"This guy is a Dogecoin Millionaire and he's not selling anytime soon."
I saw an article go viral the other day about a gentleman who apparently made millions from Dogecoin (in unrealized gains since he hasn't sold it yet).
You're going to hear more stories like this as investing in cryptocurrency becomes more popular. You likely want to know how to make money with cryptocurrency.
We're going to look at what you need to know before you invest your money into Dogecoin or any other form of cryptocurrency.
I need you to read this before you put your life savings in Dogecoin or any other coin out there in hopes of getting rich from the cryptocurrency market...
Social media is suddenly filled with success stories of people who are getting rich quickly from cryptocurrency. When you see a story like this, you start to look at how to get into cryptocurrency.
Here's what I need you to take care of first so that you don't go broke trying to get rich quick with different strategies for how to make money with cryptocurrency...
Focus on saving your money as you look at how to get into cryptocurrency
The most important thing when it comes to investing money is to ensure that you have money to invest in the first place.
How do you save money so that you have money to invest in cryptocurrency?
- Look at your fixed expenses to see if you can cut anything out or make some changes (this includes your rent, cell phone bill and anything that you pay every single month).
- Go over your variable expenses to find any holes in your spending. Do you have any problem areas? Are there any areas that you can improve on so that you can save more money?
- You automate the process. Pay yourself first by setting up automatic withdrawals from every paycheck. I suggest that you set it and forget it so that you don't have to think about saving money (I call this the Houdini System).
- Keep on building and saving until you have enough money to start investing (this will depend on what kind of investment strategy you choose to get into).
Focus on saving money so that you have money to invest. Then there's one important thing that you must know about investing in cryptocurrency.
FOMO is real when it comes to making money with cryptocurrency.
Have you heard of the fear of missing out? According to Wikipedia, FOMO is:
"FOMO is defined as a fear of regret, which may lead to concerns that one might miss an opportunity for social interaction, a novel experience, a memorable event or a profitable investment. It is the fear that deciding not to participate is the wrong choice."
When trying to make money with cryptocurrency, FOMO is real because there will ALWAYS be a better investment. You could double your money overnight and then find out that someone still had better returns somehow (crazy stuff happens in the cryptocurrency investing world).
Here are a few things to think about when FOMO starts to kick in with cryptocurrency:
- Do you have the money to risk?
- Is the risk really worth it?
- What if you lost your hard-earned money?
- Do you trust the person sharing the financial advice with you?
- Can you walk away from the laptop or your phone right now?
Sometimes the best investment is the one that you don't make. FOMO can kick in at any point in the cryptocurrency space or in any investing community.
Then it's time to move on to the next point that I alluded to earlier.
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Work on increasing your incomes so that you can make more money.
Trying to make 500% returns on a coin is exciting. Learning a new skill that will make you more money for the rest of your life will provide greater returns.
How do you increase your income?
- Look into side hustles. Is there anything that you could do on the side to make more money? We've discussed side hustles that lead to more money.
- Pick up more hours or look for ways to make more money at your company. Can you take a course to make more money? Can you find ways to land a new gig in the same company? Are you up for a raise any time soon? It's important to look for ways to make more money at your current gig.
- Upgrade your skills. Could you learn a new skill (copywriting, editing, etc.) or consider upgrading your current skillset to make more money?
- Sell your junk/stuff for money. Did you know that you could put your stuff up for sale on Kijiji or Facebook Marketplace? It's worth making a few extra bucks to have someone come and pick up the stuff that you don't want anymore. I recently had someone buy an old mattress that I was planning on throwing out. They came to pick it up and paid me $90.
The goal is to find a way to increase your income so that you can bring in more money. When you have more money, you can invest more into cryptocurrency. Then you can hopefully make money with cryptocurrency.
Try to learn more about the cryptocurrency market.
Do you understand how cryptocurrency works? Are you confused about how to get into cryptocurrency?
I didn't invest into cryptocurrency when I first heard about it because I simply didn't understand what this space was about. I couldn't explain what I was putting my money into so I couldn't justify investing in cryptocurrency.
They say that you should invest in what you know. So what this means is that you should take the time to learn about the market. I didn't start researching cryptocurrency until I couldn't ignore it any longer. Then I did my best to learn everything that I possibly could on the topic so that I was familiar with it.
I still don't understand how cryptocurrency works fully and I'm not really sure if anyone understands this space completely. I was just happy to see that I could easily purchase different forms of cryptocurrency online.
Luckily, many investing platforms started offering cryptocurrency and they even started to explain the cryptocurrency space. Check out our Wealthsimple review.
Look into what cryptocurrency to buy.
When you start looking at how to get into cryptocurrency, you'll discover that there's more to cryptocurrency than just purchasing Bitcoin. There are many different coins and exchanges where you can get involved in the cryptocurrency space.
How do you look into which cryptocurrency to purchase?
- Look into what the different coins are about.
- Do some research (look at the history of the token and the management team).
- Look at prices and trends over time.
I became a fan of Ripple (XRP) when I first started investing into cryptocurrency. Over time, I looked into different coins based on recommendations from friends who are in the space.
What's the best cryptocurrency to buy?
You can't go wrong with Bitcoin or Ethereum if you're just starting out with investing in cryptocurrency. Then you can take a look at Cardano (ADR) and other coins.
Once again, this isn't financial advice. By the time you read this article, there's no telling where any of these projects will be.
Watch out for the cryptocurrency rollercoaster when trying to make money with cryptocurrency.
You should expect volatility when you start to invest in cryptocurrency. The cryptocurrency market also never stops. As in the market is always open. You could potentially see major swings on a random Saturday night or when you least expect it.
I've learned to know when to walk away from your cryptocurrency investments because checking every few hours isn't good for the anxiety levels.
When it comes to Dogecoin, things are very unpredictable. I see new articles popping up daily from both sides of the spectrum. There are people mocking Dogecoin while others are praising it as the best possible investment out there.
Look out for celebrity endorsements in the cryptocurrency space.
These days, many celebrities are getting in on the cryptocurrency investing space because there's so much money to be made. This means that you're going to hear about many new tokens and forms of cryptocurrency popping up.
For example, Kim Kardashian posted a cryptocurrency ad to 250 million Instagram followers about Ethereum Max. According to the aforementioned article:
"The hype around [cryptocurrencies] generates a powerful fear of missing out from some consumers who may have little understanding of their risks."
Ethereum Max has nothing to do with Ethereum in case you're wondering. For someone who's in the cryptocurrency investing space, this may seem obvious. For a rookie cryptocurrency investor, this may actually seem like a legitimate investment.
I'm not saying that it's a scam, it's just interesting to note that celebrities often promote products that they may not fully believe in for the pay day. Would you buy shares in a company based on a celebrity endorsement on social media?
What this means for you, is that you have to decide early on what kind of cryptocurrency investor you want to be.
Will you buy and hold or will you look for risky coins?
On that note...
Invest money that you can afford to lose into riskier investments.
The cryptocurrency market is all over the map. If you look at a chart from any month, you'll be surprised by how volatile the space is. If you look at a three-month chart, you may see a legitimate rollercoaster.
What this means is that you may lose all of your money if you invest into a risky coin. I just don't want you to risk money that you can't afford to lose when you try to make money with cryptoccurency.
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That's what you have to know before putting your life savings on Dogecoin or before you start investing into cryptocurrency.
Good luck with trying to make money with cryptocurrency. Please don't feel like you have to risk your life savings on a meme coin or something that you don't understand at all.