You have seen your friends and family investing in crypto and making millions of dollars overnight.
Carl Runefelt is a billionaire under 30. There was a time when he was stuck in a 9 to 5 grocery store job. Today he is a social icon and global crypto leader who regularly invests in crypto and NFTs. In a nutshell, crypto changed his life overnight.
Carl says, “If you want to make money through crypto, the easiest way is to buy at a low price and sell when it is high. Also, you can intelligently take advantage of massive volatility and volume.”
These massive returns can make you rush and want to jump into crypto. But hold on.
Even though investing in crypto is a cakewalk, there are factors you should take care of before making an investment. These factors are your finances and fiscal learning before pouring in your money.
Let’s uncover a few of them.
Safeguard Your Finances
It is often said to hope for the best but prepare for the worst. This means when investing in crypto, you have to be ready if things go south.
Due to the global pandemic, thousands of workers lost their lives; businesses even refused to accept their debit cards. Numerous lost their jobs.
Such a crisis gives us a stark reminder of how crucial it is for us to have an emergency fund.
It is a good idea to keep at least six months of savings. At the same time, never invest all your money in crypto. If you are doing 9 to 5 job, you should invest a few hundred dollars into crypto on every paycheck.
Carl Runefelt says, “If you are working a nine-to-five job and you only make like $2,000 a month, I would say at least put a few hundred dollars every month into Bitcoin and keep accumulating weekly or monthly; that’s exactly what I was doing back a few years ago when I was working in a grocery store.”
Also, make sure to review your insurance coverage before diving into crypto investments. It’s always a good idea to be vigilant.
Save and Invest Together
Once you have sorted out your emergency funds, now you should start planning your short-term and long-term financial goals. These goals will be your savings goals as well.
It is an excellent idea to invest with a bullish approach when investing in crypto. It is when the price dips, buy and when it shoots, sell.
Carl Runefelt says on his YouTube channel, The Moon, “Bitcoin and for all coins, I like to accumulate at lower levels. So, right now when everything is silent and chilled and going down, I am happily accumulating in peace. Every single altcoin out there has been going down like crazy in the last three months, and in my opinion that is a fantastic opportunity to pick up some cheap prices because, in the next bull run, you will be the winner if you bought when everyone else was not buying.”
When it comes to savings, calculate how much you should save monthly from your salary to make a house or to get married in ten years. Often it is recommended to save around a thousand dollars each month.
Get Educated About Cryptocurrency
Getting into something without having the proper knowledge is a perfect recipe for failure.
Here’s the thing; you have the cash to invest but have zero to no knowledge about making money through crypto. Seriously?!
If you want to invest in crypto, you have to dedicate a lot of time to learning crypto. Learn the mechanics, style of investing, and, fundamentally, all the nuts and bolts.
Once you educate yourself, only then you will be able to analyze:
- Is this investment for you?
- What will be your method of investment?
- What goals do you have?
- How do you plan on educating your family on accessing it later?
Remember, it is wise to make a diligent effort to learn everything about it before throwing in your cash.
Managing Finances is the Key to Crypto Investments
Though crypto investments have the potential to quadruple your money in days, getting into the battlefield without your armor can be disastrous for you.
Before you buy your first crypto, make sure to plan and review your finances, emergency funds, savings, and risk appetite.