Cryptocurrency might be the best chance our generation has at financial freedom. This is how to get there.
Research Everything
The first thing you need to do is market research. There’s no clear-cut way to do this. But you can start with white papers of large projects, Reddit, blog posts from dev teams, etc.
I would also pay attention to price history. There are patterns if you look hard enough.
But most importantly, you need to simply understand the risk here. There are no guarantees. This is the wild west of finance and tech.
The entire market could go up 100% next week. Or the entire thing could crash. Nobody really knows. Everyone’s just figuring it out as we go along.
One solid project
Throughout your research, you’re gonna find many different projects that promise amazing returns. Don’t fall victim to these shiny traps.
You only need one. Look, unless you’re planning on being the warren Buffett of Crypto, you can do just fine with a single project.
And if you’ve done good research, the project is going to be one that will stick around for a long time.
That’s the important thing. Will this project continue to exist during a bear market? The truth is, most projects disappear after the market crash.
And as long as your crypto continues to exist, it will see these crazy spikes and dips in price.
If you’d like to learn the three things a good crypto project needs, check out this article.
But once you’ve done your research, it’s time to start taking action.
Your Initial Investment
You need to have a good sized initial investment. I recommend creating an entirely new savings account, and putting a few dollars in every month when you can.
It won’t feel like much at first, but you can get to a good amount saved up in no time.
You want to have between $5k and $20k.
Anything smaller than this and you probably won’t make enough later on. But this number is totally up to you. Whatever you are capable of risking, use your best judgment.
For most people, this is a realistic amount of money to save. Not that it will be easy, but it will be possible.
Buy the Bottom
As of writing this article, cryptocurrency is booming. Prices continue to rise, and everyone is euphoric.
But this too shall pass.
There will be another crash. I can’t tell you when or how bad it will be. But it’s coming.
Some people see a crypto crash as a tragedy. It’s going to be your opportunity for financial freedom.
This is when you’re going to go all in. You’re going to buy the bottom.
Not the exact bottom. It’s impossible to know how low it will go. You shouldn’t stress about that. But if the project is down 95%, you can rest assured that you’re close enough.
In the long run, it won’t matter if you buy it and it goes down another 10% or 20%. It won’t make a difference during the next bull run.
Stand Firm and HODL
This is going to be the hardest part right here. You need to hold a large percentage of your net worth in an asset that’s going down or sideways.
The most important thing you need to do is fight your emotions. Don’t panic sell if it goes down another 5%. Remember the plan!
In fact, it might be a good idea to stop checking the numbers on a regular basis. Limit yourself to checking the price once a week.
That will do wonders for your mental health.