Bitcoin may as well be a lottery ticket right now.
Everyone and their mother (literally) is figuring out how to jump on the bandwagon that’s created teenage millionaires in a matter of months…
But very few have any knowledge or experience with cryptocurrencies and how to trade and invest in them.
So, assuming zero experience, let’s walk you through the Rich Man’s guide to betting on bitcoin…and winning!
For anyone who doesn’t know, a cryptocurrency is a digital currency or asset that uses cryptography for security purposes.
Bitcoin is the most popular and well-known cryptocurrency, although there are now a countless number of individual cryptocurrencies.
For most, the one thing they know about bitcoin is that it can make you filthy rich.
Well, yes, it’s certainly given the lucky few who took a flyer and guessed on bitcoin a very handsome reward.
But that doesn’t mean it’s time to throw your life savings into bitcoin right now!
So, I want to express the Rich Man’s guide to betting on bitcoin by breaking everything down into three big parts…
1. Litecoin leak
Litecoin is one of the most popular cryptocurrencies behind bitcoin (5th highest market cap), and is one of just three cryptocurrencies exchanged through Coinbase, the most popular crypto exchange.
Just last week the news broke that Litecoin’s creator, Charlie Lee, “sold and donated” all of his own litecoin, siting conflict of interest as his reason for offloading the cryptocurrency.
I don’t care what sort of conflict Lee is talking about; there’s NO way he sells all his litecoin if he believes it’s going to continue climbing, no matter what he says. At the very least, the volatility and unpredictable nature of cryptocurrency value has scared Lee into taking his money and running.
This news should NOT be taken lightly, and could be one of the first signs that cryptocurrencies aren’t the surefire ticket to riches that so many believe them to be…
2. FOMO
Although the bitcoin rally may have started based on hard data and the introduction of practical uses for the cryptocurrency, it’s been fueled almost entirely by FOMO, the Fear of Missing Out.
FOMO’s unique mixture of greed and fear has an incredible effect on people, including pushing them to throw money they can’t afford to lose at something they don’t understand.
But hey, that’s how the world works.
Of course, plenty of people have made plenty of quick cash on bitcoin, but news headlines talking about those teenage bitcoin millionaires create a distorted picture for the public.
My simple advice is not to let FOMO be the reason you invest in bitcoin (or anything, ever).
3. Consider Your Money Gone
The real Rich Man’s guide to betting on bitcoin comes down to this:
If you are going to invest in bitcoin (or any other cryptocurrency) with zero experience or knowledge of it, invest like a rich man by starting with an amount you can afford to lose and consider it gone right away…
Stay with me, because I know it’s a difficult thing to act like you’ve lost your money as soon as you invest it.
But this is the very best way to invest in anything with A) a lot of volatility, B) no experience going in, and C) the potential to go to zero.
Why?
Because this will truly make you decide on an amount to invest that you can absolutely afford to lose!
This allows you to start relatively small, and then once you have a taste of the bitcoin rollercoaster with skin in the game, you can add to your position and lock in gains with mental stop losses that tell you when to get out!
For those of you ready to jump in, look for a reputable crypto exchange like Coinbase to get started…
