How To Invest In Crypto For Beginners [Full Guide]

so you want to get started investing you have a bit of money saved up maybe you've heard about Bitcoin a few times and you know what it sounds pretty damn interesting maybe you even read that someone made like a million bucks by investing on Dogecoin or how much money of course the people who made on bitcoin who bought 10 years ago hey fun fact for you by the way a thousand dollars invested into Bitcoin exactly 10 years ago would be worth around three hundred thousand dollars right now not too bad right but if you are

new to investing in crypto then even simple tasks like buying your first Bitcoin can really seem like a huge deal plus there will always be that little voice in the back your head that's saying well but what if I lose all my money in this video I'm going to try to answer some of these questions for you explain the basics of investing in crypto and the information that you need to know when you're getting started off as an investor this is a video that I wish I had back in 2017 when I started investing in

crypto since that time I have made millions of dollars and I also found one of the best crypto newsletters in the industry read by over 70 000 people every single week and that news are jam-packed full of money making Alpha on altcoins D5 charts air drops and much much more you can actually sign for that for free yes I said for free using the link down below now let's break down the topic of how to invest in crypto for beginners in this nice concise easy to digest steps first why invest it all well there are

many reasons that people want to invest and to invest specifically in cryptocurrency the first and obvious reason is crypto is a highly volatile but also a very high growth High return industry and let's be real people come to crypto to make big money and ideally to make it fast second people are waking up to the reality you cannot trust the system anymore to take care of you retirement is looking less and less likely for an increasing number of P people and the value of money over time it is falling often dramatically so if you hold

cash you're guaranteed to lose due to these factors you put your money in a savings account well you're still losing savings accounts they're a joke they don't even keep Pace with inflation or money debate so not even close you lose money by putting it in a savings account you need to invest to stay ahead it's almost not even a choice anymore and there are many things of course that you can invest in you can buy rare art and buy watches real estate obviously ever popular very big asset class stocks make up one of the biggest

investment classes in the world dividends from those make millionaires bonds are often considered as well yeah they're boring but they're still widely considerably super safe and then for The Adventurous investors we have Bitcoin and cryptocurrencies but at the end of the day you want to make an investment into something that you think is going to beat inflation and of course maybe even do better than that and put some nice money into your pockets and good profits and an investment of course is simply putting your money into some kind of asset that will provide a return

either from selling that asset or from dividends from that asset now the question that most people will have next is well how much do I need to get started well here's the answer to that you can actually start with any some investing crypto you don't need a million dollars you can take a million dollars if you want or you can start 100 bucks it's also cool the key here is no matter how much you are starting with is to go slow and to learn about this asset class before putting in any big sums of money

the Temptation I know I know the Temptation is so strong with crypto go all in as soon as you can but this temptation should be resisted you need to take your time and as to how much to invest in crypto as a total dollar sum really that comes down to you and of course your personal finance is the size of your portfolio as well as your risk tolerance to getting exposure to crypto and the golden rule of course to remember with crypto is never invest more than you can afford to lose because you always need

to think this keep this in the back Your Mind Investing in prep crypto if I woke up tomorrow and my wallet has been hacked will I be okay if the answer is no then you're investing too much the next thing I want to address is how often to buy and really when to buy crypto not for many investors a nice passive approach to investing is probably going to work best so you just have an auto buy for 100 bucks a Bitcoin every Friday as an example rain or shine just dollar cost averaging think for the

long term let's say that you have a bigger sum that you want to invest and you want to do it fast when should you make that big purchase when should you go all in again not super advised but you know some people are going to do that well the ideal time is when markets are low obviously when asset prices are significantly down and fear is high and everyone is saying that crypto is done for it's a scam and it's going to zero you can also of course look for oversold readings on key technical indicators such

as the RSI to try and help find good entries conversely you do not want to buy at new all-time highs when prices have just pumped by hundreds or sometimes thousands of a percent that's a dangerous time to buy when greed is high is a time of danger when everyone's feeling like I'm a genius seeing people posting a picture of the Rolexes and the new cars danger signs warning signs and the media is talking about crypto as the new paradigm of money it's the worst time to buy it's the highest risk time and the lowest reward

potential time so be warned of that reality because unfortunately that is when most people are going to want to buy into the cryptocurrency markets now let's talk about how much of your total portfolio should go into crypto again everyone needs to answer this for themselves I can't say three percent that's the number ten percent that's the number but Studies have shown that just one percent of your total portfolio in just Bitcoin can actually see you dramatically outperform these 60 40 stock Bond portfolios so you can do 59 40 and one percent Bitcoin for example some

