You might have experience with traditional investment assets such as equities, real estate, or bonds. And you have been investing for quite some years. Or even better, you are a professional investment advisor.

 In our recent Fast Track YouTube live, I invited Peter Saddington to be our guest, famous for buying a Lamborghini with 45 bitcoins in 2017. He started a blockchain tech company Emrit, which does global hotspot hardware drop for the Helium network. With the hotspot, you can use your Wi-Fi at home to earn Helium Tokens.

Matthias Richter, my co-host of the weekly Fast Track Money YouTube live, is famous for being millionaires’ advisor. He helped hundreds of wealthy people with advising, investing, and financial planning. He has been involved in the traditional finance world for more than a decade. Being an avid investor himself, he knows all sorts of financial assets, but he does not own any cryptocurrencies.

In the YouTube live, I asked them about what types of investment assets they own. Interestingly, Peter owns 0 equities, Matthias owns 0 cryptocurrencies. But they both own real estate. When it comes to investment philosophy, they share the same view. If you want to get started with crypto investing, you need to follow those three principles:

Principle 1: Never use your bread money.

Do not invest what you cannot afford to lose. With any type of investment, it comes risks. Some have lower risks, such as bonds, some have higher risks, such as cryptocurrencies. If you just get started or plan to get started to invest in cryptocurrency, start small. Do not invest the money that is used to support your life.

Most people think they have to buy one bitcoin or 1 Ether. No, you don’t! You can buy a small fraction of cryptocurrency, which can be $100 or even $10. Start small, get yourself used to the market movement, and then learn more about each project, the token economics behind it. You can slowly increase your investment amount if you want to.

Principle 2: Align your value with your investment.

One big reason that Peter pulled out all his money from stock markets and invested in cryptocurrencies years ago was that he firmly believed in the future of blockchain.

One big reason that Matthias invested in ARKX, an ETF that focuses on space exploration & innovation because he believes that the technology will advance, and space exploration will continue to uncover its potentials.

You don’t need to listen to others and decide what you invest in. Based on your value and interest, you can discover so many investment opportunities aligned with what you believe in.

Even though many might have been lucky and made big bucks from some random cryptocurrencies, you don’t have to follow them even if you don’t understand them, nor does it align with your values.

Principle 3: Core-Satellite Strategy

Matthias introduced this concept in the video. Core means the primary investment that will help you fulfill your financial goal with great confidence. It could be a proven asset that has more than 100 years of history, and you know if you keep investing, you have a high chance to get your expected return. The majority of your investment should be in the Core.

Satellite means a tactic investment that you do one time, and you let it perform on its own. With the Core, you might do dollar-cost-averaging and invest every month for the long term to diversity the risks. With satellite investment, you can invest once and let it be. It can be an opportunity that you observe in the market. Or it can be something new, and you want to try it out but don’t have great confidence with the performance yet. If you are not a seasoned cryptocurrency investor, you might treat the crypto investment as your Satellite. But for experienced crypto investors might even do it with the dollar-cost-averaging method.

It is essential to know what is your Core and what is your Satellite. And don’t mess the investing strategy with those two.

Once you have fully understood the three principles and you decided that you want to buy some cryptos. Here is what you should do:

Step 1: you can start by researching different cryptos. You might want to start with more matured ones such as Bitcoin or Ethereum or the top 15 cryptos from Coinmarketcap. It is easy to get lost in thousands of cryptos and get trapped into the high-performing ones based on historical charts. The market moves every day, probably 10 or 20 times more fluctuating than stocks. And many altcoins’ prices correlate with bitcoin prices. If you have few cryptos that move follow the bitcoin price, your portfolio will fluctuate hugely.

Generally, the top 15 cryptos would be a good start to do your research. Those projects have survived long enough and grown a big community and ecosystem, where DApps are built on top. Smaller projects are still in development.

Step 2: open a crypto exchange account. There are many to choose from. It depends on where you are located; some are more convenient than others. You can check out Kraken, Binance, or Coinbase. Typically the biggest crypto exchanges have more cryptos listed, offer staking options, and more liquidity. So you can buy and sell instantly with hundreds of investment options to choose from. Even better, with staking, you can earn passive income with your cryptos.

Step3: once your account is ready and you have transferred some money to it and buy the cryptos. Remember, you don’t have to buy one whole coin. You can buy a small fraction of it. If you want to buy Bitcoins, you can buy 0.00000001 bitcoin as a minimal amount. How amazing is that! However, you have to pay attention to transaction fees, which are not so small when the crypto price is high.

Step4: HODL.

Keep your coins; let it perform. The price might go up and down every day, and it can drop 20% or increase by 50%. Everything is possible with cryptocurrency prices. You need to remove your judgment from on equity market. Those two are entirely different. Now you may start reading about the projects you invested in, join a telegram group chat, and exchange information with others. From there, you will learn more about cryptocurrencies and your investing behavior.

I know a friend who bought a tiny little bit of bitcoin at the end of 2020 when the price was just about $10,000 per bitcoin. He sold it when he made a 20% profit. Because 20% is a HUGE profit in his judgment, this judgment is based on his comparison with the equity market or real estate. However, if he would have kept it, it would be a 500% profit.

Conclusion

Conclusion paragraph:  You don’t need to be an expert in cryptocurrency investing, but you should know a few basics and follow some essential principles. The Fast Track Money Course will teach you everything you need to start saving money, earning more money, and how to invest your savings for the future. Sign up today or book a free 30 minutes call with us!