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I’ve had a few people reach out to me asking how they could invest their first $5k into crypto.
This was my email response:
HOW TO DIVERSIFY 5K INTO CRYPTO
I’ve outlined 2 possible options on what coins to invest in with $5000 with the aim of buying and not selling for at least a year.
The ‘Safer’ Option:
I use the term ‘safer’ loosely as nothing is safe in the crypto world.
I’ve selected 3 of top tier coins which might not grow insanely fast but also less likely to go bust. With this selection, I would not be surprised to see your $5000 doubled in a year’s time. Split your funds with the following:
Bitcoin (BTC): There would not be a crypto market without bitcoin.
A peer to peer digital currency on a decentralized network. Bitcoin is already mainstream and has built brand awareness proving that it will be here for years to come.
Ethereum (ETH); second largest market cap after bitcoin.
More than a currency, It’s a platform that people can create things on.
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Litecoin (LTC): Compared to being the ‘silver’ to bitcoin’s ‘gold’. A digital currency that has solidified itself near the top.
The Wild Option:
The following coins aren’t high on the market cap list and most are still smoothing out the creases but that also means they have the potential to explode if they get it right.
There is a chance that you might not get any return from these coins but on the other hand it’s not far off to see your $5000 turn into $30000+ a year from now. Split your funds with the following:
Bitcoin Cash (BCC): Similar to a spin off in a listed stock, Bitcoin Cash split from Bitcoin.
Where To Invest $5k In Australia?
While highly controversial, BCC is technically more advanced and quicker to send peer to peer without long confirmation times like Bitcoin. Bitcoin could end up being like gold where it is a store of money and Bitcoin Cash could be what you’d spend at the local café.
IOTA (MIOTA): It’s own blockchain that’s more advanced than the current ones in use. A major drawcard is that there are no fees with sending peer to peer. Have partnered with Microsoft
NEO (ANS): Been dubbed the Ethereum of China.
It’s already grown a lot and has the potential to really explode long term.
Omisego (OMG): A payment gateway.
Have partnered with Mcdonald’s as a payment option. One that can really go large.
TenX (PAY): A physical card you can ‘tap and go’ like a visa and it automatically converts your crypto into the local currency and pays for it.
A massive bridge between the crypto and real world which can be used right now.
EOS: Will be able to support over 1 million transactions per second, unlike anything else.
Currently is up to 10,000 per second.
* Can’t decide which option? Put $500 each into all coins mentioned above
How to buy and store coins?
For first time Australian based crypto currency buyers, I recommend CoinSpot
– It’s an Australian based reputable company
– The user interface is friendly to operate
– A good starting range of coins available to buy
– Pricing is in AUD
– Register an account
– Verify it
– Send AUD from your bank to your coinspot account
– Purchase the above mentioned coins
– Keep on your online wallet
Ideally, a Trezor/Nano Ledger (usb like storages) are the safest way to store your coins since it is offline it is less likely to be hacked.
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Also, online companies always have the chance of shutting down and disappearing with your coins. However, since we are only investing $5000 and want the quickest and easiest way to get in the game, it’s fine to go with coinspot in this case.