investors obviously much Bolder younger investors that want to make it big they go 100 crypto is seen by many as the best way to create wealth quickly personally I like to diversify profits out of crypto into things like stocks and metals and the thing to keep in mind with crypto is that it is risky it is volatile and putting too much money into crypto and you're actually going to be exposing yourself to bigger risks zero exposure on the flip side could see you underperform massively versus those who own it also one other important consideration to

come in here is to understand well what actually is crypto because a lot of people actually mess this one up there are many different kinds of crypto out there but it boils down to this crypto is Magic internet money they're not physical assets like art or a house right these are intangible assets can't touch them as well crypto assets don't give you ownership over the protocols so these are not stocks right owning a stock is a certain legal rights this is not that this is a crypto asset you have no rights and the way that

crypto assets are treated in tax something to keep in mind here often varies very much from how those traditi additional assets are treated but one thing to never forget is that the tax man is going to want to be paid now look different crypto can fulfill different functions Bitcoin for example to monetary device transacted on the world's most secure computer network we have similar networks such as Litecoin Dogecoin Monero these are transactional payment currencies primarily ethereum it's like a promotionless super computer operating system that has both a native token that operates as money and is

used to access the network and pay gas fees which is eth and it's also a network that allows thousands of tokens to be built on top of it similar networks to ethereum Solana Matic and cardano dozens of others as well and then we have tokens these are more like startup companies built on top of blockchains levels of decentralization vary but basically a token launched on top of a network like ethereum in which in theory has some sort of use case within a platform somewhere the best ones of course will have strong use cases the range

of tokens is big from meme coins which are literally just pictures with a token like a dog or a frog meme they have no use case they're generally junk although they can pump like crazy then you have things like GMX which provides real yield from platform fees back to Holders so they make money and they pass it on to token holders we have tokens that have burning mechanisms built in like maker Dow's mkr token or a token which is needed to pay for some kind of network operation or services within a platform or ecosystem such

as chain links link token now all of these tokens depend of course on hype users successful teams successful Partners successful Integrations all that stuff in order to be successful make you money now let's talk about the big question what should I buy well let's break this down into a few different categories first we have to talk about Bitcoin is there a Zone category it's the OG crypto obviously it's the most widely adopted it's the most recognized crypto in the world basically Bitcoin though is just digital gold it fulfills that kind of function it's probably the

simplest way to understand it if you're a cash casual investor you just want to dabble take a little little taste to crypto get that extra exposure then you can just buy Bitcoin keep it simple that's it super easy Bitcoin leads the crypto markets anyway and it's widely considered as safe as well cryptos and while the returns may not be as big the risk is also smaller just don't go expecting some kind of you know million x gains from Bitcoin because that's not going to happen it is already the 10th biggest asset on the planet gold

number one by the way so while I think BTC is a great investment which is why personally it is my number one holding in my portfolio I also understand that the Returns on bitcoin they're just not going to be that insane moving forward now let's talk about ethereum this is the number two cryptocurrency in the world some people say it should be number one it's a whole different conversation I suppose of buying and owning ethereum will give you exposure to basically everything that is built on top of ethereum because it is a value sync for

all of those different protocols and tokens and whatever else is built on top of ethereum the more they succeed the more ethereum succeeds so we're talking about decentralized Finance nfts stable coins layer twos gaming gambling metaverse AI Big Data oracles and much much more beyond that plus ethereum has a burning mechanism built in which is a Perpetual stock buyback mechanism which decreases the supply of ethereum in the long term and of course you can stake ethereum to earn some sweet sweet yearly returns now in my opinion in my opinion most investors entering the market would

be well served by just owning a 50 50 split of Bitcoin and of ethereum gives you big exposure to the entire crypto space it's together these two coins actually represent about 65 of the entire market cap of crypto so holding just these two coins is probably pretty close to holding an index fund for crypto if you will also one bonus for both Bitcoin and ethereum is that they are increasingly getting different products we're seeing stock traded products like ETFs being launched for these cryptocurrencies so depending on where you live there may actually be an option

to buy a BTC ETF or an ETF via your brokerage account now let's discuss the real money maker in crypto altcoins figure risk but also potentially bigger Rewards well Bitcoin and ethereum are a nice bit of spice for a traditional portfolio if you're actually looking to make it big in crypto make millions of dollars thousand X gains all that kind of stuff then you're going to need to risk life and limb in the altcoin jungle all coins are basically all coins except Bitcoin and ethereum they broadly break down into three categories we have big caps

these are like the top 20 coins right generally they're considered a bit safer than some of the lower cap stuff obviously but they're also generally more boring Investments that will have smaller returns mid caps they range from top 20 to maybe the top 200 or top 300 under by market cap then of course we have small caps which are usually considered as the alt coins with under a hundred million or so by market cap you might even look at what's the micro caps under 10 million or even under million dollar market cap coins those are

