The Beginners Guide to Safe Investing

We’re on the brink of a truly exciting phase in the crypto cycle. It’s the time that seasoned investors wait YEARS for! So if you’re thinking about starting your investment journey, your timing couldn’t be better. But don’t wait too long, because we’re heading into the exponential growth phase of this crypto cycle. 

Starting your crypto journey is exciting and daunting, particularly if you’ve never invested before. But here’s the thing you need to keep in mind about crypto…

You don’t need to break the bank to get started.

With this asset, a little can go a long way, the important thing is to simply have some exposure. As I always say, having some exposure is better than none.

So what’s the safest way to start making money with crypto, and what should you avoid?

I thought you’d never ask!

Here are my top 5 tips: 

Tip No. 1: Start small, work big
There’s a common misconception that you need lots of money to be a crypto investor. This couldn’t be further from the truth. In fact, I often recommend that new investors start small – invest what you’re comfortable with and see how you go.

In other words, let the crypto market prove itself to you!

Dip your toes in, see some profit, and then decide if you want to dive deeper. This is a great way for any new investor to enter the crypto space.

Tip No. 2: Self-custody is key
We’ve all heard the stories about crypto being a scam, a Ponzi scheme or used for illegal activities. These narratives keep us stuck in fear, sitting on the sidelines and missing one of the greatest financial opportunities of our lifetime.

The truth? Crypto is incredibly safe when done right.

So how do you navigate the crypto world in the safest way possible?

By buying your crypto on a reputable exchange, then transferring it to a hard wallet that YOU control.

Exchanges are places to buy, but we don’t want to leave our crypto sitting there. Think of them like shopping centres – great to visit and get what you need, but make sure you take your valuables with you when you go.

Hard wallets are the safest way to store crypto because no one has the private keys but you. When you do crypto this way, you’ll eliminate 99% of the risk. That’s why I recommend self-custody for all DWG students. It’s the key to protecting your funds and ensuring you have full control.

Tip No. 3: Invest with market cycles
Many new investors think you can enter the crypto market at any old time and make money. But there’s a much smarter way to position yourself for great gains. It involves learning about market cycles so you can time the market like a pro.

The crypto market can have unpredictable moments, but on a macro level, it operates in cycles that are quite predictable – once you see them, you can’t unsee them. Familiarising yourself with these patterns will give you key information to boost your portfolio and your potential for incredible gains.

Investing at the right time in the cycle can be the difference between creating financial freedom or sitting on major losses for years to come, so it’s worth learning about.

Tip No. 4: Plan your exit and take profits
Just as we time our entry with market cycles, we also need to time our exit. This means having a clear plan for what profit looks like to you and, importantly, sticking with it! Ask yourself, at what point will you sell some of your crypto? When you’ve doubled your investment? Tripled, quadrupled or made 20x on your initial investment? Knowing your number in advance will help you stay grounded and focused when things really start to move and shake.

A big mistake I see newbies make is not taking profits when you’re ahead. It’s so easy to get caught up in the excitement, especially when you’re sitting on 2x, 10x, or even 100x gains! You can second-guess your exit plan and believe it will ‘keep going up’, but remember, what goes up can always come back down.

My advice? Don’t ride those profits all the way to the floor. Have a plan to lock in your gains.

Tip No. 5: Invest, don’t trade
People often conflate trading with investing, but they’re actually very different. Trading is a strategy with higher stakes, greater risks and demands more technical knowledge and expertise – not suitable for a beginner. Investing, on the other hand, is about long-term wealth accumulation, where investors can hold assets for months and years because we’re less concerned with short-term price fluctuations. We know the long-term goal.

So where do trading bots come in?

In my opinion, using trading bots is a recipe for disaster. These programs are designed to take your money and run – so I suggest you run the other way first. Stay away from apps and websites that want to hold your crypto for you and promise thousands of dollars a month in returns. They may sound amazing, but they’re usually scams. If they really worked, don’t you think we’d all be sitting on private islands already?! So stick to self-custody, keep your funds in a wallet you control and you really can’t go wrong.

So as you can see, the crypto world is very safe to navigate, as long as you keep a few key rules in mind. As with anything, use discretion, do your research and take it one step at a time. Remember that if you have exposure to this asset class, you’re already ahead of the game.