PayPal has just announced its new plan that will allow users to invest in different forms of cryptocurrency. With cryptocurrency at all-time highs, it’s no surprise that you and many other would want to begin to invest. Early investors in Bitcoin turned themselves into millionaires and there are rumors Bitcoins cap is much larger.
With that being said, recently PayPal has announced its new cryptocurrency plan. The plan allows users to invest in Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. I have heard many opinions on the new feature, and most say the same thing. The feature will be disastrous for some and incredible for others.
Viewer Discretion: I am not a financial advisor and any advice taken below is for educational purposes only. Some of the links below are affiliate, meaning I may profit of off them with them with no extra expense to the customer.
Investing Safely
The plan will allow users to invest in the four crypto currencies starting for just a dollar. Meaning, anybody with any level of knowledge will be able to invest. Before you go investing however, there are a few important things that you need to know.
If you don’t have a lot of money to invest, I would suggest Acorns over PayPal Bitcoin any day. You still have a much better chance of making more money consistently in the stock market than in crypto currency. And, if you sign up here you can get a free five dollars invested for you.
If you are wanting to invest in the cryptocurrencies, I would use different methods for getting the money to invest. Investing with your own money is often not the best way to invest. I wrote an article here about how to make money off of surveys, and you can use this money in order to get the money in PayPal.
Buy Low and Sell High
The other important part of investing in cryptocurrencies is to buy low. Often I’ve seen people lose thousands because they’ve bought Bitcoin at high. Bitcoin can fluctuate quickly, so when you see it drop that’s when you buy.
By buying low you can almost guarantee that the price will rise again and you can make money. My biggest concern with the plan is that often people who use PayPal are not the most financially literate. I wouldn’t be surprised if over ninety percent of people lost money.
Most beginners seem to invest when things are on the uphill, which can really hurt their long term returns. The best thing you can do is learn how to invest in your own personal way. For example, I tend to wait for there to be a huge spike and then sell.
Afterwards, I usually buy stocks after the spike has crashed some. Currently, I am planning on waiting for all of the cryptocurrencies to decrease in price before I invest. I believe the hype is too high right now, so I would wait for it to drop.
If you are investing small amounts of money, I would only sell if you were making profit. If you lose twenty dollars that you invested, it is typically not that big of a deal. Unless you are investing thousands of dollars, you should only sell when you can make money.