Cryptocurrency investing tips for beginners

How To Buy Crypto On A Budget

When it comes to investing, there is no better advice than simply being consistent.

Countless articles have demonstrated that investing early and often can outperform even hedge funds for most investors. It's a testament to the power of compound interest.

Do you budget for your future self?

Having a budget can make it challenging to invest. But it can actually help you to invest in the right way if you reframe your experience.

Think not just about the here and now, but also about your future self. As we age, our cost of living tends to creep up. So a good tip is mitigating that climb by keeping your fixed expenses low.

A good budget should list all your fixed expenses, should estimate your variable expenses (like entertainment for example) and perhaps most importantly, should have some of the budget allocated for savings. If you don't invest and save now, you'll regret it.

I like to invest a set amount right in my budget. This is called dollar-cost averaging (DCA.) DCA allows you to invest consistently whether the asset is up or down at the moment. And there's a super side benefit to DCA – you can invest without stress, which is something that can plague investors. You don't want to become non-present at the dinner table with your kids because you need to check the price of Bitcoin for the 99th time that day.

How To Buy Crypto On A Budget
Before and after crypto

Coinbase has an option to DCA and buy a customizable amount of crypto on a regular schedule that you setup (weekly, bi-weekly, monthly, etc.) Coinbase will also give you $10 back when you spend $100 in crypto – which is a pretty good ROI. They also allow users to earn a few dollars in crypto for learning via short videos or tutorials about different cryptocurrencies. I recommend new investors stick to BTC or ETH to start.

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Gamify your investing budget

For me, I like to turn investing into a game. If you can see little wins incrementally, you're much more likely to stay on a budget — which will lead to a better financial future.

There are a few tools I like to use that help.

I use the Shakepay card, which gives a minimum 2% back in satoshis (which are the smallest unit of Bitcoin.) Think of the psychological impact that it creates turning every spend into an investment. (Unfortunately, the Shakepay card is only available in Canada.

If you are in the United States, you should look into the Nexo Card, which offers similar benefits.

You will get a nice $25 bonus when you create your Nexo account.

But even the best-laid plans sometimes fall short. In life, it's best to get used to the fact that life is not fair. So sometimes you might need to look into a short-term financial solution. These can help you get back on your feet again.

The bottom line is that many people don't consider investing as a part of their monthly budget. Be smart, and make sure you are using DCA to invest with less stress.

Got a tip on how you budget like a boss? Let me know in the comments!

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