We always believe we have missed the boat when it comes to investing. Yesterday is always the best time to invest in any particular asset. However, don’t give up so easily—the markets still may have some life left in them.
When it comes to cryptocurrencies, most people do not know how to invest. They hear the word crypto, and they feel that they should be investing; however, it’s not so simple to invest your money.
There are tons of different altcoins (coins not Bitcoin) in which to invest your money. There are various centralized and decentralized exchanges to choose between—each offering additional rewards. How does one decide how best to allocate their resources in today’s crypto world?
Stocks vs. Cryptos
Well, no need to get overwhelmed. Let’s start with some of the basics, and then we can get you heading in the right direction. And yes, it is a great time to invest in crypto!
Investing goals. The most important part of any investing adventure is knowing what end state you plan to achieve. I like to say, “What is your rich life?” If you could be anywhere or with anyone, where would you be and with whom?
These are important questions because they drive your investing thesis. How you invest is just as important as the products you choose. Life is not a game, nor is investing. The more seriously you take your initial investment thesis, the more tremendous success you can achieve.
Why invest in crypto? Now, why invest in crypto inside your overall investment and cash flow plan? I wrote a similar article about the stock market titled “Why Do I Need to Invest in the Stock Market?”
Crypto lies in its own asset class, and diversifying your passive income is vital to long-term success. You have to decide the total allocation of crypto you would like to have in your portfolio.
Most people go with roughly 1-3%, but you can add more if you decide to invest the time and energy needed to learn about crypto. I have approximately $8,000 of my $200,000 portfolio invested in various crypto assets—so roughly 4%. I plan on sticking with this number for a while.
Can You Achieve Work-Life Balance 2
Crypto Education. Now, don’t get too excited and run off and start investing. You’ll need to educate yourself first. Yes, you can always put money in Bitcoin and get decent results. But, anything more than that, I recommend reading a couple of books to understand the world of crypto.
The first book I recommend is “How to DeFi -Beginner.” This book will walk you through all the terms of crypto, and more importantly, give you a look into the future of this asset class.
The following books will be books that I have written myself. The books “My First Book on Cryptocurrencies” and “My Second Book on Cryptocurrencies” will cover everything I learned about crypto over the last eight months. A few months ago, I was just like you. I did not know one thing about crypto, but I made it a priority to learn as much as possible; these books result from my efforts.
Prepare for Inflation
Further education. I can also break down my articles into a couple of series I wrote along the way. The CryptoCurrency 101 series covers essential knowledge about crypto. The Passive Income in Defi 101 series talks about earning income in crypto outside of capital gains.
“The Magic of Cryptocurrencies” talks about how crypto can be a significant part of your portfolio and your future. Another hot topic in the crypto-verse is NFTs or Non-Fungible Tokens. These allow the creator to build unique items that may hold value over time. Read the article “Let’s Get Rich with NFTs” for more information.
Retirement Planning for the Average Person
The right time. Yes, now is a great time to invest in crypto. Just like the stock market has been around for over 100 years, crypto will be around for a very long time. You will need to put your long-term glasses on as you invest.
Sadly, if you are looking to make a quick buck, I may not bet the author for you. I believe in making our families rich over time—building generational wealth. Crypto can be a vital hedge in our portfolio along with business, royalties, retirement income, rents, and dividends.
Together they form a great path to long-term wealth and generational success. So take it slow, learn as much as you can, and think about your future as you invest.
It is an exciting time to be an investor. Never have we had access to so many ways to invest, and all from our cell phones. Don’t follow the crowd; build your own investing thesis, execute your plan, and you will find great success.
Thanks for reading. For more on crypto, please follow me on Twitter and my Facebook Page. Enjoy and Happy Investing.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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