Investments in cryptocurrency for a long time do not let you sleep well? We will tell you the secret: you can become a millionaire too by investing only $1000 at the beginning. Cryptocurrency – how to start earning and what is needed for this? We will answer these questions in the guide for beginners.

What will you learn from this article?

  1. In what cryptocurrency to invest in 2018 – traders secrets.

How to distribute the budget for cryptocurrencies – nuances.

How much can you earn by investing $ 1000 in cryptocurrency?

How not to be left with nothing – the pitfalls of investment in the cryptocurrency.

How to trade cryptocurrency on the exchange with minimal risks?

In what cryptocurrency to invest in 2018 – traders secrets.

We have written about cryptocurrencies can grow 100 times; however, if you are a beginner, first, we recommend that you pay attention to top-level cryptocurrencies. This is a more reliable way to multiply your capital.

Top 100 Cryptocurrencies by Market Capitalization

It is worth remembering that large-capped currencies are more long-term investments than a way to quickly make X10. Nevertheless, the public interest in cryptocurrency allows you to make good money on the difference in rates. You can buy currency on exchanges, read more in the article.

So, what cryptocurrency from the top to invest for beginner?

Ethereum

Or Ether for two years the price has raised 40 times. Interest in currency is due to the convenient technology of blockchain, which allows you to create applications based on it, honest online casinos and bookmakers, currency exchangers, crowdfunding platforms. The main advantage is that the projects work without the third parties, excluding the possibility for the creators to get profit and disappear with money. It won’t not give x10 even in the long run, however, it shows a small and stable growth throughout its existence.

Ethereum

Monero

Exposing the bitcoin wallet means the ability to track absolutely all the transactions on it, but it is impossible to do this with Monero. The currency, unlike bitcoin, is completely anonymous. Transactions are mixed with each other, as a result you can understand from where and how much money has come. Due to high demand on the black market, capitalization has grown to 1/100 bitcoin. Today, it is one of the most promising cryptocurrency, worth buying.

Monero

Litecoin

To date, the sixth by the capitalization cryptocurrency, considered digital silver. In many ways, the currency is similar to bitcoin with the difference in improved technologies and corrected errors. This makes Lightcoin one of the main competitors of bitcoin. According to forecasts, the currency can grow from $ 121 to $ 1,000 by the end of 2018. On pumps, on average, gives x5.

Litecoin

NEO

One of the strongest market players, the main competitor of Ether. It is a platform for creating smart contracts and conducting ICO. The NEO blockchain distinguish itself from Ether by the possibility to create smart contracts not only in Solidity, but also in more common Java, Python, Microsoft.net, Kotlin, Go.The price growth is caused by the interest of the largest IT companies in the blockchain and a limited number of coins.

NEO

Stellar

Decentralized platform for exchanging crypto and fiat. Benefits include open code, high speed of operations, synchronization with banking systems, platform reliability due to synchronization. Ripple’s main competitor, thanks to decentralization. Suitable for a small initial investment. Good prospects for long-term.

Bitcoin is not on this list for a reason, in the last few months is experiencing a serious correction. Experts predict this situation lasts from several months to several years. Therefore, if you buy bitcoins in the first stages, then forget about them for 5-10 years and try not to track the charts so as not to worry.

Stellar

How to distribute the budget for cryptocurrencies – nuances.

If you are a beginner, it’s unlikely that you will have a decent amount to start earning money right away. In the initial stages, you can start with a small amount of $ 1000. The amount is the minimum threshold, because many top currencies from which you can start trading on exchanges are expensive. For example, Ether has already reached $ 600 in 2018.

For easy calculations, let’s distribute the budget equally among the currencies we have chosen above.

That is, at the current rate, you can create the following newbie crypto portfolio:

  • Ethereum (the price at the moment is around $600), buying with $200 – outcome around 0,3 ETH.
  • Monero (the price at the moment is around $160), buying with $200 – outcome around 1,2 XMR.
  • Litecoin (the price at the moment is around $120), buy with $200 – outcome around 1,6 LTC.
  • NEO (the price at the moment is around $54), buying with $200 – outcome around 3,7 NEO.
  • Stellar (the price at the moment is around $0,3), buying with $200 – outcome around 666,6 XLM.

At the beginning of the investor’s way, we recommend that you allocate the budget equally among top cryptocurrencies. This will help you in calculating the income from each investment and acquiring the necessary experience in how to distribute funds in the future.

Experts, however, recommend distributing the budget in this way:

  • 80% of the money to invest in reliable currencies with large capitalization.
  • 15% to invest in promising cryptocurrencies, which become popular.
  • 5% in inexpensive projects with good potential.

This strategy is suitable for prudent and cautious investors and traders.

