2017 is almost over and what better time to examine your 2018 goals than now. Last time, we shared how we tweaked the 2018 Piso challenge into 2018 Bitcoin Piso Challenge. The idea is you invest a certain amount in bitcoin every month. You don’t double the amount you put. It’s fixed. For more information, you can check it out here!
But what if you don’t want to do it with bitcoin? Maybe you want to invest in ether or bitcoin cash. We could have shared this in the original article. However, in the Bitcoin Piso Challenge, you only need to use local bitcoin startups like Coins and Bitbit and then convert your pesos into bitcoin from there. In this 2018 Cryptocurrency Challenge, we need a foreign exchange to invest in these altcoins.
Table of Contents.
- 1 2018 Cryptocurrency Piso Challenge
- 2 Steps to do the 2018 Cryptocurrency Piso Challenge
- 3 Why can’t I just leave the coins to an exchange?
- 4 Why should I do this instead of the regular piso challenge?
- 5 Overall – Will I really earn something from this?
2018 Cryptocurrency Piso Challenge
Instead of investing in bitcoin every month, in this challenge, we will be investing in an altcoin. Let’s say we want to invest in Bitcoin Cash. Here are the requirements we need:
Bitcoin stored in a bitcoin wallet
Altcoins are almost always traded against bitcoin. Not against the Pesos. Not against the dollars (well, in some countries, you can buy altcoins with USD).
- Still don’t have bitcoin, learn where to buy it easily in the Philippines here.
- We don’t really recommend this, but you can also buy bitcoin using a credit card.
- Where to store your bitcoins? Here are our recommended bitcoin wallets.
An account on a foreign cryptocurrency exchange
Currently, Coins supports ETH and BCH with the original BTC. For SCI Ventures, they are looking at incorporating bitcoin cash, ether, or ripple in their buybitcoin.ph platform.
Recommended cryptocurrency exchange
We don’t have a recommendation on what exchange to use at the moment. Know, however, that we have used Bittrex in the majority of coins this writer have bought.
You can use other exchanges. While they might differ with Bittrex in terms of interface, their base functions should be the same.
The altcoin of your choice
I say don’t look at the price for the moment. Look at the coin’s background. Who’s behind it. What is the coin project’s goal? Does it aim to facilitate faster transactions? Does it want to build smart contracts? Maybe it aims to become a loyalty platform. Maybe it aims to become a system that will be used by workers and freelancers. Look at the coin’s vision and decide if you want to support it.
The amount you wish to put every month
Decide what amount you want to put into the altcoin every month. You can add more or less for some months or so, but focus on a fixed amount that you will constantly invest in the altcoin.
Steps to do the 2018 Cryptocurrency Piso Challenge
- Buy bitcoin
- Send this bitcoin to a cryptocurrency exchange
- Trade your bitcoin to the altcoin of your choice
- Move your altcoin outside the exchange and into a wallet*
*As for no. 4, you can take the altcoin outside immediately or you can wait until it gets big. Ask yourself, if you can sleep with Php 1000 worth of altcoin in the exchange, then it’s probably okay. But if you can’t stop thinking about it, then you should move it out. It depends on how comfortable you are in leaving your coins in the exchange. Some people will leave thousands in the exchange because it doesn’t dent their wallets even if it’s gone. It’s entirely up to you.
Why can’t I just leave the coins to an exchange?
Cryptocurrency Exchanges trades hundreds of thousands worth of cryptocurrency every day. Will all that money circulating, they are a prime target for hackers. If the exchange gets hack, you lose access to your coins.
Why should I do this instead of the regular piso challenge?
The Piso Challenge will give you a certain amount in Pesos when the year ends. Let’s say by December 2018, you get Php 40k from the Piso challenge. If you do the Cryptocurrency Challenge, you can get more than Php 40K worth of the altcoin you choose even if you only invested an accumulated Php 40K by year end.
It could be higher than 40K, it could be much much higher than 40K. But also, it could be lower. Read the next paragraph to know more.
Overall – Will I really earn something from this?
Right, this will depend on the performance of the cryptocurrency for an entire year. There’s no guarantee. As you know, virtual currency trading is extremely volatile. It is traded 24/7 and risky. Years ago, Bitcoin crashed so hard that many lost most of their money because they sold their bitcoins at a lost. Others hold on to their bitcoins and are probably the people who are bitcoin millionaires today. I will say this again, only invest an amount you can afford to lose.
And also for some legalese: This article is for informational purposes only and we are not liable should you stand to gain or lose money because of this activity. Nothing beats personal research.
So, will you do the bitcoin piso challenge? Are you prepared to take the risk, prepare to lose and gain at the same time? Let us know on Facebook!