Disclaimer: This is not financial advice. I am not an expert. And you should do your own research.
The Wild West used to be the Internet. But the Internet has been domesticated. We have it under control. For the most part. But there is a new frontier to conquer. And its name is cryptocurrency.
Only in the Wild West can you make a lot of money. If society has already solved it, what do they need you for?
Every generation has an industry like this. An industry that changes the world and enriches many people. At one point, it was the California gold rush. At another time, it was the oil rush in the Midwest and Texas. Today it is a cryptocurrency.
But there will be a time in the future when the opportunity will disappear. By then, quite a few people will have figured it out. Do not lose this opportunity.
Really smart people have created projects in this industry that have turned them into billionaires. Sure, a lot of money sounds good, but you don’t need to be a rocket scientist to cover your living expenses. Hell, even a clown like me can do it.
Before we get into the specifics of cryptocurrencies, let’s start with living expenses. You should keep them as low as humanly possible.
Don’t buy things you don’t need. Save money whenever possible. And live in moderation.
I earned more than a year of salary with this last market cycle. And I have done nothing but pay debts and cover bills. If you treat cryptocurrencies like a lottery ticket to buy toys, you will end up losing.
I live in a city you’ve never heard of. In a state that most people can’t spell. Tennessee if you are curious. I don’t live like a king.
But at the end of the day, I haven’t had to work a miserable job since 2020. And that, honestly, has been a blessing. And you, my friend, can also have that blessing.
Cryptocurrency is a new technology. Bitcoin only came to light in 2009. Just over a decade of history. But it is still history. And you can study what happened in the past to predict what will happen in the future. They are not rocket science people.
You can start with an overview of the surface level. Generally, it is so. There are massive cycles where there is crazy price action. It happens when Bitcoin has a halving event, a bull run will increase the price in a year or so. And then everything falls apart. Just for it to happen again.
Bull run – crypto jargon for a period of price increases.
This is a bit simplified, but you get the idea. Study the previous bitcoin price and get a rough idea of when things will happen.
This could take a couple of days or even weeks. Generally, the more the better. Research everything you can. Knowledge is not just power. But it is the tool you can use to live a free life.
And when you have this strategy in place, stick with it. Don’t get greedy and move the goalpost. I lost a lot of money doing this.
“If Bitcoin reaches price X, I will have close to $ 20k and can pay my mortgage.”
Stick to that plan. Don’t start thinking “maybe I can take it a little longer. Maybe I can triple my original target price! ”
Greed will kill you.
Stick to your original plan.
And before someone makes the accusation, no, I don’t come from a wealthy family. I was raised by a single mother and learned about cryptocurrencies when I was a bankrupt college student.
I started buying cryptocurrencies with the money that was left over. And it wasn’t much. Typically less than $ 100 a month. Sometimes a little more, sometimes a little less.
But it is important to have on Mind when I started doing this, after the crash of 2018. While most people were panicking selling, I was putting every spare dollar into this space. And it worked better than I could imagine.
This is a strategy known as dollar cost averaging. Where you normally invest some money regardless of the price. Knowing it may increase in the future.
It was still a volatile space back then. Sometimes my investment went down 70% in a week. Other times, it would increase to 100% in just a few days.
But I kept shopping every month. I had my selling limits. And I stayed with them. And it made a difference.
When a bullfight arrives and everything begins to go to the moon, any project that is still alive practically accompanies it.
But we have to talk about how to find good projects to invest in. Because staying with bitcoin or Ethereum may not necessarily be the option for everyone.
Especially when you work with as little money as I do, you want to find projects that have more potential for improvement.
As a general rule of thumb, the smaller the project, the more potential profit there will be in the future.
That is not to say that any small project will make you rich. This industry is known for its scams. But a good little project will make you a lot more money than bitcoin will ever make.
You almost have to think of yourself as an angel investor. You are looking for one or two projects that have the potential to go up 1000%. And there are more of those than you might think.
One of the big ideas to understand is that survival is prosperity. The cryptocurrency industry can be brutal.
If a cryptocurrency project has been through a bull run and a bear market, then it has some weight behind it. It’s probably legit.
So if you can find one of these projects that you can just survive, you may have found a good investment.
But age is not necessarily a good cryptocurrency. There are three elements of a good cryptocurrency investment. If you let any of these three down, don’t put a penny on it.
Does this project really do anything? I know this may sound shocking. But many cryptocurrency projects don’t actually fix anything. They do not solve a problem. They really are just zeros and ones on the internet.
If you even think about putting money into something, you should be able to use it in some way.
Bitcoin is a store of value. Ethereum allows you to create decentralized applications. Uniswap allows you to trade cryptocurrencies without intermediaries. Any of these are safe bets.
Cryptocurrencies don’t appear out of nowhere. Real people make them. To predict the future of a cryptocurrency, look at the people who build it.
A big reason I invested in BAT was because the bloody creator of the greatest programming language is building it.
Other than bitcoin, you wouldn’t trust a cryptocurrency with an anonymous creator.
Are real people using this? If this project has any chance of survival, it will need some staunch believers in its community.
If a cryptocurrency is good enough to build a community, then it can survive just about anything that happens with its price.