Although the collapse of bitcoin and the cryptocurrency market is normally accompanied by a decline in interest, the truth is that this is an excellent time to approach this world and prepare to invest; many people who, after hearing about it on TV or reading a newspaper article, ask me for information about this type of tools, believe they can get rich quickly, also because this is the perception that is gained through the media and through social media . Clearly, investing in crypto is not so different from investing in regulated markets, the only difference is that there are far fewer safeguards here and you have to be careful not to run into the typical scam, on the other hand, however, also the opportunities of profits are much higher, so let's try to understand together what is the best way to approach this market. The first thing to do is to study the technology, so those interested can download our ebook that illustrates in a simple way the basic concepts that allow a decentralized currency to function; this is fundamental because, otherwise, the stress in the periods in which the market turns down, without having built up a great trust in this technology, will induce to sell by consolidating heavy sales. For the rest, the watchword is to diversify, not only at the level of projects on which to invest but also at the level of strategies to be adopted; in this article I want to address just this aspect of the question, so I will not merely recommend the coins to buy but we will explore the different investment strategies together.

How much money to invest in cryptocurrencies

As probably most of those who read this post I also do not have immense capital to invest, and like me this is true for a large part of the community; even if we had so much money, it would not be a good idea to invest it in cryptocurrencies, as we said the word is to diversify. One of the first rules that you will find written everywhere is to never invest more money than we are willing to lose; the ideal, therefore, is to allocate small amounts of money, even just € 50 a month, to our investments. We will see in one of the next paragraphs when and how to buy, as well as, clearly, how to subdivide our capital, for now let us limit ourselves to saying precisely that what we have to do is set aside liquidity to invest and the best way to do it is through saving. Let's take examples so we can understand each other better; you have signed a new contract for home phones and your mobile phones, this allows you to save fifty euros a month, very well, pretend you haven't saved anything and put that cash aside. At the same time you have the habit of playing lotto, or buying scratch cards, leaving this bad habit and putting your money aside, you will use it to invest in cryptocurrencies; what you have to do is to consider that money as not yours, after all you spent it up to this moment, so even if you were to lose it you shouldn't even notice it. Obviously our goal is not to lose money, but to earn it, but on a psychological level to think that the money we are investing will end up losing it anyway is a great way to reduce stress; forget to invest cryptocurrencies with borrowed money, do not use money you may need or that may weigh on your balance sheet at the end of the month, better grow little by little, in a healthy way, than start immediately with big capital and not sleep in it the night.

Invest in cryptocurrencies with trading

We begin to go into the merits of the various strategies that we can put in place to earn money by investing in cryptocurrencies; trading is always fundamental, also because through this activity you learn to read the charts. The best approach when we talk about cryptocurrency trading is that of the drawer, which means that we will not do many small daily operations but we will simply try to buy as low as possible and then sell as high as possible. It is not infrequent that those who use this strategy find themselves doing no more than four or five operations a year, and that between one closure and another they find themselves facing even large losses in the event of a reading being wrong and a support being broken . Try to work only on those coins for which you are available to use a long-term approach, the famous HODL that we will talk about better in the next paragraph, so if things went too long you would move your coins to your private wallet and you would restore your trading account with new liquidity.

Invest in cryptocurrencies by doing HODL

He begins to enter the perspective of ideas that the most profitable investments are long-term ones, so let's talk about operations that can remain open for years; Warren Buffett, who understands about investments (despite being a major detractor of cryptocurrencies), says that if you are not willing to take an action for ten years then you shouldn't even take it for ten minutes. When we talk about doing HODL, then, let's talk about buying coins and keeping them in our private wallet for years; clearly the best currency ever to do HODL is bitcoin, but there are also other very solid projects for a long-term investment that can be worth investing in. The other thing to take into consideration is that you must always try to buy close to the lows, so you have to keep your liquidity aside until the right opportunity to buy at firm prices is presented; in the case of bitcoin, for example, the writer has always bought in a price range between $ 3000 and $ 5000. What we need to do, therefore, is to identify the most solid projects on which to invest, even among the altcoins, and trade only on those; in this way, even if a support breaks, sending us to a heavy loss, what we will do is move the coins out of the exchange, on our hardware wallet and thus flesh out the account for long-term investments. When we have new liquidity we will go again to allocate our money to trading, in the meantime we will have accumulated; consequently we will have a wallet hardware where capital will start to accumulate, if we allocate for example € 100 a month to the crypto already at the end of the first year we will have a thousand euros aside, even more if we have guessed the supports on which to go to buy. Since we said that diversification is important and that bitcoin is still the best currency to set aside liquidity, what we need to do is identify another five or six coins, no more, that can represent a good investment in a long-term perspective, to dedicate ourselves to the trading only on cryptocurrency ones and, if the media is broken, move that money to our hardware wallet. Some interesting coins for our strategy, besides bitcoins, can be decred, bat, ripple, waves, tron, ardr; on these coins, for example, we will go to work habitually, then obviously no one forbids us to buy even small capitalization crypts, always with a long-term view, but more occasionally. We say that our portfolio can be divided as follows: 40% in bitcoin, 50% on the altcoins we trust the most, 10% on real bets, coins that from here to ten years may not even exist anymore but that if the project were to take place they could give huge profits. To be clear, there are crypts around that are worth less than a penny today, but which could potentially be worth hundreds of dollars from here to ten years; most likely those coins in such a long time frame will almost inevitably end up failing, however putting up about twenty euros, really as if it were a bet, could give huge profits. Imagine that you bought, just as an example, $ 20 of bitcoin when it was worth just $ 1, today you would be very happy with that investment. Keep your eyes open on the market, therefore, always keep yourself informed, and don't be afraid to throw around twenty euros on a coin that teases your intuition; you will probably throw that money away, but there is also a small chance that those € 20 will prove to be the best investment of your life.

