Are you addicted to travel? If you love the adventure of knowing a new place and discovering different parts of who you are as you come to understand other cultures, meet new people, and have new experiences, then you know just how valuable it truly is. Some people love to travel so much that they become digital nomads so they can work while hopping from country to country; others, who work nine to five jobs, don’t spend money on going out for lunch during work breaks or getting drinks at night just so they can save up enough to go on their dream vacation to Paris or Rome.
But one of the best ways you can save money is by investing in cryptocurrency. Now that Bitcoin’s all the rage, there are bloggers everywhere writing about it, and financial experts giving out advice–which means that you’ve got all the info you need now. So if you’re looking to save money this way, read on:
Before you get a digital wallet and start buying up some cryptocurrency, you’re going to want to get educated on how cryptocurrency works, how its popularity came about, and what risks are involved in investing. Ultimately, you need to feel comfortable with the investment you’re making–and those people who became wealthy overnight because of Bitcoin? They were always reading up about it, analyzing it, and posting on blogs and Reddit talking to each other about its potential value.
If you want to read up on startups that are using blockchain technology to revolutionize everything from the US freight network to blockchain health solutions for global health problems, check out this list of the top 10 cryptocurrency blogs on the web. Considering that 112 million Americans have listened to podcasts as of 2017, you should check out forums on that platform, too.
Get a wallet
Now that you’ve got all the info you need, you’re going to get a wallet, so that you can start tracking your purchases. According to Karl McDonald of iNews, “You’re going to need a wallet to hold the proof that you own the amount of Bitcoin or any other coin, that you’ll go on to purchase. All your transactions will be digital, so they need a digital place to end up. For most purposes, you can think of your wallet as being like your blockchain bank account.” There are lots of different wallets out there, and many of them are free, so–as usual–you need to do your research before choosing which one works best for you.
According to US News, the best ones to check out, from best to worst, are: (1) paper wallet or other cold storage (“it often takes the form of a piece of paper with a QR code that can be scanned into a software wallet when you so desire,” which means you’re the only with access to the information), (2) hardware wallets/dongles such as Ledger or Trezor, (3) Electrum (a software wallet), (4) Blockchain.info (online wallet), and (5) Coinbase (online exchange). Obviously, these are all very different kinds of wallets, so once you’ve done your research, you’ll know what balance of easy use and more security you need. Just remember that you don’t want to end up in hot water; if you do, consider using a lawyer like Aaron Kelly, who specializes in modern law.
Be wary of bots
As cryptocurrency buying becomes more popular, so does the chance that you might get scammed by bots while you’re investing. After all, with everything online, and 30 percent of millennials preferring to invest $1,000 into Bitcoin instead of government bonds or stocks, scammers have a greater chance now than ever to succeed in tricking people to give them money in exchange for something they don’t want.
According to Forbes.com, to spot a bot, “You will need to carefully watch the market trading signals and learn to notice the abnormal trading patterns…The two biggest indicators of bot market manipulations are price momentum and volume. As an investor, you should carefully watch these two parameters and try to notice coordinated buy patterns early on. The alternative is to use a cryptocurrency trading analytics platform that will do ‘the watch’ for you.”
Start shopping–and be smart
Finally, once you’ve completed all these other steps, you’ll be ready to invest. With all the information you need, you’ll know what your budget is, and when you’ll be able to take risks and when you won’t (we know it’s tempting–but don’t buy up a ton until you’ve had a bit of practice). It’s a good idea to create a portfolio: in other words, buying up different kinds of cryptocurrency, so you aren’t putting all your eggs in one basket.
According to BlockGeeks, some great cryptocurrencies to start investing in now are Ethereum, Ripple, Litecoin, Dash, and Monero, considering Bitcoin’s share of the cryptocurrency market dropped from 90 percent to 40 in 2017.
As you can see, investing in cryptocurrency isn’t as complicated as it may sound–and if you’re lucky, you’ll be able to save money not only for your next trip but also for other things in your life.
What do you think is most challenging about starting to invest in cryptocurrency?