Sort:  
  • Trending
    • [-]
     8 years ago  

    Thank you for asking. That is actually a very broad question. For a long time I blogged about my own adventures at http://creativecurrencies.cu.cc. You would get a good idea of my journey if you just started at the beginning and worked your way through all the blog posts. Keep in mind that a lot of the specific information (websites, services, etc.) is dated and may no longer be valid. I continue to blog about it some here on Steemit, but right now my posts are more focused on Steemit itself.

    To kind of summarize, though, here are a few guiding principles that have worked for me:

    1. Even in crypto, true wealth is built up gradually over time and with some hard work, sometimes a lot of hard work. Avoid the get rich quick schemes. Even though they work for a few people, your odds of being that lucky are on par with winning the lottery.
    2. Be a student of cryptocurrencies. Read, watch videos, learn about it, engage in forums and figure out who knows stuff and learn from them. I started out on Bitcoin Talk, but since you're already on Steemit, I know there are a lot of very knowledgeable and experienced cryptoinvestors right here. You can try to find them using tags like #cryptocurrency, #bitcoin, etc.
    3. As much as possible, try to earn, rather than buy, your starter cryptos. I did a fair amount of freelance writing work for various people who paid me in all kinds of cryptocoins. I've earned Bitcoin, Devcoin, Next, Franko, Diamond, DNotes and I'm sure I'm forgetting some by doing various writing and editing jobs. If you have any skills in writing, programming, website design or videography, there are lots of people who hang out on BitcoinTalk who are developing interesting coins and other crypto applications who are willing to pay for those services. You can connect with them, and when they post asking for help, make an offer :)
    4. Be patient and be willing to buy and hold for many months, sometimes years. For example, the coin NEM got started around 2014 (I think) with people able to buy a share in the then future coin. NEM got released around a year later with some excitement but then pretty well flatlined on the exchange for another year. Now in mid-2017 that coin is starting to get some attention and is trending upwards at a noticeable rate on the exchanges, and sits at #8 on CoinMarketCap. Those who bought in early will make out extremely well if they sell everything now, but there is still much potential growth ahead. However, everyone still holding on to their original share (which cost less than $100) had to wait out a whole lot of boring not much going on for a couple years.
    5. Know how to tell the difference between good and bad ventures. This would be a topic for an entire post, but basically there are signs to look for when considering whether or not to invest in a new venture, whether it be a coin or a business. I learned this by making a lot of mistakes and I still don't get it right all the time. Patterns to pick up on are things like how many developers are involved (if it's a one man show it will probably die), how lively is the Bitcointalk forum thread (or whatever place where the developers hang out), and a few other things I can't think of right now. You start to get a sense of whether or not it's going to make it or not.
    6. Once you've narrowed down to a few good opportunities, know the patterns. From what I've observed, just about every coin that launches gets initially hyped. Then it drops. It's after that initial hype and drop that you would want to buy in. I rarely buy ICOs anymore because they mostly drop in price on the open market so you can get in cheaper by waiting.
    7. Know yourself and what works for you. A lot of people make good money day trading cryptos. That doesn't work for me. Figure out what works for you, and you'll learn by trying a few things. But just because something works well for someone else doesn't mean it will work for you so don't force it. There are lots of great ways to do well with crypto.
    8. Diversify. Don't put all your investment in one place. Even if you have to at first because of limited funds, take some profits from your original investment as soon as possible and put them somewhere else.
    9. Only invest what you can afford to lose. Along with that, know at the outset that sometimes you will lose. Treat those losses not as failures but as great opportunities to learn and make adjustments to your strategy.

    I could go on, but that should get you started :)