Invest in cryptocurrencies to earn an interest, the age of DeFi

They call it DeFi, which simply means "decentralized finance" is a new trend in the world of cryptocurrencies of which we have not yet dealt with on this site (we will do it in more depth in the coming weeks), for now we are mainly interested in one aspect of this world, that is, the possibility of earning interests from our deposits. Let's go in order, though, and let's first make a small summary of the current situation; we said that our operation consists in trading the cryptocurrencies we trust the most, which are the ones we will try to accumulate in a long-term perspective on our hardware wallet. Clearly our bitcoins we never want to change them, since we imagine that the price will continue to rise for a long time, maybe we will change a small part when it reaches the next historical maximum, but for now we limit ourselves to accumulate; then imagine having bought a hundred euros of DCR and that the chosen support has been broken, what we will do is move our coins on a wallet hardware and wait patiently. The following month we invest another 100 € in TRON and suppose that this time we have guessed our trade and that the currency on which we have invested has tripled its value in the following two months; what do we do with those profits? Do we spend them? It wouldn't make sense, we said that that money is basically useless. Do we deposit it on our hardware wallet after converting it to bitcoin? Well, this is definitely a good idea. However, there is a third way to deposit it on a platform that will give us a monthly interest in our deposits; for example, many platforms pay interest between 3% and 4.5% on bitcoin deposits, so not only will we earn when bitcoin grows, but we will also earn interest simply by keeping our bitcoins deposited. There are also coins that pay more, for example some stablecoin linked to the dollar offer interest of more than 8% per annum, not bad therefore; in the same way we suppose that after a year our DCRs, which meanwhile we had deposited on our personal wallet, finally take flight, reaching a new historical maximum. We then move them to the exchange and sell them, making a profit equal to 5 times our initial investment; so what do we do with that profit? Simple, in the meantime we can keep the initial € 100 on the exchange, so as to increase the capital of our trading portfolio, of the € 400 that remain € 250 we can redeposit them on our wallet after converting them to BTC (so as to continue to accumulate in a long-term perspective) and the other € 150 we deposit them on a platform that pays us interest, perhaps converting them into some stablecoin so as to have a higher yield and not having to worry about volatility.

Investing in cryptocurrencies, conclusion

Imagine we have invested € 100 a month for three years, if we have done things intelligently there are excellent chances that we will have succeeded even if we have achieved our investment twice and a half (potentially we could do much more, but let's keep low ). € 1200 a year (ie € 100 a month) in three years will become € 3600 which multiplied by 2.5 is € 9000. After another three years we will find our initial € 9000 plus another € 3600, which is € 12,600 which, multiplied by 2.5, is € 31,500. After another three years we will find our € 31500 plus € 3600, or € 35100, which multiplied again by 2.5 is € 87500. All this in just nine years; this is not, contrary to what it may seem, an overly optimistic reconstruction, in reality it is a fairly modest forecast, if you were to have talent for this kind of investment you might be able to re-evaluate your capital more than just 2.5 times every three years . Of course you could also end up losing everything or maybe finding yourself with the same money you left with, in this case you would have set aside € 10,800 in nine years of savings, as if you had put them in a piggy bank. All this with just € 100 savings a month, I think it might be worth trying, in the worst case scenario, even if you lose everything, there would be nothing to tear your hair off, we immediately said that setting aside that money shouldn't weigh you down, at best you may be able to change your life.