First, let me get this out of the way: I’m not a financial advisor. I’m just a gal who started investing in cryptocurrency and has learned a thing or two.
In early 2017, when cryptocurrency began taking off, I decided to take the plunge. I got in when the values were already somewhat high but before they got redonkulously high.
Because of my investment early on, I’ve made a nice profit in six months that I’m really proud of.
Why am I proud?
Because I am not a money person.
It was only a couple years ago that I was able to start saving for my retirement. However, I don’t know squat about stocks and I have no large assets besides two X-files Barbie dolls and more pillows than any human could possibly need.
When I decided to start investing in cryptocurrency I told myself three things:
1.) Don’t invest more than you can afford to lose
2.) Understand that the bubble could burst tomorrow
3.) Don’t get all weird and sell your two X-files Barbie dolls and blankets to fund your crypto habit
Because of these rules I haven’t made a killing this year, but I also haven’t been one giant stress ball because of it. If I was able to invest more, I would be sitting on a prettier nest egg, but I’m ok with that. I’M OK WITH THAT. I REALLY AM.
I suggested to my friend that he invest around the same time. He invested mid-four figures and he’s now well into a six-figure profit. He’s been much more riskier than I have, but it’s paid off. I’M SO PROUD OF MY FRIEND AND I HAVE NO ISSUES WITH HIS PROFITS WHATSOEVER. NONE. I’M TOTALLY OK WITH IT.
Now, some of you might be thinking Cyrptocurrency is a load of horse manure. I have some friends who think it’s stupid, and who knows? Maybe cryptocurrencies will all go away tomorrow. But I don’t think they will. Why? Because why not?
Why is it impossible to believe that digital currency could not be the way of the future?
Here are several reasons why cryptocurrency works & why it’s here to stay:
1.) It’s mostly anonymous (except for the info you give to the trading platforms).
2.) It’s peer-to-peer or decentralized, meaning the “banking” is done through the computer and not a bank or broker.
3.) It’s extremely useful during times of instability, like when Ethereum was used to aid Syrians, and like when we go to war with North Korea.
4.) Bitcoin was created in 2008 and here it is, almost ten years later, having gone from $.03 to almost $20,000 per share. (On 1/4/18 it’s currently trading in the mid-14,000s.)
5.) Hundreds if not thousands of companies accept Bitcoin as payment.
6.) Bitcoin futures trading started in December of 2017.
7.) More and more countries and banking institutions are taking cryptocurrency seriously.
And just to be fair…
There are several reasons why cryptocurrency isn’t a good idea:
1.) It’s extremely volatile. If you don’t like watching your investments bounce like Miley Cyrus’ butt during her twerking days, this is probably not for you.
2.) Because it’s peer-to-peer that means your money could get stolen or lost. It’s important that you store your cryptocurrencies on a reputable platform, such as Coinbase, or on your own digital wallet. (P.S. If you sign up for Coinbase, use my referral link!)
3.) If the banking system picks up cryptocurrencies it’s questionable what that will look like.
4.) It’s weird and it’s new and it could all go away tomorrow, maybe.
(Now, I’ve heard these crazy stories of people refinancing their houses or taking out loans to buy cryptocurrency. I don’t think this is a good idea. I’ve seen people take big risks and get big gains, but if you have spouse and kids, don’t be stupid. If you take out a loan and cryptos burst tomorrow, you’re up shit creek. Again, I would only invest what you’re not afraid to lose. You might not make huge gains, but at least your children won’t have to stare wide-eyed at strangers and say, “Please, sir. I want some more.”)
Ok, so let’s get to the part about why more millennials should invest.
It’s no secret that millennials are screwed financially. They’re saddled with college loan debt, their salaries are low and they may get reduced Social Security benefits in the future. Over 25% of people aged 25-29 live at home, while 13% of people aged 30-34 live with their folks as well. Millennials have got it rough, even if people like to call us whiny turds.
I grew up working class. My family was able to pay their bills, but we never had any money to spare. Investing was not something I was raised to do–it’s something I’ve had to figure out. For years investing didn’t seem possible when I was living paycheck to paycheck.
When I got out of debt, I made the decision to stop buying “stuff” and start setting a little money aside. It’s been one of the most rewarding feelings, and now adding cryptocurrency to my portfolio has amplified that.
If you’re a millennial wanting to invest, consider doing your research and looking into cryptocurrencies. Because of my modest cryptocurrency investment, I’ve been able to raise my overall life savings by 50%. I hope that entitlements like Medicare and Social Security will be there in the future, but I’m going to act like they’re not. I want to take my future into my own hands.
I’m now day trading and able to make a small daily profit in addition to the profit I made from last year’s big boom. It’s taken a lot of time for me to learn the ins and outs, but it’s been a fascinating and exciting experience.
Before you get started, here are some things you should know:
1.) These are the current top 10 cryptocurrencies people are buying and selling. Currently the top three are Bitcoin, Ripple and Ethereum.
2.) There are several exchanges to buy/sell on. Some work better than others. Coinbase, GDAX, Kraken, Binance and Bitstamp are a few to check out, with Coinbase being the most popular exchange. Here’s a helpful list of other cryptocurrency exchanges from BlockGeeks.
3.) No one really knows what’s going to happen to cryptocurrencies from day to day, but it is helpful to check crypto news daily. Doing a Google news search on cryptocurrency works best, but resources to check out include Coindesk, CCN, and CoinTelegraph.
3.) Top cryptocurrencies like Bitcoin and Ethereum are trading pretty high at $15,000 and $1,000 respectively. That doesn’t mean you can’t invest in smaller cryptos. Ripple is currently booming and it’s still trading at around $3.00 a share. Other smaller crypts to check out include Cardano, NEM and IOTA.
4.) Please, FOR THE LOVE OF GOD, be smart and safe. Don’t take out loans, zap your life savings or sell your prized X-files Barbie dolls to invest, and please make sure that you’re buying/selling on reputable exchanges.
If you have any questions or would like to add anything, please leave them in the comments below!