By now, you must have heard of Bitcoin.
You know, the digital cryptocurrency that is kicking ass and has now become the single most valuable commodity in the world?
Bitcoin and cryptocurrency trading has changed my life and I have a confession to make; I’m not quite so broke any more.
Since I first put together my cryptocurrency portfolio eleven months ago, I have made over $300,000 from an investment of $9000.
Read on to find out how you can invest in cryptocurrency and exactly what coins make up my cryptocurrency portfolio…
Table of Contents
- Quick Information on Building a Crypto Portfolio
- Will building a cryptocurrency portfolio take ages?
- So, what exactly is cryptocurrency?
- Why should I care?
- Why are you telling us this?
- How can I get involved?
- Which coins are in your Cryptocurrency portfolio?
- What are your favourite coins for 2018?
- How can I buy more coins?
- Everybody says Crypto is a bubble?
- How can I properly protect my investment?
- How do you recommend I trade?
- Do you have more information on trading Crypto?
- Improving your cryptocurrency knowledge
- FAQ’s on investing in Ethereum
Quick Information on Building a Crypto Portfolio
- Easiest place to buy Bitcoin – Coinbase
- Trading platforms still accepting new members – KuCoin (Top Pick, read full review)
- Best trading platform – Binance
- Best way to protect your portfolio – Trezor Hard Wallet
- Safest coins to invest in – BTC, ETH, ICX, XMR, LTC
- Best app for tracking your portfolio – Blockfolio
In December 2016, I started trading cryptocurrency online.
The thing is, I didn’t know much about trading. I put in $9000 – $4000 of this was my life savings, $5000 was on credit cards.
I then promptly lost a fuck ton of money as I made stupid mistakes and panic-sold on dips. Pretty quickly, my stack was ground down to $5500.
I settled in and over a few weeks I taught myself how to trade cryptocurrency.
The market is on an unbelievably strong upswing and I want to stress that I am not a veteran, or even a particularly good, trader.
In fact, whilst I have made a huge amount of money over the last year, I would have made even more money if I had just sat on my initial investment of Bitcoin and done nothing.
For a lazy investor, building a Cryptocurrency portfolio is perfect – spread your investment across 5 – 20 coins, protect your investment properly (more on that in a moment), and then just sit back and wait a couple of years.
You will probably make 1000% or more on your investment (depending on when you get involved) if you follow the basic rules of trading cryptocurrency….
Don’t panic – Dips happen and they are healthy, nine times out of ten coins will dip and then bounce back. Whilst crashes do occur you can avoid them by choosing the right coins to invest in.
Hold, hold, hold! – Today, I finally sold $15,000 of a coin I had been trapped in for over a year. It spiked from 20 cents a coin to 45 cents a coin and bam! – I dumped that motherfucker at a healthy profit (I had been in since it was half a cent a coin). I knew this coin would eventually spike so I held, and I waited.
You don’t actually have to trade – I cannot stress this enough. Split your investment across ten good coins, throw those coins on a hard wallet and wait two years.
Don’t get crazy greedy – Be ready to take profits. Personally, I sell half of my stake in a coin every time the coin doubles in value, this way I am playing with profit. It’s greedy traders who end up broke traders.
Will building a cryptocurrency portfolio take ages?
I’ve had a lot of friends ask my about building a cryptocurrency portfolio and many of my friends think that I spend a lot of time trading crypto.
Whilst I did initially spend a lot of time researching and teaching myself how to trade, I now spend less than two hours a week actively trading.
When I was in Pakistan, leading my tour, I didn’t even check on my crypto portfolio for over a month.
For beginners, I truly do recommend that you just spread your bets and wait but if you want to try and actively increase your investment you can get into trading on an exchange.
I’m not a daytrader, I’m a swing trader – I try to catch big swings in the market, I buy low and sell high, sometimes holding a position for months before I can exit at a profit.
Right now, investing in cryptocurrency offers more potential reward than any other investment opportunity, to ignore Cryptocurrency for another year would be disastrous… I truly believe that this is the financial revolution. Get involved or miss out.
So, what exactly is cryptocurrency?
Surely you’ve heard of Bitcoin? Bitcoin was the first cryptocurrency and was used for anonymous transactions on the web.
Cryptocurrencies are best thought of as stocks or commodities – Bitcoin is gold.
After Bitcoin there are 10 – 20 other coins that are bluechip coins; these are coins with a large chunk of the crypto market, a dedicated following and a real application.
