The turbulence, or rise and fall, in cryptocurrencies is something you have never seen before unless you traded penny stocks. You don’t need a college degree or education like a financial advisor to invest. These are simple rules you can easily follow to turn a hundred dollars into six figures.
Start investing when the market was near the top
Be careful when investing in cryptocurrencies under the cover of a multi-level marketing (MLM) or network marketing company
- These usually don’t work out in the long run
- The Bitcoin market dropped and continued to drop until a year ago
Watch out for taxes
If you sell your cryptocurrencies in less than a year, you will pay taxes as a short-term trader.
- When you hold your cryptocurrencies for a year or more, you’ll pay less taxes because you’ll be classified as a long-term holder.
Dollar-cost average your way to six figures
When you get paid from your job, invest in yourself – pull off some of your income and invest the money.
- Make sure you have enough to pay your rent or mortgage and enough to put food on the table.
Example of dollar-cost average with Bitcoin
Example: You bought Bitcoin and the price was $100 for one month.
- The next month it was $150, and the next month $180
- Over three months you paid $340.33
- As you invest your money, month after month, you’ll see the money slowly grow larger. You’ll go from three to four figures and then four to five figures.
