Disclaimer: I'm writing this to my friends who have no idea what a blockchain is so don't give me shit about how wrong the technicalities are.
So yeah, bitcoin's price is super high at the moment with $10000 for just a single BTC. You're too late. You should have bought in at $400 when it was cheap. Remember how $400 seemed so expensive though? The thing is these cryptocurrencies don't have an intrinsic value. Nobody knows what the true cost of a bitcoin is since it is not connected to any physical good or theoretical model. The cost is whatever others are willing to pay for it. Yes that means it's in a bubble. But it also means it's always going to be a bubble, but what if it doesn't stop until a single bitcoin is worth millions? Is that hard to believe?
But don't get overly exited - that leads to bad decisions. Take a deep breath and let's think this through.
The risk is losing all your money
This is not "how to get rich fast" and definitely not "no risk strategy". Your funds can be stolen by hackers, transferred out of existence or just plain old lost. There is no central authority that can help you if you screw up, so it's best to ask someone who's done it first.
Do not put money into this that you can't afford to lose! No loans. No gambling. Don't be stupid.
The potential to make money is huge, yet it's also balanced by the risk.
Normal peoples strategy for investing in cryptocurrencies
- Put 10% of yout income into the scene each month. This will mean you don't miss out, yet can't really pick a bad time to buy. Pick any top coin and just leave it hanging. Best if you forget you have any at all. Just don't lose your access key!
- When choosing a coin don't look at the graphs as much as what makes that coin special. Is this technology noteworthy? Is their mission something I think should exist? Investing in cryptocurrencies is actually like buying some company stocks.
- When your money doubles you are free to take 50% out. But only do so if you must! Ask yourself if your life is any better after this money has been spent. If you leave money in there will be a lot more of it in 2 years.
- Don't try to make decisions based off of the carts. There is no scientific evidence that charts behave in a specific way just because it has behaved a certain way so far.
- If you absolutely need to gamble take 10% of your recent investments and put it to another account. Do not put more money in until next month. If you lost the 10% you can easily lose the rest of it. Also winning doesn't mean you'll survive when the crash comes. And it will come.
- If you're looking for a steady income then look into node supported coins like master nodes or service nodes (also sometimes called system nodes). They actually produce cashflow.
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