Topic: $20K to invest in coins - Where to start? - page 2. (Read 514 times)

$20k for a starter is not a small amount. It may involve high risks, but as long as your friend has known about the risks and ready for all the risks,I think that Maybe this way can help:
1. Your friend is better to diversify the money into several cryptocurrencies because putting it all into one coin will be much riskier.
2. Ask your friend whether the coins are for the long term or short term of trading, maybe some coins will fit into each.
3. If he is willing to get into the long term, Bitcoin, Etehreum, and also BNB are the best choices. However, Bitcoin still becomes the highest priority.
4. Then, if it needs some coins that are worthy for sort-term or trading, I think that coins like Zilliqa, DOT, SXP, and also SFP are good choices.
5. Never try to get into a new project if he doesn't know the legit project or investing in certain platforms with very high profits, because they may be scams.
6. INvesting in top coins are better, of course,  with diversification

Don't buy any crypto coins before someone understands enough how the crypto investment works and how to do it properly. $20K isn't small money, I think it is a too big amount for a newbie. I suggest your friend use a small amount of money first, maybe about $50 or $100 to start. Regarding what coin to buy? I think for a beginner, it is better to buy top altcoins. Your friend can buy top 20 or top 10 coins, except stable coins.

Wooo!!

Surprised by these answers! You guys rock!

I took my laptop and opened this topic in front of my friend and we both read carefully each reply here and at least we know where to start. I know crypto world is about staying updated with the latest trends but also learning different aspects of it such as trading and holding them for x amount of time.

I spent a consideration time watching Youtube Videos/Documentaries, Although most of them are very confusing and I had to stop them just because I got lost but I learned few things at the moment the process for me looks like this:

In order to start investing you should open an account in any big CryptoCurrency Exchange after doing that you have to deposit x amount and convert them to BTC/ETH the next step will be opening an wallet to store the coins.

I saw here a lot of answers that replicated that I should strongly tell him about the risky part of losing everything and I can't argue on that because you guys are totally right but sometimes not knowing the risks is actually a good thing because you might end up winning lol jk

I definitely need to read more and this forum I think is the best way to do that, which thread is a MUST Here, any suggestion?

However we still have questions like:

- Which Exchange to use and is it risky to deposit all the money through VISA card?
- Which Wallet is a secure one. (I heard the hardware one is the most secure but for the beginning we can use an online one)
- Everyone on youtube is suggesting the ETH because of the advanced blockchain technology and it is going to be the currency of the future in contrast to the replies here where everyone is suggesting BTC, any thoughts on this?
- What about PolkaDot and Cardano?

I couldn't be more thankful for your time guys.

All that has to be in reserve with $ 20k available so we need to share some cryptos that we can rely on in the future, we have to know what to buy and it certainly takes a strong and precise analysis even if you are a beginner you can follow people. those who already understand what it means can ask which step is better, while the capital of 20k is quite large.

And it's true @zasad said we should buy a hardware wallet because it's the safest one if you want to store it for longer for the long term at a later date.

Every investor will definitely have a portfolio, so there we must be able to manage and not buy certain coins, so percent what will be allocated, well, there we will know how that is generated.

I would purchase a Ledget or Trezor hardware wallet. You should not buy coins for the entire amount at once.
Divide the amount into 4 or 5 parts and buy cryptocurrencies every week.
The ideal option would be to send money to the exchange and make purchases of 500-1000 dollars every week, and then withdraw the coins to a hardware wallet.
This method will allow you to buy coins at an average price.

The truth is that in a bull market, even a novice with no experience in trading cryptocurrency can multiply their capital. And I know several such examples from my environment. And this investment was not related to bitcoin, but it allowed him to increase the deposit, because altcoins showed a very strong price increase. This way, your friend can make money without having enough knowledge about cryptocurrency, but he can also lose everything.

If you or your friends have that much money and are confused about where to invest, you need to divide the money for several coins. Bitcoin became the main coin for investment and was followed by ETH then BNB, when the coin was good and trending well.
The top 20 altcoins on Coinmarketcap are also available to choose from. Really have to do the analysis first.

Investments must also have a target, whether the target is short term, mid term or long term. Because it will also affect the results to be obtained. Don't use all that money, leave 50% in reserve in case of emergency.

It would be better if you are going to introduce him to this forum so he would know or read directly the replies or the advise of some experts here in this forum, it will also help him or her understand more about the cryptocurrency and not rely only for the hype. A lot of beginners are really risk taker because they don't have enough experience yet so they don't have enough idea how risky to invest in cryptocurrency without any knowledge.