really high risk right try things like this big caps low risk low reward mid caps mid risk mid reward low caps high risk High reward simple breakdown but which ones to buy Lark what are the good coins well that's a tough question it goes beyond the scope of saying this coin or that coin it's not really what this video is about but here are some tips to look out for look out for big Partners such as apple or tencent that's a real sign of approval what about big VCS is a16z or coinbase or Pantera on

board because all the big VCS don't always get it right they can definitely often anyway sniff out the good from the look as well for good novel ideas or ideas that do something better than their predecessors things that you can relate to and understand like oh that makes sense that business model makes sense to me I understand that pay attention to the teams too that have the experience needed to actually make this into a success and in particular pay attention to the Token model is the token even needed at all you'd be surprised at how

often a token is not needed at all or it's just like some BS token that does nothing like giving you rights to govern the platform governance tokens Can pump but they're not great tokens other things can you get a staking reward from that token is that token staking reward sustainable does it have a burning mechanism what percentage of the supply has been released into the market already how much of the rest of the supply is going to be released and when is the market about to be flooded with coins it's going to dilute coins you

buy right now and send them to zero all stuff to think about also understand that crypto can be really really dumb sometimes and look everybody wants to get rich overnight which is exactly why meme coins altcoins with pictures right they have zero use case but they make sometimes millions of percent returns for early investors and you have ketos coins with great teams great use cases and solid backers totally ignored by the market well coin with picture explodes that's just how it is don't fight it that's just markets man now let's discuss how do you actually

buy AI crypto now assuming you're not going to go The Brokerage route and buy a Bitcoin ETF we're going to theory of ETF they're gonna need to actually go out and open up a cryptocurrency exchange account my recommendations are Kraken for those of you based in the USA and Canada it's a great option and for everyone else in the world binance which has a lot more coins available on it I have referral links in the description if you need an account for either of those exchanges so in order to buy coins first you're going to

need to go and complete kyc this is know your customers basically need to verify your identity with the exchange exchanges have to comply with modern banking laws so it's not this is the surprise once you've done that you can start buying coins after you fund your account of course either by credit card or by sending a wire transfer which depending on where you're sending it from might take a few hours or a few days the process though is basically the same as you go through buying a stock on a brokerage you go you find the

coin you want to buy let's say Bitcoin you enter the amount of Bitcoin that you want to buy and then you click on the buy button basically it it's a pretty easy process actually it's not such a big learning curve from buying stocks when buying on an exchange but the big difference between stocks and crypto is that you can easily withdraw your coins from the cryptocurrency exchange and put them into your own wallet and that is a critical step because a cryptocurrency exchange it is not a bank it is not a stock brokerage it is

a Marketplace for digital assets an exchange hacks happen bankruptcies happen you can't trust the exchange for that you will need to download a software wallet or preferably to buy a hardware wallet that then puts you in control of your crypto not the cryptocurrency exchange but you which is kind of the whole point of crypto the great power comes great responsibility of course you have to be careful with your keys when you do that okay now for the part you've probably been waiting for how do I make money with crypto man well there are three key

ways people do this first selling your coins that yeah bot low when the price goes High seems really obvious I understand but most people actually buy high and then sell low you want to to win right so you need to do the opposite of that Buy Low sell high now that involves learning some key skills like understanding Market Cycles understanding sentiment in the market understanding you need to buy when everyone else is afraid learning technicals like the RSI to help you spot good buying opportunities you know spending time in the markets to find a new

trending opportunities new D5 farms and all that stuff and of course then Having the courage to be a contrarian and buy when everyone else is not willing to when something so fresh everyone's calling it a scam or something so low everyone's all that's going to go to zero you can also make good money in crypto by buying and staking coins such as ethereum or cardano although once again you really want to time your buys well with this you see it doesn't really matter if you're getting solid five percent a year on staking your cardano for

example if your total investment is down by like 75 because you bought the top right you want to buy that cheap then stake it and then you can really juice some returns out of that the Third Way is from defy this is when you put your money to work on chain and different Finance protocols that for example pay you fees for stuff like doing the service of providing liquidity this can be a really great way to earn some extra cash with your crypto portfolio but then again you can also lose everything through a hack so

keep that in mind but remember none of what I just said matters unless you take profits at some point doesn't matter how good your entry was how many coins you got from that D5 Farm how many coins you got from staking if you never click the sell button you will never ever ever make any money in crypto so when you are sitting on big profits consider clicking the sell button turn the lizard brain off and click the sell button because most investors what they do in crypto make a round trip they buy their coins really

they get great entries they watch the coin pump to millions and then they watch it all crash back to zero do not do that write this down take your profits or the market will take them for you okay that's it subscribe now I'll see you next time foreign [Music]