consulting. Some of them will do a free consultation where they just sit down and answer your questions (including tax questions).
If you’re lucky, it’ll be over coffee at Starbucks. If not, make an appointment at their office (it’s probably close enough that you could walk there if need be) and ask some basic questions on how they would handle certain things if they were running your company. If you like what you hear, make sure that you respect their time and pay them for it!
You can always try asking on online forums like Reddit, or message boards like Quora. These sites are filled with people who have done what you’re trying to do and had a lot of success doing it. They will be more than happy to share their experiences and advice!
Step 8 – Educate yourself
If you’re really serious about making money from a digital currency like Bitcoin, you should educate yourself by reading some books or other materials on how it works. It’s complicated and there are plenty of things that can go wrong if you don’t have at least a basic understanding of how it all works.
I highly recommend The Beginner’s Guide to Cryptocurrency Investing by John Carroll, as well as Cryptocurrency Investing Bible: The Ultimate Guide About Blockchain, Mining, Trading, ICO, Ethereum Platform, Exchanges, Top Cryptocurrencies for Investing and Perfect Strategies To Make Money by Michele Capriotti (Crypto Joe). But there are tons of options out there so search around and find one that makes sense for you.
Step 9 – Give back
Giving back isn’t necessarily a prerequisite for wealth creation, but it does help put things into perspective and offers an additional path towards creating your own definition of success. If you have excess funds or assets, giving back is a great way to spread some goodwill and show appreciation for others.
For instance, if you have excess money from investing or from your side business, why not offer your services pro bono? You could also ask friends or family members for help. In addition to being rewarding, there are tax incentives for charitable donations. However much you decide to give, there’s no better feeling than helping out someone else (and knowing that you’re doing good in their life) while still staying financially sound at home.
Step 10 – Donate some of your profits
Cryptocurrency is a fairly new concept, but that doesn’t mean there aren’t other people who can use it. People like you and me have been able to make money off of it while some haven’t. If you are one of those lucky few who have made millions on crypto, consider donating some of your profits to charity.
There are many people out there who could benefit from a little extra help and if you are making money off of something they could be used as well, why not share? It will make you feel good inside knowing that you were able to give back and help those less fortunate than yourself.
How to Earn BTC Click Here
How to Get rich with Cryptocurrency in 10 Easy steps
