So I Bought Bitcoin - What's Next?
When it comes to Cryptocurrency, there is no shortage of things you can do.
Whether it's reading the daily news articles here on GCA, following the charts on coinmarketcap, watching youtube videos by Ameer Rosic, The Dollar Vigilante, Node investor or Omar Bham, or doing whitepaper research.
Yet a lot of people wonder what the next steps are after purchasing their first Bitcoin (or satoshi at that ;)).
Know Your Options With Cryptocurrency
Let’s first talk about what you can do with Cryptocurrency and inside of the Cryptocurrency realm.
Holding Cryptocurrency As a Store Of Value
One of the main reasons that people are buying Cryptocurrency is the same reason that people buy gold and silver.
Cryptocurrency can be a store of value...
Notice that I said “can be.”
Cryptocurrency, or currency itself, was created as a store of value.
(Some way to preserve and know the value that something is over time.)
Despite that, Bitcoin, Ethereum, and the like constantly fluctuate in value when compared the U.S. Dollar and other fiat currencies.
That isn’t to say they aren’t stores of value, as similar to a Bond or the DOW JONES. Bitcoin has been growing in value as users aim to increase their profile, or get a chance at purchasing one Bitcoin before it becomes a global currency...
Cryptocurrency is becoming a major store of value for people looking to take their money outside of the system-of-control known as the U.S. dollar, bonds and the stock market.
Using Cryptocurrency For Day To Day Purchases
Another popular use case for Cryptocurrency is to actually use it as a currency.
While this may seem hard to believe as Bitcoin has moved in price from $900 to $8000 in 2017 alone, Cryptocurrency is a source of currency used everyday.
In fact, there are over 260,000 places that accept Cryptocurrency. As vendors like Square Cash App and others start accepting Cryptocurrency, it will become a major currency in the global capitalist market.
Imagine using crypto for an Uber or Bike rental in a city, which is instant, instead of a Credit Card/Cash.
This is already happening and places like Cryptocribs (a blockchain airbnb) is helping to popularize Cryptocurrencies original use, as a currency with a ledger.
Although, most people hear the infamous 10,000 Bitcoin pizza story and wonder if cryptocurrency is wise to use.
Yes, someone used 10,000 BTC to buy 2 pizzas at one point in time, making each pizza as of today roughly $30,000,000.
Yet, the truth is that this means of exchange becomes more valuable and refined as people use it as a currency.
So don’t fear spending it, even though it will increase in value, just be smart, utilizing the principle of being frugal with it, because it will increase in value.
Diversifying A Portfolio Of Cryptocurrency For The Long-term
Whether you are looking to buy multiple cryptocurrencies or only hold a few, a diversified portfolio can help with long-term wealth similar to any other area.
Don’t put all your eggs in one basket, as the old saying goes.
And with Cryptocurrency it makes sense.
Although, currently it may seem like there isn’t a true ability to diversify portfolios because when Bitcoin goes up, Alt-coins go down, and when
Bitcoin goes down Alt-coins are affected as well. There is still value to buying into coins that you evaluate as higher and holding for the long-term (we talk about investing strategies and top coins to buy in our Monthly Premium Report here).
Warren Buffett and Charlie Munger use a method of investing which requires a diverse portfolio of companies that you have evaluated to be worth more than they currently are.
In Cryptocurrency this should be the same, find the coins that have solid companies and communities which could scale and diversify your portfolio with them.
In our monthly report we always breakdown between 3-5 coins that we are looking at ourselves, and that have the potential for huge profit.
When investing, just make sure to pay attention to the market, the companies you own and detach emotions.
Day Trading Cryptocurrency
Similar to FOREX or foreign exchange of currencies, Cryptocurrencies can be traded on exchanges.
Remember that day trading is not easy and not for everyone.
Don’t go into day trading with the hopes of jumping into a coin and making $1 million dollars, but instead aim for small marginal gains daily, between 3-5%.
It isn’t something most people should pursue as it takes technical analysis, market research and a lot of man hours but for the select few it could really benefit them.
Make Sure To Store Your Bitcoin Safely
While cryptocurrency is backed by cryptography hence the name CRYPTOcurrency, there are still many things that can go wrong.
Storing your coins on an exchange leaves them in the hands of someone else, instead of in an area where you hold the private keys.
Either way, the main point is that you should secure your Cryptocurrency after buying it, instead of waiting.
Join The Movement
While on the front it seems that Cryptocurrency is about making money - this is a movement.
It is people helping bring back value to those who perform work, and in a decentralized way where trust doesn’t need to be an afterthought.
There are tons of groups on Facebook, websites, and companies starting to help change this world.
It’s time to be part of it!