Tell the truth: you've been wondering how to invest in cryptocurrencies for a long time, you see people making a lot of money from emerging cryptocurrencies every day, but you have no idea how to get started. If that's what you're wondering, then you've come to the right place.

We started out just like you: a burning desire to do more, a huge desire to secure an income outside of our traditional jobs, and the possibility of achieving financial freedom or otherwise remarkable results. We've been hanging out in this market for about 8 years, but now we want to share our experiences with YOU.

This is the first article we publish on our website, where we want to teach people not only how to buy cryptocurrency, how to hold it and how to profit from it, but also how to manage their money in a smart way.

In fact, there are so many individuals who, for one reason or another, end up running out of money not so much because of their salary, but because they do not know how to manage it by optimizing the outputs. It's enough to drink a few less coffees at the bar, to give up some vices such as smoking or alcohol or, simply, to move part of their income elsewhere to "not see them", but we will talk about this later.

Today, we will only focus on how to invest in emerging cryptocurrencies in 2022 using the best tools that the magical world of the Internet provides us with. First, however, let's make some more than important premises that will help us determine how many cryptocurrencies to buy and which ones to hold.

How to invest in cryptocurrencies? By establishing a time period, first of all

The cryptocurrency market is without a shadow of a doubt the most volatile market ever. If the rise and fall of the order of 1, 2 or 5% of traditional stocks scares you, it's best to leave it alone. A token, especially if it is an emerging token, can have swings of 20, 50 or even 80% even within 24 hours.

Let's take as an example a token that, unfortunately, is on everyone's lips: SHIBA INU. This, leaving aside its mind-blowing temporal rise, has experienced periods of remarkable volatility with dumps (sudden descent) of over -35%. As a result, cryptocurrencies are seen as a high-risk product.

So, figure out how long you want to devote your money to investments (if under 6 months, avoid doing so, you'd end up losing money for sure).

Short, medium or long term?

Usually, time periods are diversified into short, medium and long term.

• Short: from 1 to 2 years
• Medium: from 2 to 5 years
• Long: from 5 years and up

There are those who also invest for periods of less than one year. Often, those who do it, do it only as a test, and exit the market with more or less high gains that are based in most cases on luck or purely speculative strategies.

If, on the other hand, you firmly believe in an emerging cryptocurrency such as, for example, Earth (MOON), the base investment should be at least one year. Those who bought the aforementioned token at $1, in fact, found themselves after about 1 year with a 17-fold return on their initial investment.

If you think about the results of those who waited longer, with the $LUNA token touching $100 at the end of 2021, instead, the result is considerably higher. Obviously, we are not talking about mathematical rules, but statistics, which can vary depending on today's market.

Money: how much to invest in cryptocurrencies?

We are talking about how to invest in emerging cryptocurrencies, but obviously missing an important issue: how much to invest?

If you have doubts or you don't know for sure how much money to put at risk, read our article on accumulation plans, one of the best medium-long term strategies to not expose yourself too quickly to the market.

In this way, you'll avoid taking too much money out of your paycheck, and you'll enter in stages managing to mediate the purchase price. Long story short, today you buy $100 worth of Bitcoin at a price of $50,000, a month from now you will buy another $100 worth at a price of $45,000. The average purchase price will be $47,500.

This is the simplest way to understand the accumulation plan (PAC).

Diversify? Yes, but...

The great Warren Buffet used to say that the first rule of an investor is to not lose money, and it's so true!

In light of this, it's up to you to diversify your portfolio to bring yourself to an adequate margin of safety. However, too much is too much, so avoid buying $10 of every coin you find on Binance, as you will end up exposing yourself to the whole market, minimizing your losses but also your gains.

So, the question you should ask yourself is: how much do I want to risk from 1 to 60?

In this case, the number 60 according to Graham equals the amount of total shares you need to hold in order to limit your risk as much as possible.

Asset allocation

This is just a quick primer, take it as personal advice.

Emerging cryptocurrencies, but also historical assets like Bitcoin, are very volatile, and although many (including us) believe in them blindly, we must protect ourselves. It is good, therefore, to hold not only BTC, but also Altcoins, alternative coins to Bitcoin that often outperform the market.

Now that we have made our premises, then, let's try to understand how to invest in emerging cryptocurrencies. The initial problem, to begin with, lies in where to find new cryptocurrencies.

How to invest in emerging cryptocurrencies and where to find them

The best strategy for finding new cryptocurrencies is without a doubt to go to Coinmarketcap.com. Just go to the Recently Added section and you will find plenty of tokens to study.

Go to Coinmarketcap is an excellent shortcut, because in most cases these are virtual coins already certified and not fraudulent. In fact, it happens very often to find Discord or Telegram channels where they are sponsored new tokens that turn out to be real scams.

To get around this problem, I recommend you to follow these steps. On the other hand, often you may find the new gem of the moment, and the latter may not yet be listed on Coinmarketcap.

Step-by-step guide

These are the steps we at GoInvest try to follow when we want to invest in new cryptocurrencies:

• We note everything we find on Telegram, Discord, etc.
• We use Tokensniffer to make sure it's not rugpull (in short, a scam).
• We check BSCscan and see who the top coin holders are. If the developers are on top and don't have a lockout period, we move on.
• We go to PooCoin and use the "Rug Check" function, making sure that the first holder is not a user with too many tokens compared to the total
• supply.
• We check any listings on Coinmarketcap, Coingecko or any exchanges.
• We try to talk to other community members, developers or admins if possible.
• If the team is not anonymous and has their tokens locked, that's a good sign.
• If the project is solving a real problem (e.g., minimizing fees or increasing transaction speed), it could have strong appreciation over time.
• Finally, let's look at total supply and market cap. An MCAP around $5,000,000-$10,000,000 is usually the most recommended to see good upside over time.

Conclusioni

We have seen that it is not so complicated to understand how to invest in emerging cryptocurrencies, even if you start from scratch. You just need to understand the existence of certain tools and mechanisms, always trying to adjust with the risk factor.

That said, we invite you to keep up to date by reading the guides and tips that we will constantly publish on our site!

The original version of this article is published here. I also published an Italian version here on publish0x!

**This article was written by the GoInvest team. Each guide is for informational purposes only and does not suggests any form of investment or savings plan or, much less, financial advice. You can read our official articles in our website.