For a long time, I have moaned about the increases to the cost of living brought about by the minimum wage. These increases drive me absolutely mad, because they always, with no exception, do more damage than good. People are lulled in because they are heralded as a solution to inflation, which could be more easily dealt with by reducing things like VAT, allowing more personal income before Tax and enforcing price drops in shops in tandem with a reduction of VAT and Corporation Tax.
So what does this mean for us economically?
So I look at my bank account every now and then. If I save 1000 pounds, that’s 1000 pounds I will have in my savings. If I spend it immediately, I will get 1000 pounds worth of value, however if the prices of everything will naturally go up along with the cost of living, which the minimum wage always bumps up much higher than any benefit gained, that means my savings will always deteriorate in value. Even if I am earning a larger number, I face higher percentages of my income being taxed across the board, from income tax to VAT, and this affects everyone, most of all people on or close to the minimum wage.
Inflation allows people to write off annoying debts much easier, as the real world value of the numbers you owe deteriorates the more inflation is pushed, and this is why the Government likes to create it, as well as using it to increase the total percentage of income paid in tax among other things. Basically it’s a giant trap, but I digress, and this is where Cryptocurrency comes in for me.
Cryptocurrency value increases and decreases based on massive varying factors, and an investment in it can either lead to riches or a complete loss of finances. Naturally, this both excites and terrifies me accordingly! Stagnancy can also follow, along with depression and despair however, the volatility allows for a massive chance to gain a lot of money, sometimes very quickly. My fingers itch with the prospects!
A lot of new currencies start off being super cheap and gain in value extraordinarily over time, sometimes creating millionaires in a matter of days. It only takes a small investment and a bit of luck and the results can be better than playing the lottery. Heck if I got lucky, I’d just cash out and be happy, get my family sorted and friends and call it a day. I’d also buy a sailing boat because I like sailing and cut my work nights down somewhat.
Crypto is a Risky Business!
As we have some altcoins that will deteriorate over time, and some ventures that will crash and burn, we have to accept every investment comes with risk. I started crypto trading a while back and I enjoy it. I’ve made a reasonable amount of money, not enough to quit my job or retire but through a little research and analysis, I’m doing reasonably. I have some crypto currencies I like, some I don’t and some that are pretty much just meh. I am invested currently in over 20 different cryptocurrencies, a large spread to increase my chances of getting lucky.
I’ve decided to accept cryptocurrency donations on my site because I enjoy the game and it will allow other people like me to support me in my weirdness in a different way.
Rules that have worked for me:
- Don’t Panic! At the start I used to panic sell, only to watch the Cryptocurrencies I’ve sold massively upscale in value costing me a lot of money.
- Remember this is an investment, invest only what you can afford to lose and don’t think of what you have in crypto as being your money. Once it’s in the system you can easily lose everything you put in, so losing the thought patterns and attachment to the money is key to keeping a cool head and avoiding mistakes. You have to be prepared to take the loss the second your money has turned into Crypto and not let that phase you.
- 20% rule: After preemptively trading my cryptocurrency to a new coin, I have seen horrendously large rises in some of the currencies I’ve traded away. It’s always good to keep at least 20% in your previous crypto because you never know when it’s going to boom. This rule has helped me save myself several times from potential disasters and allowed me to ensure that some of my coins have done well for me, even after I’ve decided a different currency will be better considering their market plans.
- Research the cryptocurrencies that you are interested in, and focus on their news, rather than the news of certain sites. What they are doing to improve their systems is more valuable than the speculation of people who mostly do not know what they are doing.
- Be diverse and pick reliable currencies. It doesn’t pay to take horrendous risks. Diversify your investments among a number of different currencies, and i must emphasise to please research them before you chunk in a lot of cash. I tend to use reliable currencies that move against each other in the market, so when one is doing well the other tends to do badly. Transferring the successful one to the other has massively increased my profits when the market turns around. Whilst patterns are rarely predictable, it can be good to work with multiple currencies that reliably gain and fall in tandem.
- 10, 20, 50, 100. Whenever I trade between cryptocurrencies, I trade using these units so I can quickly see if a currency has gained massively and know which of them is doing well at a glance. This allows me to utilise the next strategy well.
- Trade out profit. If you have a currency you really like and it’s doing well, but you wish to invest in something else, trade the profit out, rather than putting more money in. If the cryptocurrency reduces in value again, you’ve lost nothing but your profit, whilst opening up a new investment opportunity. As the cryptocurrency you traded out was at a higher value than before it fell, you will not lose so much when it drops down in value and your new investment might earn you a nice chunk. I’ve done this a LOT and it’s fairly successful.
- If you consistently lose at cryptocurrency, only do trades with what you earn on the platform, stop investing your money until you understand what you are doing!
