The author reflects on their own experience of investing in cryptocurrency and making significant profits. They emphasize the importance of a strong foundation in constructing a profitable crypto portfolio, focusing on specific sectors of crypto that they understand well. The author suggests being cautious of influencers and conducting thorough research, highlighting the risks associated with blindly following recommendations. They also emphasize the need for secure storage of crypto assets using a hardware wallet. Lastly, they discuss the importance of having a stable income and creating a budget for investing. The author draws inspiration from successful investors like Ashton Kutcher.
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The Keys to Profitable Crypto Investing: 5 Things to Do
Investment Success: My Journey in Crypto
This was me six years ago. Despite what the most seasoned investors in the world would say, I’m doing the exact opposite and withdrawing what little money I’d put in an investment account to buy crypto. Now, lucky for me, many of the top investors in the world were wrong. And since then, I’ve been able to profit almost a quarter of a million dollars, and in the process do things that I never thought were possible.
The Changing Landscape of Crypto
But the landscape to crypto is much different than when I first started. If you were just to jump in and start buying crypto, It would most likely end up in a disaster. But there’s five key things I would do if I was starting over. And I can’t promise you that these five things will make you a million dollars because that would be a lie. But what I can guarantee is that it’ll make you Light years ahead of where I was when I first started crypto investing over six years ago. And to up the stakes, if you can guess which one of these out of the five has made me the most money in the comments below, I’ll give a prize to some of the correct winners.
Building a Strong Foundation: Selecting Cryptos for Your Portfolio
To explain, the first thing I would do, I need to introduce to you this house. And when designing the house, we can make a mansion or a tiny home. We can give it a fancy roof or give it a bunch of windows. But no matter what type of house you design, It all needs a strong foundation. And building a profitable crypto portfolio is no different. So the first thing we need to decide is what are going to be the cryptos that make up the foundation of our portfolio. And there are so many types of cryptos out there. There’s gaming, exchanges, layer ones, layer twos, and the list goes on and on. But as the old saying goes, “The man who tries to catch two rabbits ends up catching none.” This translates to, it’s better to understand a few sectors of crypto very well than a dozen sectors of crypto At surface level insight. And the first area of my crypto portfolio that I went really deep on when I first started was supply chain ’cause that’s what I knew a lot about. And at the time, there were about a dozen or so supply chain cryptos, but I only invested in one Because of what they were doing. And it just so happened that that $2,000 investment ended up going up to around $100,000. But alongside of picking what cryptos you want to invest in, it’s also important to decide what percentage you want to invest in each one. If you invest too much Into one particular crypto and for whatever reason something happens to that project, your entire portfolio is going to be a risk. Which is why I don’t like to invest more than 20% of my entire portfolio into one crypto, and I’m actually closer to 10% in most of my positions.
Identifying and Avoiding Shady Projects
So having a well constructed house with proper infrastructure doesn’t mean that we’re in the clear. There is a massive problem in the crypto space that I wasn’t aware of when I started. And to see this problem, an old story illustrates this very well. And that story is, “Jack and the Beanstalk”. If you are familiar, the story goes like this, Jack sells his family’s only cow for some magic beans. And in Jack’s case, it ends up working out because these beans lead him to a lifetime of treasures. Unfortunately, this isn’t how it plays out in real life. Similar to the wild promises Of the magic beans, people where projects will come along and say that they’re doing the next big thing, that they are different. But in reality, they’re just trying to sell you the current day version of the magic beans. Which is why, if I were to start over, I would stop listening to these types of people, whether they’re the owners of the projects themselves or people who talk about them on Twitter and YouTube. And yes, that includes me. Now, I know that may sound a bit counterintuitive, but hear me out. When it comes to making money on YouTube, It can be a great place to find new investments or just different ways to make money. I’ve made my fair share of money by learning from others. However, on that same side of the token, I’ve also lost my fair share as well. And that’s because there are three key flaws in the space. The first is the most malicious. It’s that there’s no real way to see who was paid to do a video on a certain project. Investment in finance companies realize the level of trust that someone who makes videos has with their audience. And some creators misuse this trust for their own monetary gain By promoting these pump and dump schemes to their audience. And over time, these people do get weeded out. It’s the reason why every crypto bull run, you’ll see new people making videos on crypto. But it doesn’t mean that there won’t be casualties along the way. The second is the people Talking about the projects don’t truly understand the fundamentals or just bad research. Someone could be accidentally weeding their listeners to a downfall because of one little thing they may have missed in research. And even though this isn’t malicious, it still holds the same outcome. And the third problem with YouTube Primarily in the finance space is the inability to understand the circumstances of everyone who watches the video. In some sectors of YouTube it may not have a negative outcome by someone watching an instructional video. However, the finance space is not the same. For example, if I have a million dollars to invest And I spend $10,000 in this very high risk small project, but then someone sees that and then they invest their life savings of $10,000 into that same project, you can see how that can be a problem. My takeaway is this. I still think YouTube and Twitter can be a great place For research and learning, but that’s it. It ends there. Something that I personally got burned on in my early days in crypto was not understanding and questioning these projects that people were talking about to the extent they needed to be. And understanding that, the higher reward place also have higher risk.
Securing Your Investments: Storing Crypto Offline
The third thing you need to understand before investing in crypto can be explained by this key right here. Let’s say, Jim buys $5,000 worth of crypto and he is storing it in his crypto portfolio house. And at the end of the bull run, it’s worth over $150,000. Now if Dwight asked for the key, Jim wouldn’t give Dwight the keys to that house. So if we wouldn’t do it with our house, then why are we doing it with our crypto? How many times have you bought crypto and then you just leave it on the exchange for weeks, months, Maybe even longer? I know I have, and luckily I didn’t get my crypto stolen. However, there are quite a few people who did if they left them on any of these exchanges listed right here. But luckily, this is an easy fix. And to counter this, all you have to do is Store your crypto offline with a hard wallet. And I use the ledger. However, there are a lot of different ones that you can use, and they’re all very affordable.
Investing with Income: Creating an Investment Budget
The fourth thing you need to do can be seen by looking at Hollywood actor Ashton Kutcher. Despite playing characters that weren’t very bright Early on in his career, he actually ended up investing in companies like Uber, Airbnb, Robinhood, and even Bitcoin very early on. That has made him a net worth of over nine figures. And I think we can take a page out of his playbook along with other successful investors. And that’s the importance of having income and creating an investment budget around that. Ashton Kucher didn’t start investing until he had other…
