How to invest in cryptocurrency – a guide for starters

in #cryptocurrency • 8 years ago

Cryptocurrencies are what the internet used to be in the 90ies: at their infancy but with a lot of potential. Below is my knowledge tailored to people just starting to get into investing, and, as I accumulate more I will share any updates and we will hopefully all profit in the long run.

Every cryptocurrency, whether it be Bitcoin (Abbr. BTC) or Ethereum (Abbr. ETH), needs a wallet so you can store the funds. Each crypto currency has its own wallet address next to a private and public key. You can send people your wallet address so they can transfer you money but !never hand out or show your private key!. Cryptocurrencies like BTC can be used to buy things on the internet, others are currently mostly suitable for pure long-term investments.

#1 Get yourself a wallet to store cryptocurrency

I highly recommend the multi-coin wallet Exodus which takes the complication out of the process of storing multiple cryptocurrencies. Supporting the most important currencies this is a simple one-stop solution with a great easy-to-use interface. This wallet also allows to exchange crypto using shapeshift.io.

Secure your funds even better

You should never keep your crypto currency on exchanges as they might get hacked (history shows us this has happened multiple times in the past).

The safest way is to store them in a so-called cold storage wallet like Ledger Nano S, as access to the funds is only possible when the device is connected to the computer. This mitigates the risk of you being the victim of a phishing or hacking attack. I would recommend to use it once you get familiar with crypto.

#2 Buy cryptocurrency / what should I get?

There are several services on the market. One I have found to be very easy-to-use is bitpanda (based in Austria) – a service for turning your USD / EUR (so-called fiat currency) into crypto currency like Bitcoin (BTC), Ether (ETH), using your credit card or wire transfer. – similar services like Changelly get you started quickly as well.

I would advise getting the majority of crypto currency in BTC as main investment, ETH in addition to that, and, the rest of the amount you want to invest in so-called altcoins. There is a lot of junk out there but some could definitely serve a purpose.

  • Bitcoin, BTC – as main investment
  • Ethereum, ETH – as secondary investment
  • Altcoins: Steem, Iota, Dash, Decred, Antshares, Stratis, Siacoin

Bitcoin has the biggest market cap but could be overtaken by Ethereum soon (who knows, I don't have a magic ball :) )

#3 Trade it on the market

Just like on the stock market, crypto currencies can be traded 24/7 (the markets are always open unlike even the forex market). Several markets exist and I would recommend cex.io (based in the UK) or coinbase (based in the US) for starters as their interface is not as overwhelming as with other exchanges (bitfinex, bittrex, poloniex, etc.) You need to complete an identity verification process in order to trade (most of the times you need a copy of your ID, utitility bill), and, obviously fund the account using your credit card or wire transfers.

Recommendation / More information

Start with a small investment first to get yourself accomodated with the process and tools. Only pick an amount you are ready to lose completely. Maybe for some this is $10 and for others it's $1000, this really depends on your private financial situation.

Find out crypto currencies, current prices and market capitalizations at coinmarketcap. Another good source of information is cryptocompare and coindesk. A good mobile application for tracking your investments is Blockfolio.

I highly recommend the YouTube Channels of @boxmining and node investor as they keep away the spams and scams which you get a lot surrounding cryptocurrencies.

Most importantly, have fun!

Was this guide helpful? Let me know in the comments and drop me a line.

#investment #finance #trading #tutorial
8 years ago in #cryptocurrency by
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     8 years ago  

    Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
    http://nader.io/cryptocurrency-investment-guide-starter/

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       8 years ago  

      thanks, little robot :) yes, this is my own post on my page but not as up-to-date.

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         7 years ago  

        Interesting discussion. I was about to start a similair discussion. The future is in blockchain. Crypto prices might be inflated now but the market will find it's way just like it did with the Internet boom. I was researching a way to find more info about the current cryptocoins on the market. Does anyone know about: https://www.coincheckup.com They seem to give this complete indepth analysis of all cryptocoins. Check for example: https://www.coincheckup.com/coins/Decred#analysis For the Decred Indepth analysis

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