So, you have $1000 dollars and ready to make your first cryptocurrency investment. First off let me congratulate you for wanting to make this endeavor. It’s going to be a somewhat rocky experience if your new to the crypto game in the beginning. But as things go along, you’ll get the hang of things, and hopefully grow this $1k into $10k and beyond. Now we must point out that none of this is financial advice, but these are some tips that have helped me grow my own crypto accounts. Let’s begin.
What Is Cryptocurrency & Why Invest In It?
Crypto is the future that will redefine money. This is a method of payment that can be used to buy goods and services online, just like hard cash. Most cryptocurrencies are either called tokens or coins.
It works using ‘blockchain’, which in simpler words, is a way of keeping track of every single transaction. Every person who is a part of blockchain has information of all the transactions, so it cannot be hacked, nor can it be changed for cheating purposes by anyone.
How to Invest?
Let’s suppose you have a thousand dollars. Investing your money in cryptocurrency is a broad domain with a wide array of choices! You must have heard a lot of them.
Some were told by brokers, some by friends or colleagues read some online, or even discussed at family events. The best way is to put the $1000 in 4 different parts (not necessarily equal parts). Invest only in the leading cryptocurrency as you do not have sufficient knowledge to invest in the newbies.
So, the undermentioned list contains the top 10 going cryptocurrencies where you can invest, according to Forbes.
- Binance Coin
- Shiba Inu
Diversity is a Key Factor!
Another thing about investing $1000 in cryptocurrency is diversifying. Diversifying your investment is the smartest move in your investing career. It is a quantitative approach to allocate your capital for investment. It is also a safer and much more stable method of investment.
Diversification might end up being your smartest decision, especially regarding your financial wellbeing. For example, let us suppose a situation where you invested all of your amounts in one place, and it started good, so you reinvested and kept doing that, but suddenly, the uncertainty happened. Consequently, you will lose all your money and progress. This smart method will not only save a massive chunk but help you cope up with tackling the uncertainty.
Wait For The Right Time!
Why wait for the right time to invest your money? This is to ensure that you make the most out of your investment. It is mostly said to invest whenever the market crashes. Certainly, that is not a good idea because a crash is never known, and you might have to wait for ages.
As soon as the spike goes down, you see a certain advantage you feel is promising, and you can finally invest. This will give you some time to play around and test what suits you best.
Taking out all your money at the right time is also an essential part of investing. Of course, you can have different plans and work your way differently, but here is a method that might suit you.
Play with crypto. Invest in when the prices go down and sell the stocks when they go up for other stocks that are falling. In this way, you can make the best out of investing. This way of investing is known as swing trading.
The traders use this technique by using indicators of the up and downtrend, which helps them predict stuff in the forthcoming. The duration of these tradings varies from overnight to weeks.
Using this technique, traders can easily determine a specific time to buy and sell the stocks or crypto. Of course, the traders have to be quick to exploit these opportunities to make profits in short periods.
Functioning of Swing Trading?
Swing trading strives to benefit from a security’s price fluctuation (also called swings), both upward and downward. Traders try to profit from quick movements inside a broader trend instead of waiting for long periods. Swing traders try for such a series of little wins that add up to a large profit.
Conventional traders, for example, may have to invest five months to make a 25% profit, whereas swing traders can generate 5% weekly gains and outperform other traders in the long run.
The majority of swing traders utilize daily charts (such as 60-minute, 24-hour, 48-hour, and so on) to figure out the optimal entry and exit points. On the other hand, others may prefer shorter time frames, such as 4-hour or hourly charts.
Rinse And Repeat
It is a phrase used for trial and error in business terms to keep learning and redoing. This is for making sure that the work is done most efficiently. This helps the traders to enhance the way they work and bring improvements.
It also suggests that there is not a failure, and there is still room for improvement. You might not make the best in your first investment. But, sooner or later, you’ll learn to make the best out of it.
Where to Try Your Luck?
There are multiple forums to start your investing career. However, we suggest you go for the leading and most promising platform out there, Binance US. You can have access to 50 plus cryptocurrencies. This is an online platform for people or organizations to gain their services in the cryptocurrency marketplace.
The undermentioned list contains some of the most frequently traded cryptocurrencies that are available on Binance US.
- Ethereum (ETH)
- PAX Gold (PAXG)
- Harmony (ONE)
- Orchid (OXT)
- Helium (HNT)
- Chainlink (LINK)
- Cardano (ADA)
- Stellar (XLM)
- Tether (USDT)
The Benefits of Using Binance US
There are multiple benefits of using this platform, such as it is user-friendly, cheaper yet more stable, highly secured, and many more. Some of them are listed below.
- Binance US offers storage for assets, crypto, and USD.
- It also provides real-time data to the organizational clients along with the feature of programming the trading bots.
- It is one of the safest platforms, rated 9.74 in cybersecurity from the CER crypto exchange platforms.
- It provides an easy and low investing fee for newbies in investing while providing services for them to grow big,
- It provides significant value to people who invest in crypto pairs and use that as their investing strategies.
If you were looking for how to invest $1000 in cryptocurrency we hope this helped you out. In conclusion, many might still be dubious about where to invest the $1000 into crypto with such high fluctuations or not. Still, there is always a sea of knowledge to learn and modify our techniques to tackle the exponentially changing new currency and money system, which might be revolutionizing. If you would like to learn some more cryptocurrency trading tips click here.