How To Get Rich In Crypto, Part 1

Now that my click-bait title has gotten your attention, here's the TL;DR version:

Think like an investor, not a gambler.

Here's the longer version.

Hopefully you'll get something new out of this.

Before buying a(nother) satoshi, ask yourself, "Do I really know and understand what cryptocurrency is trying to disrupt?"

Here's a fantastic video series that talks about the banking system of England
TL;DW(atch) version: Banks create money whenever they feel like it. And we all go into debt.

Here's a wonderful, thorough video of how blockchain works
TL;DW version: Every transaction is encrypted on a public ledger so no one can steal.

Put two and two together, and voila! The magic of blockchain - no more banks and their silly games, and you don't need to trust anyone to make sure you get paid/don't get stolen from. (Just FYI, I do not own the rights to those videos.)

Now that you understand the fundamentals of this market, you can readily see why claims of Bitcoin failures from prominent figures in the banking industry are complete FUD (and probably market manipulation, so they can get in for cheap).

In fact, here's a link to one of my favorite websites - Bitcoin Obituaries: https://99bitcoins.com/bitcoinobituaries/

Anyway... as an investor, you have some tools at your disposal:

1. Fundamental Analysis
2. Technical Analysis
3. The news
4. Buying and selling plans.

Fundamental analysis about doing research on the coin and what it actually is trying to do, who the team is and what they've done in the past, and looking up the financials such as the current market cap, competition, etc. etc. In short, doing very thorough research, especially when investing in ICOs.

I also think that investing in the more innovative blockchain technology than just the next "Bitcoin killer/replacement" is very wise for long term holding, as practical usage will likely dominate over the simply financial-based blockchains in the years to come. We all want our coins to moon tomorrow, but it took Bitcoin nine years to get to where it's at, and we all know that those who held since the early years are enjoying their lambos and cliffside mansions today.

Technical analysis is about reading charts to figure out what the coin might do as far as it's price is concerned. Frankly, many liken it to reading tea leaves or rubbing a crystal ball, but I think knowing some can be wise to help develop good trading patterns. I won't discuss any preferred methods or indicators... that's like opening Pandora's box and finding out its full of starved lions and you're wearing a suit of bacon. Just YouTube it, and know that you don't need to limit your technical analysis searches to only the cryptocurrency markets.

The news is your best... worst... that rejected... it's just.... ugh. A sort of backwards compass. It controls the markets, and it doesn't matter if it's accurate or not. This is where the phrase "play the players, not the game" works. Certain news, like the silly, unending rumor that Coinbase will be adding Ripple to their selection, has caused Ripple to rise a few times. Completely ungrounded rumor, as Coinbase has refuted said claim a few times now, but that didn't matter. XRP fans are passionate.

When JP Morgan spoke against crypto last year, it caused a drop. When Bill Gates said Bitcoin killed people about a week or so ago, no one flinched. So the news and its impact changes, and you just gotta keep your finger on the pulse. Check out CryptoPanic.

Remember to think globally, especially news from China, Korea, and the US. If China cracks down (for the 8 billionth time) on cryptocurrency, trying to stop the miner power supply, banning ICOs, etc. etc., it's going to hurt the market. If Korea says XYZ, that'll disrupt market pricing also. Bitcoin jumped in value after the US Commodity Futures Trading Comission and the Securities Exchange Commission basically said, "We like crypto". Japan's Coincheck exchange got hacked a couple weeks ago, and that hurt the market as well.

Buying and selling plans are extremely necessary to have. Everyone says buy the dip, fewer people seem to say take profits. Always do both, just figure out how often. Every coin worth its satoshi will rise and fall, like a wave. They can keep trending upwards, but if you want to maximize your holdings, then recognize when it's going to dip, even as it rises. This is where technical analysis can help... but even if you don't want to learn TA, I can basically guarantee this trading pattern:

If the price suddenly rises, it will also correct itself soon and subsequently fall... and then bounce up about 20% of it's initial rise, and then fall again, and then probably go sideways (flat-line) for a while. This is usually at least 10-15% higher than the initial rise, so if you missed the big event, you can still come out with some profit. Occasionally, a coin will start to rise again... but sometimes, especially on smaller alt coins, the price will take months to get back up (assuming there isn't a breaking news story). I'm tempted to make a jab at Tron...

Final note: Google (or DuckDuckGo on the Tor Browser) is your best friend. Do too much research. Fact check like crazy. Take my opinions and weigh them against others. Make an informed decision, and be flexible with your plans. Cryptocurrency is crazy volatile, but that's how you can make money.

Final final note: always keep your long term holdings on your own wallet, as everyone says. What they don't say is that you could just buy a cheap Android phone (like $20) instead of a Trezor or Ledger Nano. Get wallets like Bread, Coinomi, Eidoo, etc, and then keep your coins on there. And then turn the phone off. Mic drop.

How To Get Rich in Crypto, Part 2 - Dividends and Mining - Coming Soon

Disclaimer, I'm not a financial advisor, this is only my opinion, blah blah blah don't sue me. And ALWAYS do your own research.