Bitcoin is all over the news right now and tons of new people are streaming into the crypto universe, but there are a few things that all new crypto investors and users need to know. Here they are...
The Five Things Every New Crypto Investor Must Know
1. Security
The most important thing about crypto is keeping it secure. If you buy on a site like Coinbase, you do not have access to your private keys. Your private keys are what the blockchain uses to identify that the coins are yours. There is nothing wrong with buying on Coinbase, in fact, I bought a lot through Coinbase. You just don't want to keep your coins there. I recommend using the Exodus wallet and work your way to a cold wallet soon.
Once you put your money in a secure wallet, you will have access to your private keys. Then you will want to write them down and put them in a very safe place. People can steal your crypto if they have your private keys, so it is not something you want to email to yourself. Just write it down and keep offline.
2. What Goes Up Will Go Down
One thing that happens when Bitcoin and crypto are all over the news is that the value seems to peak around those times. It happened last June and July too. Whenever there is a big spike, there is bound to be a major pull-back as well. Just because you buy in with Bitcoin being at $17,000 and you see it fall down to $15,000; don't panic.
We are all very early in this blockchain and crypto game. There is a ton of growth out there so don't get frustrated if you come in at a peak and things go down a little. For me I got in during the peak in June and wasn't until recently that I saw some major returns. The biggest mistake you can make right now, other than not getting in, is selling off too early. Just hold it or use the coins where you can. Don't give up because you didn't see the return you thought you were going to get. Be patient and you'll get there.
3. Volatility
For investors that come from the stock market, the crypto markets are almost too volatile. SBD gained 500% in a week, Litecoin gained 100% in a day, but it goes the other way too. I've seen Bitcoin and Ethereum lose 70% of their value in a month, only to jump right back up after that. The market is extremely volatile and if you are trying to make day trades it can be maddening. The best thing to do is just hold it. Get some money in the markets to figure them out and don't worry that your coin lost 20% in the last hour. It could go up 40% tomorrow. Just get in and stay in.
4. Use The Coins
If you really want to invest in crypto, then also think about application. See where you can use coins or even accept them for services. One of the things I like about Steemit is that I have used SBD to conduct dozens of transactions. I've paid people to make graphics for me, for promotion or for digital media services. Using the coins that you believe in will only help the entire movement gain momentum.
I strongly believe that people should be looking at crypto as an investment in a lot of ways, but I try to use crypto where I can to conduct transactions. Right now, there are not too many places to use crypto, but as this revolution grows, more and more places will start accepting and using different coins. Support those businesses and make transactions in crypto where you can.
5. Join Steemit
Steemit is a community of crypto users that blog and comment with others and gain crypto in the process. The community is filled with tons of helpful and interesting people that will help you on your crypto journey. You can actually make crypto by asking questions on how to use crypto. It is an amazing site and anyone that is really looking into starting their journey on the blockchain, should begin with Steemit.
(all gifs from www.giphy.com)
I hope you found these tips helpful and if you have any questions about getting started in crypto, leave a reply below.
Did I miss anything? Let me know what I should add in the comments below.
Thank you for reading.
Really excellent advice @walkingkeys. I'm new to the game myself and learning as I go but it is clear that there is an enormous amount of growth left for bitcoin and plenty of profits to be made in the short term also trading other coins.
Good post mate. Hope your day is going well. :)
I'm having a great day. Thank you very much. I agree there is a lot of room for growth. We're still in beta on Steemit.
I love this! I wish I understood the volatility in 2015. I would have left my money in and and kept buying instead of just leaving a few dollars in a wallet and forgetting about it.
I agree. I made some bad decisions when I first got in. It's part of the learning curve, but the good news is we're all still early. People will be saying, damn I wish I bought into Bitcoin when it was at $17,000 when it hits $50K. It's still early and we're ahead of the curve. Thanks for reading and the great reply. You got a new follower.
Awesome! Much appreciated!
excellent tips...
Nice article @walkingkeys. Thank you
Thank you very much!
This was so helpful! Thanks for the info