For example – Monero is a coin which focuses on absolute privacy. If you buy something or are paid for something online with Monero, it is impossible to trace the transaction. Monero is one of my favourite coins.
These 10-20 bluechip coins are the safest long-term investments as they are the least likely to tank.
Then there are hundreds of other coins, the shitcoins – which usually start off with a value of almost nothing; We’re talking values of a couple of hundred coins per US cent.
The shitcoins are exciting too as if they become legit, they can increase in value rapidly by 10,000% or more. You can make a killing on shitcoins, but you can also lose your money so you need to be careful – more on that in a bit.
Why should I care?
Right now, trading cryptocurrency offers a truly incredible potential return.
In July 2010, the price of a single Bitcoin was eight cents.
A year ago, when I bought my first Bitcoin, it cost $650.
Today, the price of a single Bitcoin is $16,000 dollars.
By the end of 2018, I predict that Bitcoin will be worth $100,000 a coin.
I believe that the window to enter cryptocurrency trading in rapidly closing – soon, most of the bluechip coins will be extremely expensive and unable to double in value as easily as they can right now.
Why are you telling us this?
I feel compelled to spread the word; cryptocurrency is an amazing chance to make a fuck ton of money with a relatively small investment. The problem is, the window is closing. Many coins have already doubled in value many many times, the more a coin doubles in value, the harder it gets for it to double again and you to make a tidy 100% on your portfolio…
Anyways, I digress.
I don’t want to make a business out of selling cryptocurrency tips – I’m simply too damn busy.
I did think long and hard about packaging all this info up and selling it as a course but honestly, I’m too busy and I don’t want to try and portray myself as an authority on this.
I know my shit, but I’m no expert – I only spend a couple of hours a week trading cryptocurrency.
There is an affiliate link in this article – this earns both you and me $10 each of Bitcoin when you buy more than $100 of Bitcoin to start off your portfolio. Feel free to use this link, or ignore it if you prefer to find another way to buy your coins.
I simply want to arm you with this information so that you do not miss out on the financial revolution. The chance to build a cyptocurrency portfolio that makes you good money is now, by the end of 2018 it will be too late to join the race and still make insane profits.
How can I get involved?
Firstly, it’s important to make sure you only invest money you can afford to lose – trading cryptocurrencies, or any other stock or commodity, carries a risk.
My advice is simple – purchase ten of the top coins and hold them for a year.
To get started, simply buy Bitcoin on Coinbase or elsewhere, send the Bitcoin to an exchange and then use the Bitcoin to buy the other coins you want to hold.
Something you need to understand is you don’t have to buy a whole coin, you can buy 0.000001 of a BTC if you want to.
Which coins you should invest in changes daily but here are some of the best coins in my opinion…
Bitcoin, Ethereum, Monero, Litecoin, Ripple, Dash, Civic, Iota, Siacoin, Golem, Neo, Maid, OMG, Steem, Potcoin, Zcash, Hempcoin.
If you want to dip your toes into trading cryptocurrency, then my top tip for cryptocurrency trading beginners is to simply split your investment across Bitcoin, Litecoin and Ethereum.
Ethereum is widely considered to be the biggest contender to Bitcoin and after Bitcoin, Ethereum has the largest chunk of the cryptocurrency market – it is, in my opinion, a relatively safe bet.
Ethereum recently broke the $1000 mark and I predict it will hit $5000 a coin by the end of 2018 (and probably way before that).
Since January 2017, the value of Eth has skyrocketed from $6 to $1000 – You can buy Ethereum here – if you use this link we will both get $10 of free Bitcoin.
If you have issues buying Bitcoin or Ethereum on Coinbase, due to the country you are trying to access it from, try CoinMama instead.
Which coins are in your Cryptocurrency portfolio?
I have diversified into multiple different coins and my cryptocurrency portfolio is split into several tiers of investment. I have selected which coins to invest in with care and every coin is on this list for a reason. Some of these coins cost thousands of dollars a pop, others are mere cents.
I have built my cryptocurrency portfolio using a risk-reward formula that is acceptable to me. You’ll have to decide how much risk you want to take on and that should influence which coins you invest in.
I recommend keeping at least 50% of your portfolio in safe-ish coins like Bitcoin, Ethereum, Monero and, my new favourite, Icon.
Personally, I have a high tolerance to risk and have invested in some coins which other traders find baffling – I was widely criticised amongst my crypto buddies for investing heavily in Ripple and Siacoin (although both paid off big time).
