A quick guide to invest in cryptocurrencies

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3 simple steps:

1. Invest in projects you believe in for the long term.

2. Trade with a fixed amount of money you would be comfortable loosing,

3. Invest the benefits from the trade into the projects in step 1.

That's it!

Ok, to go a bit deeper, here is a somewhat more detailed version:

Prerequisites:

• You need to have a precise idea of how much money you want to invest and for how long you are ready to hold on to it.
• You need to have a list of coins you really believe in for the long term.
• You need to know exactly how much you want to be trading with.
  
  

1. Start by putting money on the coins on your list.

Make sure to balance your investments amongst all the coins on your list so that you do not rely too heavily on 1 coin.
Your list will hopefully also be varied (i.e. avoid investing only in privacy coins, or in simple currencies).

2. Find trade opportunities and put a fraction of your trade money on a few of them.

It doesn't matter here that you like or not the coin. You don't even need to know what the coin is about. You will be following it for a few days, weeks, maybe months and then forget about it.
To find the opportunities, there are many possibilities. Here are 3 you can try:

• Technical analysis (study the graphs) - it takes some time to learn it but can be very powerful.
• "Buy the rumor, sell the news" - detect rumors (or news) that are likely to increase the price of a coin and buy it before everybody does. Ones the price increased and before the news is about to happen, sell.
• Follow a reliable source - with all the posts and videos staying online, it is easy (although a bit time consuming) to check if a source is able to predict reliably price movement. DOn't forget, that nobody is able to predict everything every time.

The process to open a trade should be as follow:

a. find a level you feel comfortable opening a trade

b. find the levels at which you will sell - always sell at more than one level in order to mitigate your risks

c. find the level at which you want to exit the trade to minimize loss (the so-called Stop-loss)

d. go ahead and keep to this plan. Also, consider adding fraction over a few days to average your entry level.

3. Take the benefits and invest it into the coins on your list.

Don't forget to take the benefits! You should sell at whichever levels you planned to sell. If for some reason you believe the price will continue to increase, it is better to sell and open a new trade on the same coin. This way you follow a given process and avoid falling into trading based on feelings.

I hope this will be helpful to those of you struggling to find and/or follow a strategy. Feel free to comment or ask. I'll be happy to answer.

I wish you all a great year 2018, and don't forget there is a life outside the blockchain! ;-)