If you’re looking to make quick and easy money, then investing in cryptocurrency could be the perfect way to do it. Ever heard of the Winklevoss twins? They’re world-famous Bitcoin billionaires, after being early adopters of now globally recognised cryptocurrency, Bitcoin. If you like the sound of that (and who wouldn’t?), then we’ve put together the top 5 tips to help you invest in crypto and ultimately, make as much money as possible from your investment.
Top tip 1: Work out how much you can afford to invest
This might sound like a simple tip but it’s surprising how many people have no idea how much they need to make an initial investment in cryptocurrency, regardless of which one they choose to invest in. For example, if you only buy one Bitcoin, it’s unlikely that you’re going to make millions of dollars. But if you can afford to buy 10 or more, you have a much higher chance of making a huge profit than can really make a difference in your life.
The important thing to remember when investing is to only ever use your own money, and only ever invest how much you can afford to lose. Although the crypto market is far less volatile than the other financial markets, it can still go up and down, regardless of financial forecasts.
Top tip 2: Choose the right place to Buy your Cryptocurrency
The popularity in crypto has exploded over the past five years and because of that, there has been more and more platforms that allow you to buy it. The most popular, eToro, is one of the most trusted and reputable platforms on the market for buying cryptocurrency, especially Bitcoin. However, we advise that you do your research on each of the different exchanges, so you can find the best deal that suits the type of investment that you’re looking to make.
Top tip 3: Use a Third-Party auto Trading Platform
If you’ve never invested before, or you’re relatively inexperienced when it comes to investing, then we’d heavily advise using a third-party auto trading platform that essentially does all of the investing for you. For example, if you sign up (normally, these platforms are free to sign up to), all you need to do is deposit the minimum requirement of funds, set up your investment parameters (risk levels etc), and click “live trade session”. The platforms then use intelligent bots in the background, essentially working as a real-life “broker”, to find the best deals at the best times for you, making it easier and quicker for you to make money fast.
Top tip 4: Keep up to Date with what’s Happening in the Cryptocurrency Market
If you have funds tied up in the cryptocurrency market, like your investment, it’s advisable that you keep a close eye on what’s going on. Ideally, you’ll want to know if the financial experts are predicting a crash, or if they’re expecting a surge in Bitcoin buyers, for example. This way, you’ll know when the best time is to sell, or buy more cryptocurrency to maximise your profit.
Top tip 5: Be Active on the Market
If you invest in cryptocurrency, say Bitcoin, then almost forget about it, it’s unlikely that you’re going to be making the mega bucks that you initially hoped for. Although it’s a passive income on the side of your day job, it’s definitely advisable to be as active as you can in your free time. If you opt to use a third party platform for your investment, then do a live trading session once a day. This way, you’ll far more likely to make money than if you wait for the market to continuously change in value.