I would definitely diversify my investments and expand my portfolio.

If I were to have $20k, I would allocate $5k for crypto, the other $5k for stocks and the remaining $10k for other purposes within both. It is imperative that you diversify your portfolio and explore other modes of investing. Going all-out in crypto may seem a good idea, but the risks are too high for me to handle given that amount of money.

In addition to the values I stated, it is also essential to determine your short and long-term plan on your investments. I will most probably day-trade half of $5k in crypto and the other half for long-term trading.

I am starting my own ETH Mining Rigs and starting amount is $5k which will give me $5k back in 6 Months taking care of electricity bills and Hardware cost.
So, if you start with $20K, you can earn almost $30K in an year or so if Mining remains consistent.

Also that friend really needs to understand the two terms FOMO and FUD.
After understanding them they need to vow never to let themselves be affected by either.

They also have to come to the relaisation that they are looking at tying up that $20,000
for the medium to long term to let it mature, this involves PATIENCE, and patience
is great for counteracting the effects of FOMO and FUD.

On a general note, its funny how some people need to see results before deciding to get
into Bitcoin - Blessed are those wo believe and have not seen

anyway its never too late to become a Bitcoiner!

You have to start by understanding the risk in cryptocurrency investment, understand the fundamental aspect of it, know what to look out for before selecting your investment (coin), understand the entry/exit time and have good knowledge of stop lost strategy.

I would suggest you spread your resource. Bitcoin is a pretty cool coin to invest in. But there are lots of other coins with wonderful projects behind them one of such is ripple and dodge. Although you should also do your own research (DYOR).   $20k is really a huge start and you need not rely on one source for information. You certainly need to study various coins knowing the project behind each before thinking of investing in them. Different coins has different project behind them. If proper research is not done you might end up investing in dead projects

You are actually right, that's not exactly dca. I just meant I would buy it at some interval as long as it's under 50k.

With that condition that you have mentioned, the best choice will always be bitcoin. But you should still keep on learning and make your own research before you proceed buying it.

Having an idea how it goes and how does the market works will make you confident that both of you are prepared to win and lose some as for its volatility.

I second the opinion that discussing the risk is also a good idea for a new investor. Make sure they know that their portfolio can go -90% in a single day or more. I think lots of new users are interested in the opportunity without embracing the risk and then claim that crypto is a scam in the end when they failed to utilize the opportunities to make some profits.

Make sure he's really prepared to lose all of that money before he starts. Reduce the amount necessary since there's no use in guiding him if he can't be patient because he lost the money he can't afford to lose.

But that's not exactly a dollar cost average method if you waiting for the price to drop below certain threshold (in your case it's $50,000) and only buy then. So what let's say BTC goes down to 49k and you buy some with portion of your money, and then BTC goes back to 55k? Does that mean you won't buy again and instead you will wait for another "fair price"? How exactly is that DCA, and what if BTC never goes back below 50k, does that mean you won't buy ever again?

Point of dollar cost average method is to stop worrying about the current price and trying to time the market. Instead, you divide the money that you have to invest, and buy BTC in regular periods (let's say weekly or bi-weekly) no matter the price. In the long run this works flawlessly with bitcoin.

Yes, I mentioned that in response comment

If your friend is a very risky person, and in such a hurry with investments, try to tell him about all the risks. It is necessary to show the whole truth not only from the beautiful side but also about the amounts that were lost by people. Stories with incorrect storage of bitcoin and its loss in the future, as well as the risks of volatility, can sober your friend, and possibly give him direction on what to do at the moment.
If he is ready to invest his money, ask how long is he going to do it? If he is ready for such risks and intends to invest for a long period, then perhaps he should not delay investing. And of course, it must be bitcoin.

If you/your friend are new to all this, I would suggest that you stick to bitcoin, or at least to invest majority of money in it, especially until you figure something sout and how this market works. But even then, if you decide to invest in altcoins, name of the game should be "make as much BTC as possible".

Thing is, while altcoins might offer bigger returns in the short time period, being a newbie means that you won't sell that altcoin at the right time, greed will kick in no matter what you said to yourself before like "I will get out when it makes 3x) so in the end you will end up with less money than you would have if you just invested in bitcoin.


I know people that said the exactly the same thing when BTC went to 30k, and are still waiting for dip to buy BTC for the first time. Imho, better tactic is dollar cost average if someone ain't sure. Less hassle and you don't have to time the market.