- Don’t buy on a high. All crypto dips at times, get it in the dips, and wait for them – they will come.
- Set a rule for profit. At the moment my rule for profit is approximately 20% profit before I trade one cryptocurrency for another that is going to go up. I will always save some in reserve, 20% just in case the crypto keeps scaling well, as I’d hate to miss out on one Bitcoin level coin.
- Don’t blame yourself if you screw it up or think you are a god if you make it big, Cryptocurrency is a dangerous game and it can easily kick you between the legs if you’re not careful. It’s dangerous if you think you are the best trader ever if you luck out for a month or so, then do something dumb only to lose thousands. I’ve seen it happen with other people and when I started it also happened to me.
As with anything on the Internet, take my advice with a pinch of salt. None of what I am telling you is professional financial advice as I’m just a hobbyist. I’ve got super lucky at times and at others, I’ve screwed myself over, oh boy have I done that! Even today, whilst writing this, I lost 40 quid to just not waiting for a few minutes, but how would I know that the currency was going to peak even higher! Thankfully I saved 20% on it and made a nice chunk before it dropped again.
Do I recommend getting into Cryptocurrency?
If you have an addictive personality – no. Addiction is a serious problem when it comes to something like this. An addict doesn’t think with the mind, but more so with the need or desire that comes from the addiction. Addiction makes people make really terrible mistakes, such as losing everything then putting more money in before they understand it’s disappearing. Spotting an opportunity and investing badly can end up costing thousands. So if you are easily addicted to things, you need to be very, very careful with Crypto.
If you have money, then give it a shot, even if you just work one or two extra overtime shifts in a month to give it a go. The only thing you will lose is a few hundred, and if you give up, leave everything there, or trade it into a few different currencies and come back in a year to see if anything is different. You never know when one thing may pay off. 100 pounds will give you around £3.00 plus in 20 currencies on Coinbase. One of them might increase thousands of percent in value over the next year or so. Nothing is guaranteed, but you never know what could happen until it does. You don’t win any games you don’t play.
If you want to try investing with Coinbase, if you’re going to invest over $100.00 and you use this link you will get some extra bitcoin when you spend your first $100.00 or other currency equivalent.
Which Currencies do I like?
I actually like loads of cryptocurrencies! My favourites are:
- Shiba Inu: A cool classy meme coin that’s nice and volatile. Buy low sell high leads to some valuable results and with a little luck I could become a shiba millionaire. Not that I think that’ll happen any time soon. I invest in the currency when it’s doing badly and then trade out for other cheap currencies when Shiba Inu is doing well. Doing this I’ve saved a hell of a lot of money.
- Algorand: Reliable, effective and intelligently designed, Algorand feels like a crypto that will do well. I like their staking rewards on Coinbase, which ensure my value in Algorand increases with the power of the currency. Algorand was developed by Silvio Micali who is a prestigious Turing Award winner. It’s a great Cryptocurrency, just make sure you invest on the dips.
- IoTeX is a secure and scalable cryptocurrency with a solid team behind it. Whilst not exceptional by any means compared with some cryptocurrencies in terms of results, IoTeX has been a reliable cryptocurrency for me that has helped me both hold and expand on finances when other cryptocurrencies have not given me the percentages I set myself for growth. I personally love it, but others may not revere it as I do. As anything else in this market you cannot always judge on past experience, but it’s pretty reliable at the best of times.
- Tezos is also a great cryptocurrency to get into on Coinbase, and holding it will result in rewards over time. Tezos have a nice pulse for people who are in it for the long game and wait. It’s easy to grab them when they are low and sell them when they are high, as price fluctuation can be insane during a week. Tezos like IoTeX are one of my go to currencies if the timing is right.
Investing in any of these should not be taken as financial advice, they are my personal favorites, and previous experience isn’t always going to repeat. Every time I make a trade, I ensure that I am trading sensibly and not taking dumb risks. I always keep some reserves handy just in case something goes horrifically wrong as well, as losing money is the opposite of why I got involved in Cryptocurrency.
If you found this useful and want to donate to me, please click here to choose a cryptocurrency to donate! If you’d like to sign up to Coinbase, the platform I use, and click this link you will get a small crypto gift, as will I when you spend your first 100 dollars.
Whatever the case, stay safe and only play with money you are prepared to lose. I started on £10.00, realised the scope of what could be achieved and went a bit crazy, but it’s paid off so far. From around £2,400 investment, I am just over £4,100. I am very wary and know this could change in the wink of an eye. Personally I am enjoying the system, and I’m hoping it’ll make me rich.
If this has been useful to you and you wanna throw a few crypto coins at me, please click here to donate some crypto!
Just your average space adventurer turned blogger. Prematurely balding. Egad, no! Forsooth!