The author discusses his experience of growing up with little money and trying various side hustles and investments to become wealthy. He shares his ultimate guide for aspiring investors, which is divided into three parts: coins, short-term and long-term time frames, and other categories. He provides tips for choosing the best coins, including buying top coins on red days and taking profits when they increase three to five times in value. He also stresses the importance of having a long-term mindset when investing and researching before blindly copying influencers’ investment advice. Lastly, he advises against using borrowed money for investments.
The Ultimate Guide for Getting Rich as a Broke Investor
When growing up, I never had a lot of money, and to be quite honest, I’ve always been average when it comes to getting rich with my investments. I’ve tried multiple side hustles and different businesses to get there, and some stuff definitely worked, like my e-commerce business, and some stuff definitely didn’t. But now, I’m over 300k richer than my initial investments back in 2020.
You see, I truly know how hard it is to turn a small amount of money into a large chunk. So, in this article, I want to share everything that worked for me. This is my ultimate guide for getting rich as a broke investor.
Coins are Crucial
Okay, so let’s start with the most important coins. When we’re broke and starting out, we must know what coins to invest in to get to that goal. Why? Well, if you choose wrong, you can literally lose it all. Choose right, and it’s a pretty simple road. But I know firsthand that when starting out, this is extremely hard, and the reason why is one, we’re addicted to fast gains, simply meaning we log onto Coin Market Cap and we see coins up hundreds of thousands of percent in a day, and we think to ourselves, we can catch the end of this and cash out for a quick profit.
And two, our mindset for short-term profits sucks. We want to get rich now. So, while it’s not easy, here are my best tips for choosing the best coins.
H2: 1. Buy on Red Days
First, buy top coins on red days, not green. For example, if you see Bitcoin down 5% on a day, this is a great time to buy. You can acquire a larger amount for less cash, simple. So what you will be tempted to do is the absolute opposite here. Most investors that lose money are buying on green days.
H2: 2. Know Where We Are in The Current Cycle
Tip number two for choosing what coins is where we are in the current cycle. This is a game-changer. You see, in a bear market, you do not want to be holding altcoins unless you have a long-term horizon and can stomach the blood block that occurs in a bear market. I really only want to hold bitcoin, possibly Ethereum, but ideally, I’m spreading small buys on the way down, preparing myself for the next bull run.
H2: 3. Take God Damn Profits
Tip number three is going to be taking god damn profit. There’s no general rule of thumb on when you should be taking profit, but if you’re up three to five x on a coin, maybe it’s about time to take some off the table instead of trying to get greedy before it goes south.
Time Frames are Essential
Now, let’s move onto short-term and long-term investments. The most common mistake I see with noobs is that they have a short-term mindset when investing. This is simply when you want to make a profit yesterday. For example, you YOLO a thousand bucks into Bitcoin on a Tuesday to then check your portfolio on the Wednesday, and you see you’re down to 990 bucks. You get frustrated, you sell, and the reason this sucks is that it restricts you to this gambler mindset.
H2: 4. Don’t Use Borrowed Money
Without a doubt, the most important part about investing is to not use borrowed money, e.g., leverage. This will save you the fear of not getting your coins sold if you make a bad move.
Other Factors to Consider
Finally, let’s talk about the last topic, “other.” We’ll start with influencers and like what you may think on Twitter and YouTube, even me, we have no idea where the price is going in the short term, so it’s absolutely vital although you can look at what we’re doing, do not blindly use your hard-earned money to copy investment advice.
H2: 5. Do Your Own Research
You should only use resources like these to pique your interest, then go and do the research yourself to see if it makes sense for you to jump in. No one really knows at the end of the day what is going to survive and what isn’t.
This is my conclusive guide to getting rich as a broke investor. Remember, take your coins seriously, be patient, take profit, and do your own research. Following these tips will help you achieve financial success even if you have limited funds to start with.