When building your own cryptocurrency portfolio you should not simply copy mine, always do your own research and decide which coins you can excited about.
Crucially, entry point is very important and I entered many of these coins months ago when they were cheaper, there may be better buys out there right now but as of the time of writing – early January – I am confident in my portfolio and expect my holdings to triple in the next few months.
Without further ado, here are the coins I am currently invested in…
Circuits of Value
These are ordered in descending order, the lions share of my portfolio is in Bitcoin and my smallest position is in Dopecoin.
What are your favourite coins for 2018?
I intend on covering this in much greater depth in the near future but I wanted to give you guys a few tips here and now… Coins which I personally have invested in and which I feel could x 10 in 2018 are: Verge, Tron, Icon, Hempcoin, Sub, Cardano, Lisk, OmiseGo, DistrictOx and Siacoin.
How can I buy more coins?
Buying more coins to expand your cryptocurrency portfolio is a smart idea – the more you diversify, the better your chance of hitting a coin that goes to the moon. I do however recommend keeping at least 60% of your portfolio in relatively safe coins like Bitcoin, Ethereum, Litecoin and Monero.
Most cryptocurrencies can only be bought on trading exchanges and not on Coinbase and some cryptocurrencies are only available on one or two exchanges. Because of this, I personally am active on multiple exchanges.
The majority of cryptocurrencies can only be bought with Ethereum or Bitcoin so you have to buy one of those before you can purchase the smaller coins.
To properly expand your portfolio, you will need to join a trading platform – is the largest and most trusted trading platform out there and it lists a wide selection of decent coins.
You will need to first buy your Bitcoin (use this link for an extra $10 of BTC), you will then send your BTC to a cryptocurrency trading exchange. My favourite trading platform is Binance, but due to overwhelming demand, their doors are not always open.
Note: It is EXTREMELY likely that these exchanges will also temporarily stop taking new members so my advice is; open an account, even if you don’t plan on using it you will then have the option. Check out this list of cryptocurrency exchanges for more info and options.
I’m keeping a close eye on the situation and will be updating this post when Binance and other major exchanges reopen their doors. In the meantime, check out my ultimate guide to trading Crypto on Binance to get your head round how to send Bitcoin from Coinbase to an exchange.
If you have issues buying Bitcoin on Coinbase, try CoinMama instead.
Once you have your BTC in place on Binance or another cryptocurrency exchange, you can then expand your portfolio and buy other coins.
Note: There are many cryptocurrency exchanges out there however the big boys – Bitfinex, Bittrex and Poloniex – are no longer accepting new users due to extraordinary demand. KuCoin is the best trading exchange that still takes on new users.
Everybody says Crypto is a bubble?
Is there a risk to investing in cryptocurrency? Hell yes there is. It could be a bubble… or, it could be the future of money.
Frankly though, I don’t see this train stopping any time soon and everybody should throw at least a couple of hundred bucks at crypto to hedge their bets. You may lose your money and if that freaks you out, maybe this isn’t for you. Here’s the thing though, only with risk can one hope to profit – this applies to all aspects of your life.
If this is the future of money and you miss out, you’re screwed.
How can I properly protect my investment?
I am very glad you asked!
Cryptocurrency thefts have occurred numerous times and some folks have lost millions.
There are two ways to securely protect your money…
Firstly, if you are keeping money on Bitfinex or Coinbase, you MUST turn on 2FA. This adds an extra layer of security and makes it harder for hackers to get at your coins.
If you’re really paranoid, like me, and want to protect your cryptocurrency portfolio properly then I strongly recommend getting a hard wallet.
I recently invested in a Trezor – this is, simply put, the most secure way to protect your coins.
How do you recommend I trade?
It’s important to realise that you need to do your own research and come up with your own strategy for cryptocurrency trading. If you are short on time and want to play it safe; the easiest cause of action is to simply diversify into several different coins and then wait a year or more. However, if you want to maximise profits you should learn how to swing trade cryptocurrency. I strongly recommend swing trading over day trading – day trading is stressful, time consuming and only really profitable if you have a lot of money to play with. Swing trading involves trying to capture large movements in the market – for example, you might decide that you want to net a profit of 30% on Ethereum…
You might buy in to your Ethereum position at $1000, you set your sell position $1300. Your sell order could take days, weeks, months, years or till the end of time to be filled. Once it has been filled, you then take that profit and you roll it over in to a new buy over at, say, $1100. Choosing good targets for your buy and sell orders is crucial if you want to be a successful swing trader but overall swing trading cryptocurrency is pretty easy – set your orders and then just wait. The market is so volatile that big movements up and down are pretty common and you can capitalise on this through swing trading. I recommend choosing a group of coins to be in and then sticking to swing trading in those coins rather than jumping constantly between different cryptocurrencies – it does help to have an understanding of what different coins do and how much volatility can be expected and you will gain that understanding with time. Good luck!