If you are risky, then you can do this:

  • 60% to invest in crypto giants.
  • 25% – in alternative coins.
  • 15% to invest in ICO.

NB ICO can give x100, x1000, but it is much more likely to go broke.

How much can you earn by investing $ 1000 in cryptocurrency?

Crypto portfolio is made up; it’s time to calculate the approximate profit from your investments.

How much is it possible to earn on cryptocurrency?

For example, let’s take the year 2018 and the experts’ forecasts for growth of the cryptocurrency.

Ethereum can grow to $ 3000, that is, x5 (the most optimistic forecast), Monero – to $ 450 – j x3.7, Litecoin can grow to $ 1000 – x8.3, NEO – up to $ 300 – x5.5, Stellar – to $ 1, then there is x3.

Thus we obtain:

0,3 ETH*5+1,2 XMR*3,7+1,6 LTC*8,3+3,7 NEO*5,5+666,6 XLM*3=$5100

That means, for a few months in 2018, it is possible to make more than $ 5,000 from $ 1,000, if the most optimistic forecasts for selected cryptocurrencies are realized.

How not to be left with nothing – the pitfalls of investment in the cryptocurrency

Remember that you need to invest only the money that you are not afraid to lose. You cannot invest borrowed, credit or last money. Investments in cryptocurrency are considered to be among the most high-risk ones.

Do not forget about the huge amount of hacker attacks on exchanges and crypto wallets, even the largest exchanges announce a scam because of the consequences of such actions. One of the most prime examples is the recent scam of the large BTC exchange, where users could not withdraw tens of thousands of dollars in cryptocurrency.

The authorities still do not understand how to regulate this market. At any time your country can prohibit the cryptocurrency. And you do not just lose money, but also break the law.

The largest payment systems like Western Union block accounts when they notice transfers to and from crypto exchanges.

Pumps (artificial increase in the crypto price) and dumps (artificial reduction of the crypto price) are very often the causes of the loss of money by newcomers. Therefore, in case of the charts spiked do not try to immediately buy or get rid of the currency, just wait.

Forewarned is forearmed.

Now that all the risks are known, and you are still attracted to earnings on the cryptocurrency, we will move from investing to the most profitable type of earnings in cryptocurrency – trading.

Investments in cryptocurrency

How to trade cryptocurrency on the exchange with minimal risks?

How can I earn money on cryptocurrency? Make money on the difference in the exchange rate, trading with currency pairs on various exchanges. Trading on exchanges is very broad subject, therefore within this article we will go through the basic principles for beginners.

There are a few trading strategies, beginners are recommended to start with the simplest DOM trading. You can earn a little, but the chances of losing a minimum.

Depth of market is the list of orders to buy and to sell currency pairs, which displays the number of bids above and below the market average price. Traders earn on the spread – the difference between the offers of buying and selling, and “scalping” means buying and selling at the edge of the rates.

The picture shows an order book for the pair ETH / USD, where the best offers for each type of orders are on top. It is better to choose a pair in which the price difference is more than 1%, then it will be possible to earn on it even with commission. In this case, the difference is only 0.17% (598/597 * 100-100≈0.17%). Profit is less than the commission.

Investments in cryptocurrency

Let’s take another pair of HBZ / ETH (helbiz / ether) as an example. The difference is 0.00002099 / 0.00002066 * 100-100≈1.60%. That is, for earnings on the difference, we buy and sell on the upper limits. At the same time, as can be seen from the example, it is more profitable to trade currency pairs based on altcoins, and not on fiats (rubles, dollars, euros).

Investments in cryptocurrency

It is not difficult to understand how to correctly trade a cryptocurrency on the exchange, experience and knowledge of the basic mechanisms of trading are important. The first steps are best done with minimal amounts, in order to understand the technique, get used to the exchange and master the mechanisms of the formation of price and earnings.

Which exchange does a newcomer choose?

There is a rating of large exchanges, which is formed on the basis of trading volumes, reliability, commission fee and reviews of traders. At the same time, not a single exchange is safe from scam, it must be remembered. For a beginner to understand how to make money from nothing, we recommend that you check the most popular exchanges:

Conclusion

So, for a newcomer to invest in a cryptocurrency, it is needed to:

  • understand all risks associated with investing in cryptocurrency;
  • have a minimum budget of $1,000, which you won’t feel bad to lose;
  • form a cryptocurrency portfolio of top and reliable currencies;
  • register on the top market exchange and master the technique “on the edge of the glass.”

Once the first trading skills on the exchange are consolidated, you can move to more sophisticated techniques, such as the “Japanese candlestick”. We recommend leaving some of the currencies in your wallets as long-term investments.

Learn more about our approaches and principles, interesting and relevant topics about Bitcoin, Cryptocurrency, ICO

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