Starting Crypto 101


I'm going to cover some crypto basics and run through how to get started into crypto.


If you're ready to get into crypto, consider using Coinspot with the link below:

https://www.coinspot.com.au?affiliate=7TBU2P


Beginning your journey into crypto can be a daunting experience. Sending off your hard-earned money into something you've got almost no idea about. This brings us to rule 1.


Do your research!


It doesn't matter what your best friend says (or even me) about the next latest and greatest cryptocurrency, you simply need to do your own research to find out whether crypto is right for you.

One thing to keep in my is the extreme volatility of cryptocurrencies. Whilst this volatility can produce some great opportunities, watching your portfolio half overnight isn't for everyone (we'll touch more on this later).


So why put your money into crypto?


Aside from the massive 5x, 10x, 20x or even 100x gains in a relatively short amount of time, cryptocurrencies don't purely exist to generate profits. They actually have a useful side to them. Take bitcoin for example. Many people outside of the crypto space think that it's got no value to back it up. In reality, though, bitcoin has immense utility. Through bitcoin, money can be sent anywhere around the world instantly, for a tiny fee, without any central person or organisation providing authorisation for the transaction.

If you've decided that crypto is the right space for you, it's time for rule 2.


Control your emotions


This one is crucial. When you don't have money tied up in assets, whether it be stocks or crypto, it can be easy to look in and say "wow, it's so easy to make money doing this". The classical buy low, sell high mentality. But when you've got actual money in these assets, it becomes a little more complicated. It's not otherworldly for cryptocurrencies to experience brutal 50%, 60%, 70% crashes. So when they do happen, you can find yourself panic as you watch your investment temporarily (and I stress temporarily) dwindle away.

Many people would cut their losses and move on. Please don't do this. No loss is permanent unless you make it permanent. And historically, established cryptocurrencies like bitcoin have consistently recovered from these crashes and go on to set new all-time highs.

In situations like these, it's often best just to stock checking your portfolio for a few weeks or months, that way you can't make any rash decisions.

And the same goes for when there are 70% surges in price. Don't panic buy because you think you're missing out. Just keep in mind that the next crash will bring prices to a great discount. One way to help with controlling your emotions is to follow rule 3.


Don't invest more than you are willing to lose


It's a bit clique. I know. But just stick with it.

If you don't have money that you need, tied up in crypto, then you'll have no reason to panic sell during a crash. But if you have money that you need for next months rent in crypto, you're going to have more pressure to lock in those losses. Now onto rule 4.


Don't chase insane gains


I know, it's a bit ironic that I'm saying not to chase insane gains when what we're trying to do is achieve insane gains. What I mean when I say this is don't chase huge, "once in a lifetime" 10 000% gains. No matter how many people advocate for these coins, they are almost always what's called a rug pull.

A rug pull is a type of scam when a coin is hyped up to have an extraordinary pump, only to swiftly crash. Often, you are unable to sell your coins during this pump, and its entire purpose is to make the creator of the coin money.


If it sounds too good to be true, it probably is.


In any case, if we think about this rationally, these coins are hyped up to be a "one-time" buying opportunity. This doesn't sound like something I want to put my money into. I'd much rather put my money into something that I'm confident will continue to consistently provide positive returns on my investment.

Avoiding these coins will help keep your money safe, and also give it more potential.


So how do I get started?


Personally, I've been using Coinspot and have had a great experience with them. I haven't run into any problems, and I find it pretty easy to use. Setting up your account is quick and easy. There's also a bunch of other exchanges like Coinbase and Binance, and the process is much the same.

Once you've deposited some money, buying a cryptocurrency is easy. Simply locate the currency you'd like to buy, for example, bitcoin, and click there will be a range of options for you to choose from.

Click on "BUY BTC" to buy some, "SELL BTC" to sell your crypto when you want, and you can view the "CHART" to pay closer attention to the price.

When you press buy, you'll be taken to this page:

Simply type in how much money you'd like to put into bitcoin and press buy. it's that easy.

Another thing to note is that you are assigned a unique wallet address for each of your cryptocurrencies. This wallet address is what is used to send and receive cryptocurrencies. Using this address, you may want to consider moving your coins to an offline wallet. Be careful to only send the same cryptocurrency to each wallet (for example, only send bitcoin to a bitcoin wallet) or you may lose your coins. You can view your wallet addresses under the "wallets" heading.

You can also swap one coin for another coin under the "swap" tab. For example, you may decide that you don't want bitcoin anymore, and want to swap it for ethereum.

Once there you'll be prompted to select the coin you'd like to swap, then the coin you'd like to receive, and finally how much you would like to swap.


If you're ready to get into crypto, consider using Coinspot with the link below:

https://www.coinspot.com.au?affiliate=7TBU2P


If you have any questions, please feel free to contact me and I'll try to help you out as much as I can.





9 views0 comments

Recent Posts

See All