Coinbase opened the world of cryptocurrency for me and many others. They have made buying bitcoin so simple, I bet it’s even playing a role on driving up the price (currently $20k). If you haven’t invested yet, you may not be too late. When I got in, the price was around $5000 and I thought it was too late. When a lot of my friends got in it was at $7000, they thought they were too late. When my mother got in Bitcoin was at $14,000, and even she thought she was too late. Long story short, we have all made money. Now that we’ve made money, what do we do? I mean, after all cryptocurrencies are still a volatile market, and many financial professionals advise that we’re in a bubble. We’ve already taken the initial risk of believing in a new form of currency, now how to we mitigate that risk?
Traditional Stock Path
First thing I told all of my friends is, once you’ve doubled your initial investment take it out. By doing this, you cut risks by only gambling on your profits. This way if you lose, you don’t lose everything. Next, I advise putting that initial investment into something more secure like traditional stocks. Like me, many of my friends and family had never invested in stocks. Getting into the risky market of bitcoin has opened up our minds, and now we’re pretty much ready to try anything. Robin Hood is the app I use for stock trading and like Coinbase it couldn’t make buying and selling any easier.
I’ve personally invested in Apple, Facebook, and Netflix. These are companies I personally know about and have shown substantial continuous growth for the past 5 years. You might also want to look into Tesla, Starbucks, Roku, Disney, Fox, Amazon, & Google. When you’re like me and don’t know much, I think it’s important to start out with companies you are familiar with. This will help when following up with news on the companies. Knowing the future plans and past failures of a company could seriously help you when it comes to deciding on where to invest.
Cryptocurrency Super Highway
Now, once you’ve secured your initial investment, it’s time to play. Coinbase is fun but it only has 3 currencies. There is a whole world out there of cryptocurrencies, and it feels like there’s a new one every day. So how do we tap into that market? We need to use another more advanced app that has the full capabilities of trading in the crypto market. Two big names I hear over and over are Binance & Bittrex. I personally use them both, but I am a bit partial to Binance because they provide an overall better user experience in my opinion. Conversely, a lot more of the people I come across in the space use Bittrex. Some currencies may be on one and not the other, so both will come handy.
Now, this isn’t Coinbase, the use of these apps are a bit more involved. The first major barrier people come across is how to fill up their account with money. You can’t just connect your bank account and start buying. You have to transfer other cryptocurrencies you’ve obtained in order to start trading. For example, I had to go to my Coinbase bitcoin wallet and transfer some funds into the other wallets. The transfer process is relatively quick. It usually takes within an hour or so. Once the money is in your new wallet, you’re ready to start trading.
Your Investment Journey
I hope this helps you in your own investment journey. I write these articles as a way to share my own personal experience and remove some of the mystery behind everything. It’s important to remember, I’m just getting started and am in no way a financial professional. Every key point I write about should be taken as a starting point to your own research. Traditional sources, such as Investopedia, are great for learning the ropes. I wish you all the best of luck.