Do you have more information on trading Crypto?
A while back, I put together a google doc for close friends and family who wanted to get involved with Crypto. Everybody has now at least doubled their money and some people have made a killing. I am now making this Google doc publicly available – it’s here, it’s free, your welcome 🙂
Improving your cryptocurrency knowledge
Ultimately, if you want to make money with crypto you have a couple of options. The easiest thing to do is to build a diversified portfolio of carefully selected coins and then to simply wait a couple of years. However, this is not the most effective way to make mad money. If you want to truly crush it at crypto, you need access to truly knowledgable people.
I am not your guru. I’m a crypto enthusiast, not a professional trader, and I make plenty of mistakes. There are a huge amount of ‘gurus’ and ‘experts’ out there but the truth is that many of them haven’t got a fucking clue what they are talking about. Opinions in cryptocurrency are like assholes, everybody’s got one. It’s extremely easy to predict the market and hell, everybody seems like an expert, when cryptocurrency is experiencing a bull run.
It’s very very easy to make mad money when the market is on an upswing, less so when cryptocurrency enters a bear market. Talented traders, and those with information, can make money on the way up and on the way down.
One thing I’ve noticed is that the media, especially Twitter, can have huge effects of the market. If you decide that cryptocurrency is your new thing, if this is where you want to spend your time, then I strongly recommend that you educate yourself and improve your understanding of who to follow, who to trust, when to buy and when to hold.
There are many groups on Facebook where you can find likeminded folks who will happily talk crypto all day but the problem is that 99% of these groups are filled with people who have only a very basic understanding of cryptocurrency and the knowledge available here is not particularly strong. I have recently left almost every single group on Facebook as, in my opinion, they are largely filled with FUD.
Recently, I joined a paid cryptocurrency mastermind group and the tips in here have been pretty next level. Currently this group, which I cannot name, is not taking new members.
There are alternatives out there though. A friend of mine who is well connected in the crypto space, Derrick, has teamed up with the legendary Diggy Dirk and created a platform for newbie cryptocurrency traders and enthusiasts – Keys To Freedom.
Whilst I am not a member of this community myself, many members have reported tripling their investments by following Derrick’s advice.
If you are serious about cryptocurrency trading, I strongly recommend finding a mastermind group that suits your skill level and budget so that you can improve your knowledge, expose yourself to less risk, and gain access to news and tips before they hit the mainstream market – this is where the real money is to be made.
FAQ’s on investing in Ethereum
Since I’ve received a ton of questions about investing specifically in Ethereum, here are some answers…
How high could Ethereum go?
ETH is extremely likely to hit $1000. Here’s hoping for $5000.
Is now the best time to buy?
Nope, that was over a year ago.
Can I still double my money?
Yes, that is possible but not guaranteed.
Is there a risk?
Of course. In my opinion though, there is an 80% chance you will make money on Ethereum if you buy it soon and can sit on it for 12 months.
Are you available to answer all of my questions?
How do I buy Ethereum?
Most cryptocurrencies must be purchased with Bitcoin but Ethereum is paired against the dollar as well and you can buy Ethereum here using USD – If you use this link we will both get $10 of free Bitcoin.
I’m having a problem with coinbase?
This is free advice, I’m not tech support. Coinbase is legit and trustworthy, open a support ticket if you have a problem.
Are you going to release more info on Cryptocurrency in the future?
Proabably not – most of the info I have is in this doc. Sign up to the newsletter to be kept in the loop if I DO release anything further down the line…
Happy trading amigos, good luck, stay calm, stack that cash!
Disclaimer: I am not a professional (or even a veteran) trader. I am an intermediate trader with a passion for cryptocurrency. I am disclosing my own ventures in crypto because cryptocurrency trading does make up a chunk of my online income and I want to be 100% transparent with you when it comes to making money online. Investing in cryptocurrencies carries a risk – you may lose some or all of your investment. Always do your own research and draw your own conclusions. Again – this article is aimed purely at advising; draw your own conclusions on whether cryptocurrency trading is right for you.
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