How to invest te cryptocurrency if you have $10K, $100K, and $1M USD, Cracking Bitcoin
Investment thoughts on all digital assets especially bitcoin
Use Coinbase to buy $8K of Bitcoin and $2K of Ethereum. Use the Coinbase Vault service to store your coins and turn on 2FA.
Fight back the temptation to day trade. For plainness sake, buy all at once, or you can setup a recurring weekly or monthly buy to dollar cost average.
Buy Bitcoin and Ethereum and one or two altcoins depending on how well you understand them. I’ve invested ter the space since 2013 and right now I own Five: Bitcoin, Ether (and a negligible amount of ETC), Dash, Monero, and Decred.
If you go beyond BTC and ETH, I can only confidently recommend Monero at this uur. Crypto switches prompt so that recommendation could switch te a week. But since I very first bought Dash around $17, the price has gone crazy and I don’t feel certain ter it anymore. Decred is a flier for mij.
Use a large trusted exchange like Poloniex and GDAX and Losbreken to purchase your coins – ideally ter a recurring buy overheen a number of weeks. If you want to buy all at once, consider an OTC service like itBit. I can introduce you to some OTC brokers spil well, but I’d only recommend OTC if you’re an experienced financial investor.
You can invest ter exchange listed products spil well, like GBTC and COINXBT. The pros include convenience, tax benefits, and some extra regulatory oversight. Cons include toegevoegd fees and counterparty risk. For more, here’s my write-up on the crypto fund investing landscape.
Keep the majority of your coins ter cold storage using a service like Coinbase Vault or Xapo, or a hardware wallet like Trezor and Ledger. Electrum is also a good local wallet.
Proceed with the above, and diversify your portfolio into a few other altcoins. Perhaps Decred or Dash or Zcash. I’d stay away from ICOs and token sales unless you truly know what you’re doing.
Crypto funds become an even more attractive option, especially private funds which have investor minimums. Examples include Pantera and Logos Fund.
Dollar cost average overheen a number of months, or find an OTC broker.
Diversify your cold storage solutions. Don’t waterput all your coins ter one place. Check those places routinely. Always turn on 2FA and have unique site-specific passwords and if a seed is required, save it somewhere secure.
Tracking becomes significant. CoinTracking is a good implement for portfolio monitoring and reporting and taxation. I’ve attempted it, but am still wedded to my hacked together Google spreadsheet.
There’s a loterijlot more you can do to optimize your crypto portfolio spil you increase your time spent and financial investment. Some of the coins opoffering werkonderbreking services to earn a terugwedstrijd on your holdings, eg, Dash and Decred. Go after community happenings on reddit and Slack and read read read.
But don’t day trade and don’t brief, unless you want to lose money. My view is that crypto will go from a $25B market cap today to $100B by 2020. Diversify your investments, witness them closely, adjust portfolio allocations to harshly match each coin’s respective market cap, and profit.