How to Make Your Millions Investing in Cryptocurrencies in 2021
You should know there are more options than just Bitcoin
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With Bitcoin reaching a new all-time high in 2020, this is the time for you to make your millions investing in cryptocurrencies. As financial institutions are jumping on board, it’s not too late for you to do the same. If Wall Street is getting richer, you should do the same.
This year has been horrible for many but cryptocurrencies have been the bright spot. Many big named companies have changed their investing stance unless your name is Warren Buffett and Peter Schiff. Sometimes you can’t teach an old dog new tricks.
Both of these gentlemen are very smart investors but possibly stubborn when it comes to cryptocurrencies. Understanding cryptocurrencies is not hard but does take a little bit of time and effort to figure out this investment. I encourage you to read and watch YouTube videos on cryptocurrencies. Try not to digest too much about what traditional news says about cryptocurrencies. You should find cryptocurrency-related news sites.
Dollar-cost average
Dollar-cost averaging is when the investor buys stocks or another investment at a regular interval. For example, the investor buys shares of a stock over a period of time. The investor does not try to time the market but invests consistently every month or over a set period of time.
This is exactly what a cryptocurrency investor should do. There is no formula, chart, or metric you need to understand. You need to figure out your budget and invest a certain amount of money to invest every month.
Don’t day/swing trade unless you know what you’re doing
Unless you are an experienced investor, you should avoid day trading in cryptocurrencies. The method of day/swing trading is similar in stocks compared to cryptocurrencies. Some cryptocurrency investors do this to make a profit.
Day trading is buying an investment and then selling within minutes or hours of your purchase.
Swing trading is similar to day trading but a little different.
Swing trading is buying an investment and then selling within a short period of time for a gain. This could be a few days or several weeks.
One reason I avoid swing trading is the taxes you have to pay. I will pay my taxes but don’t want to figure out too many calculations for trading. If I can sell a handful of times, this will be a lot easier to do the math rather than figuring out dozens or hundreds of trades.
I’m a lazy investor and want to keep things as simple as possible.
Invest in altcoins
All of the news is about Bitcoin since it is the first cryptocurrency created. Bitcoin also gets the attention because of the double-digit price that comes with it. Investing in Bitcoin is not wrong, but investing in Bitcoin to make millions could take years.
When Bitcoin first emerged, the price for one Bitcoin was trading around $.0008 to $.08 cents in July 2010. Today Bitcoin is trading at $18,978.54 which is well over a 100% return. Investors and analysts believe Bitcoin could reach $100,000 to $200,000 by December 2021.
The problem is not many people have $18,978 sitting around to invest. Only the wealthy investors do and they have been buying.
If you bought earlier this year when Bitcoin was around $4,000 that seems to be a more affordable investment. Even buying a fraction at this price is more reasonable for investors. Now, the price has gone up 400% since then.
Why I am betting BIG on the penny altcoins
I started cryptocurrencies investing in 2017 right before the last bull run in this market. Buying Bitcoin at that point didn’t make a lot of sense for me. I started to invest in several altcoins or alternative currencies. Basically, these are cryptocurrencies that are not named Bitcoin.
Once I started to understand the market better, I saw a lot of altcoins return 100% or more to their investors. This is my game plan going into this market.
To break my investment down further, there is a possibility several altcoins could see a 1000% return. Many of these altcoins are trading for around a penny or less. To me, these altcoins have a good chance of seeing a great return on my investment.
Altcoins that could see 10X returns in the next bull run. This list is what I am investing in and is not a recommendation for you to buy without doing your own research.
The altcoins I am buying right now include the following:
Digibyte (DGB) — currently $0.02
IOST (IOST) — currently $0.006
NIM (Nimiq) — currently $0.002
VET (VeChain) — currently $0.01
DX (DX) — currently $0.001
My final thoughts
I am looking for my cryptocurrencies to reach close to $1.00 per altcoin. Some of the cryptocurrencies may reach $1.00 while others may not. No one has a crystal ball since cryptocurrencies are on different timelines with their platform. Some are further ahead than others on their timeline which their white paper indicates.
This is why I spread my investments into different cryptocurrencies. Once altcoin season is here, the altcoins will take off as they did in the last bull run.
Currently, several altcoins are seeing double-digit gains. I expect this will continue going into 2021.
Are you invested in any of these cryptocurrencies?
Tom Handy is a top writer on Medium, former Quora writer, and father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1 and his publication Life is Like a Game.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
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