This wasn’t just teenagers or “digital nomad” types either. In fact, most of the conversations were between businessmen.
Guys in suits arguing over which alt coins to buy, or how to set up a mining operation in Northern China. These dudes were absolutely, 100% convinced that crypto was the ultimate goldmine.
As if it’s guaranteed to continually skyrocket in value, forever.
Two months later the market crashed.
Since the crash, cryptocurrencies have all but vanished from the public eye.
You don’t hear people talking about them in restaurants, or at airport bars. And the news doesn’t run a constant stream of BitCoin related stories either.
This has led many to wonder if cryptocurrencies are dead.
I say, “no.”
Giving up on crypto now is a lot like declaring that “the Internet is dead” in 1997. It’s pretty foolish, and a good way to sell yourself short.
In this article, I’ll explain why it’s still a good time to invest.
How To Make Money Trading Cryptocurrencies
(Bought Siacoin Where The Red Circle Is, Sold It At The Purple Circle)
[Usually I hate talking about myself (here’s a writing tip, most people hate articles contain the word “I” in them). However, this next section is based almost entirely on personal experience. So I’ll be using “I” and “me” quite a bit. Sorry about that.]
Last August cryptos “crashed.”
BitCoin fell $1,000 in a day (from its all-time high of $4,000), and I used the opportunity to start investing.
I gobbled up BitCoin, purchased a few LiteCoins at $47 each, snagged a bunch of OmiseGO coins for $8 a pop, and picked up thousands of Siacoins for less than a penny each.
For a couple hundred bucks (sans the BitCoin), I scored a lot of assets.
All of these increased by at least 200% of their initial value.
OmiseGO is $20 each, LiteCoin is over $200, and even Sia is worth two cents. Those are huge gains, and all turned a nice profit. Plus, BitCoin shot up to $11,000 by the time I sold it.
Why’s this important?
Because it illustrates an important lesson. That there are two main ways to profit off cryptocurrencies:
1. Buy BitCoin Dips
“When there’s blood in the street, invest!” That’s the famous Wall Street quote, and it exists for a reason.
Crashes and panics lead to some tremendous bargains.
Just a few weeks ago, BitCoin crashed (again) to $8,000. When it did, I bought some. Once it rose to $10,000, I sold my investment for a cool 20% profit.
With most coins, I would not suggest buying the dip (you’ll see why in just a minute). But BitCoin is the exception to this rule. It’s a “name brand” and the main crypto people know. As such, it holds value.
As such, buying during a dip is pretty low-risk. Especially if you’re doing it in small amounts.
Investing a couple hundred bucks (on CoinBase the max you’re able to do is $250 per week) is fairly safe. And you’ll get decent returns once the markets swing back around.
Case in point, a friend of mine made $800 in a month by simply buying and selling BitCoin spikes.
The next time BitCoin crashes, play the contrarian and invest.
2. Invest In Rising Alt-Coins
When you’re looking for bigger gains, gobble up inexpensive alt-coins.
There’s a lot of good stuff for under $50. And in many cases, you’ll find terrific opportunities for less than $5.
Look around at what’s avalible, then read up on any coins which look promising (Hint: check for coins being partnered with major service, or ones likely to get listed on a massive exchange like CoinBase). Then grab as many as you feel comfortable with.
Lastly, when it comes to buying alt-coins, I recommend using Changelly.com. The site lets you purchase cryptocurrencies with a debit or credit card, making it very easy to get started.
A lot of other sites force you to exchange BitCoin for alternative cryptos, and it’s a pain.
Luckily, Changelly doesn’t do this. As such, it’s a great system for investing in the coins you want without having to jump through a bunch of hoops.
Best Investing Resources
If you want to invest in crypto, then you need to do your research. Gone are the good old days (2017), when any random coin pick was sure to gain value.
On top of this, many “sure thing” investments (like Ripple) are traps.
For a brief stint, coins like Tron, Ripple, and Dao all created a huge stir as rookie investors flocked in. Then they quickly capsized, dropping in value and screwing over anyone dumb enough to buy at peak prices.
Each example ended in a classic case of “Buy high, sell low.”
(This “Normie Bait” Coin Crashed Hard)
The best way to avoid this is by preparing yourself in advance. Do your homework before purchasing any cryptocurrency, and understand how other investors think too (hint: their actions affect the market).
An easy way to do this is through reading.
Don’t join a high-priced newsletter (those are junk), but get some actual paperback books instead. They’re a hundred times cheaper and a million times more informative.
Recommended Reading:
- Animal Spirits – A friend recommend this book, and it’s fantastic. Animal Spirits explains how emotions and public reaction drive markets. While written for Wall Street, it applies to crypto too.
- Predictably Irrational – Another book on human behavior. This one examines why we do what we do. Good for understanding yourself and the subconscious motivators influencing your actions.
- Beating The Street – Written by a billion-dollar Wall Street investor (Peter Lynch), this book shows you exactly how to analyze a good deal. And, what factors make something a good investment.
- Cryptoassets – This is a book all about investing in BitCoin and other cryptocurrencies. It walks you through everything you need to know (from setting up a coin wallet to using an exchange). Plus, it covers investment and portfolio management strategies to help maximize your gains. A must-read for anyone interested in crypto.
Closing Thoughts
(Even After The “Big Crash,” BitCoin Is Still Up 780%)
Crypto coins are still worth investing in, and are continuing to turn a profit.
While investing in them is tougher than it was last year, the market’s still in its infancy with a lot of room for growth.
Do your research, seek out good opportunities, and you’ll do just fine.
P.S. You should really check out Cryptoassets and Changelly. They’re the best starting points for investing in alt-coins.