How Do I Start Investing in Cryptocurrency?
Cryptocurrencies such as Bitcoin, Litecoin, or Ethereum, seem to be a hot commodity these days. Suddenly the mainstream media have turned their attention to the crypto markets, and the incredible gains that seem to be playing out. Seems like every day the big daddy Bitcoin is either on the television, in an online ad, or being discussed at work around the water cooler.
- The crypto market is here.
- The market capital is here.
- The Crypto investors are here.
If you find yourself asking the question below, read on for a reasonable, easy to execute answer.
“How do I invest in a cryptocurrency like Bitcoin?”
Investing into the cryptocurrency market can seem, at times, to be shall we say, overwhelming? Wallet addresses and exchanges can seem like a lot to take in. In actuality though, if you can type up and share a social media post, you already have the skills to invest in or hold cryptocurrency, (crypto.)
There are actually a number of different ways to invest in crypto these days. Apps, websites, and even mobile accounts are easily accessed and are no more difficult to use than a shopping app like Amazon’s.
Before deciding which route to take when initially investing into crypto, it’s probably best to decide what it is your crypto portfolio goals are ahead of time.
Answering these short questions may give you a better idea of how to go about with your first step.
Do I want to hold my crypto short-term and make a buck, or HODL (Hold On for Dear Life,) for the long haul?
Do I want to trade just Bitcoin, (BTC,) or do I want to buy Altcoins like Ripple XRP, Litecoin LTC, or Ethereum ETH, as well?
Does it matter to me if I physically own the coins or just the value thereof? (More on this further on.)
Buying Crypto is inevitably going to cost you some money. One way or another, you will have to link a bank account, credit or debit card to get your feet wet. Depending on where you reside in the world, the options for this first critical step are far and wide. I tend to lean toward these two popular crypto exchanges for newbies due to their ease of use and high trust among users, (I use them still today.)
The first recommended #CryptoNewbie exchange is without a doubt COINBASE. If you have been researching or reading the crypto news at all, chances are likely that you have heard of this company before. Coinbase is a San Francisco based digital currency exchange founded in 2011. Coinbase is by far the easiest platform to go through when starting out in the crypto world. Coinbase has a web platform, as well as a mobile platform available in either Android or iOS. Coinbase integrates your preferred payment method with a built-in wallet interface to store your crypto in their servers right from the app. You even have the ability to transfer (for free,) to their digital exchange called GDAX, (in case you want to try your hand at trading.) Coinbase does charge fees for almost every transaction, however, they are minimal. The only downside to Coinbase is the fact that only 4 different Crypto’s are available. Great for the beginner though!
Cex.io is another exchange that can get your feet wet easily into the crypto world. Based out of London, UK, CEX.io is another cryptocurrency exchange founded in 2013. Cex.io does offer more trading options than rival COINBASE, however many prefer to use a company that is centered in their country. Either way, these two exchanges are extremely beginner friendly.
There are many exchanges out there that allow trading in the lesser known coins called Altcoins. One of the largest and easiest to use is called Binance. Binance is a Chinese company that trades in countless Altcoins with many different trading Pairs. A trading pair is the two coins that get traded against each other. Bitcoin vs Litecoin would be the BTC/LTC trading pair. Binance offers many different pairs of Bitcoin, Ethereum, and their own Binance coin, as pairs against countless other Altcoins. The only downside to Binance is that you cannot buy with Fiat, (US/EURO/etc.) You must first buy Bitcoin, Ethereum or Litecoin from another exchange and transfer it over using the blockchain network.
What if all of this is too complicated for me?
It may seem like a lot to take in, however, the processes are really, truly very simple. If you just want to get your feet wet and reap the benefits of the crypto market, without all the hassle, there are other options.
A company called ABRA has introduced an all-inclusive app for buying, storing, and trading your crypto, all in one place. ABRA gives the user the benefits of trading crypto, without all the legwork. The only downside is that when buying anything other than Bitcoin through the ABRA app, a person is not actually purchasing said crypto. ABRA uses a unique set up where SMART-CONTRACTS are linked to a coins price and therefore into the app. For this post, we won’t get into what a SMART-CONTRACT is, however, if you would like to learn more, read my post about the blockchain platform, Ethereum. Rest assured, the ABRA app will give you the correct prices of Altcoins without you actually having to own them.
Owning Crypto can be the most exciting and exhilarating experience that a person can have these days. Watching your favorite coin rise up and up in value is a feeling unlike any other. Getting started into the crypto world may feel like an extremely scary and daunting task. Thanks to these companies working hard to bring Crypto to more and more people across the world, buying crypto is easier than ever before. If you decide to get your hands on some crypto, take it slow and try one of these easy to use platforms. If you have any questions, I would be happy to answer them. Shoot me an email or join our Facebook group Lemons to Lambos to learn more!