How I Doubled my Money Buying Crypto in a Month
Have you invested in crypto, or are you still skeptical about it?
What if I told you that I DOUBLED my money the first time I invested in crypto just a few weeks ago?
How to Get Started with Crypto
If you are not familiar with the Dogecoin hype, Elon Musk tweeted the word “doge” and crypto investors immediately knew he was referring to the crypto coin.
People started to notice the hype and started creating memes as they also purchased the coin. This led Dogecoin to have a drastic increase in price, making people thousands of dollars.
Because of this hype, I purchased over 7,600 Dogecoins and started looking into other coins.
However, I only invested money that I could afford to lose!
Every smart investor knows NOT to put all of their eggs in one basket, so I started creating a portfolio of different cryptos after doing extensive research on each one.
STEP 1: Find the best apps that allow you to purchase crypto AND give you wallet keys
If you live in the United States of America, you will need to download multiple apps to purchase and trade crypto because one app will have crypto that another app does not.
Also, you want to make sure that the apps you use give you wallets keys (digital storage for those who are confused) for your coins so that you can send and receive crypto with ease.
The best app that I use and love is AnchorUSD because it has all of the cryptocurrencies that I’m investing in, and they give me a high APY on my money and coins (up to 8%).
If you want another app, Crypto.com is amazing and they even give you $25 when you sign up using an affiliate link. So, here’s mine.
STEP 2: Get a ledger to safely store your cryptocurrency
If you keep your crypto in an app, you are relying on a third party to keep your crypto safe and don’t have full control over your coins.
When you use a ledger, you have full control over your crypto.
A ledger will give you two keys; a public key and a private key.
A public key (per coin) will allow you to receive money with ease.
A private key will allow you to access your wallet keys. The private key consists of A LOT of random words that you have to write down and keep safe because you will use those words to log into your account.
If you lose your private key, you will not recover your coins. That’s how safe a ledger is.
How to Find The Best Cryptocurrencies to Invest in
Knowing what to invest in and when may seem hard. But I disagree. This is only hard for those who like to buy and sell quick.
The only behavior I condone is buying and holding. Hold for as long as you can.
I hold for over a year for tax purposes (when you hold for over a year, you pay less taxes on capital gains. Read this article to learn more:
Buying Stocks/Crypto? Here’s What You Need to Know About Taxes
This was my thought process choosing my crypto:
- Coin #1: Dogecoin is a meme crypto but getting lots of exposure and backed by notorious celebrities. I invested $150 and within the first two days it turned into almost $750. Unfortunately, I invested in Dogecoin using Robinhood, which is not the way to go.
- Coin #2: Polkadot is the next Ethereum. I invested $100 and right now it is at $173.69. I purchased Polkadot using my AnchorUSD account and I earn APY on my coin every single day. Payouts are daily.
- Coin #3: I opened a crypto.com account using someone’s link which automatically gave me $25 for free. Right now that $25 is at $45.75 USD.
- Coin #4: I purchased more CRO coins (this is crypto.com’s coin!) for $100 and now those $100 turned into $167.84. I invested in CRO because a lot of investors worldwide purchase crypto using this platform, and I do not see it going away anytime soon, especially when they also have debit cards.
In total, I’ve invested $350 and have made up to $1,138.28. This amount fluctuates and sometimes looks more like $787.28 due to Dogecoin’s fluctuations and media attention.
Right now, there is a lot of “hype” around cryptocurrencies and even banks are getting involved.
Now Apple allows its users to purchase Bitcoin with Apple Pay, and many banks are getting on board with accepting crypto as a payment method.
My Best Crypto Tips
TIP 1: The best way to know what coins to invest in is to conduct extensive research on each, and that includes paying attention to what the news are releasing globally.
TIP 2: As always, only invest money that you are willing to lose, and do not throw in all of your life savings into one coin hoping for it to give you a high ROI.
TIP 3: Don’t invest in just one coin; you must diversify your portfolio.
TIP 4: Create a new email just for crypto purposes. Use this email whenever you create accounts to purchase/exchange crypto, and also to subscribe to crypto news that get delivered directly to your email.
TIP 5: Hold your investments for at least a year. You will end up paying less taxes on your capital gains that way.
TIP 6: Don’t use platforms that don’t give you a wallet key for your coins. You won’t own them.
TIP 7: Think beyond the hype. The hype almost always dies down.
If this post helped you, go ahead and SHARE IT with someone who needs to know this!
Originally published at https://elennyfrometa.com on February 18, 2021.