Absolutely.

Do some of my friends and family think I’m certifiably crazy for doing so?

Absolutely.

Can you turn a few extra dollars a month into another stream of income?

Absolutely. By using money from a side-hustle, it becomes a little bit less scary to invest it in a new place.

Just because it’s not a massive amount of money to begin with doesn’t mean it couldn’t turn into enough to retire on someday.

Here’s how I’m using the cryptocurrency investment market (which sometimes feels like a Wild West rollercoaster lottery) to grow my portfolio with a few dollars a month.

It could be $5, or it could be $500.

To start out, look at your monthly expenses, take any extra — or part of what you might usually put in your savings account — and use that.

My monthly investment amount varies, and I tend to use money from side hustles so that I keep my “real” fiat (traditional, government-issued currency) paycheck in my “real” bank account for now.

Do not expect that you’ll get this money back right away — or in some cases, ever.

If you do your research and you’re smart about your cryptocurrency investments, you’ll almost certainly see returns.

You could “HODL” it, which means that it stays in the cryptocurrency market for a long time and hopefully gains value along the way.

With that being said, cryptocurrency is currently like the Wild West, so assume you’re taking some risk.

There are many exchanges from which you can buy, sell, and trade cryptocurrency. Popular exchanges include:

And many more.

Just search “cryptocurrency exchange” and you’ll see a tremendous list — some exchanges are country based and some are global.

For most — if not all — exchanges, you’ll need to provide proof of identification and add a crypto-approved source of money to fund your buying and trading.

This could be a bank account in most cases, but in others it may be a debit card that will then be used to convert funds.

No matter which one you choose, your exchange will walk you through the process since they want your business.

It may serve you to have a couple of different exchange accounts as some currencies are only offered on certain exchanges.

You may also decide to buy a cryptocurrency wallet at some point so that you can hold your investments offline and combine what you have purchased/traded from different exchanges.

However, there are “staking” rewards for certain currencies that essentially reward you a certain percentage for holding (HODL-ing) your crypto on these exchanges instead of keeping it in your private wallet.

Each cryptocurrency has a different value even though they are all part of a larger, decentralized system.

Bitcoin (BTC) is currently known as the “gold” of cryptocurrencies because there is a finite amount that will ever exist. Bitcoin is projected to continue to exponentially rise in value — even if it has a few dips along the way.

Ethereum (ETH) is often referenced as the “silver” to Bitcoin’s gold due to its popularity and the ability to have other currencies and apps run on the already established Ethereum network. It is also projected to continually rise in value.

There are thousands of “alt-coins” to choose from, some under a penny to buy a full share. You can see the “top ten” highest performing cryptocurrencies at the moment just by searching at any point — or check it out on one of the exchanges.

I picked my favorite five coins and now and then invest in another, but I don’t buy anything without understanding how it works first.

Read.

The.

Whitepapers.

Each cryptocurrency has something called a whitepaper which explains the creation and purpose.

For example, Ethereum’s whitepaper explains why it was created, how it is “mined”, and the overall philosophy of how it will be used as a cryptocurrency. The Ethereum network is now a larger parent network upon which many other cryptocurrencies and apps run.

DOGE (Dogecoin) has an explanation of why it was created in its whitepaper that literally says it was created as a lighthearted cryptocurrency based on the popular dog meme.

Some cryptocurrencies have a decentralized system with a mission, purpose, and project behind them, and some are just… there.

Penny currencies might be tempting — if you buy $500 worth and it goes “to the moon” then you might end up with $5 million if you play your cards right and know when to trade/sell.

Traders trade and sell cryptocurrencies fairly regularly. Some even day trade based on the market and interest.

Some HODL or hold onto cryptocurrencies for a long time and watch as they gain value.

It’s all about whether you’re trying to create a long-term investment/savings option, generate some quick income, or a combination of both.

Over time, your investments will grow if you pick the right currencies.

You might start to freak out at how much they grow, actually.

You might be tempted to sell, and that could be the right thing to do.

You might find yourself with a new hobby — and a weird new addiction to watching people react to the current market on YouTube.

I know I have — and I would have laughed at myself if I knew I’d be doing this years ago.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/long-term-perspective/how-to-invest-your-side-hustle-earnings-into-cryptocurrency-5681a3f56204?source=rss——-8—————–cryptocurrency