Getting Started With Crypto? So you’ve heard about about crypto and cryptocurrencies from your friends or colleagues and you’ve seen references to it on your social media platforms, on the news and even on skits on SNL. But…you are not sure what all the fuss is about and not sure if you want to invest in crypto or are unaware what that even means.
- The first step as always is do some reading up on crypto. Here’s some basic guides..
- Next is to identify the cryptocurrencies you want to invest in. Due to the ‘de-centralized and programmable’ nature of cryptocurrencies, literally anyone can create their own cryptocurrency and start trading in it. As of 2021 there’s over 4000 cryptocurrencies (https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/) but unless you are a day-trader (gambler?) we recommend you stick with one of the top 10 cryptocurrencies. Most novice crypto-investors start by acquiring either Bitcoin (BTC) or Ethereum (ETH)
- So how do you actually trade in BTC/ETH or any of the cryptocurrencies? You can’t use your traditional investment brokerages like E*Trade, TD Ameritrade etc to trade in cryptocurrencies, at least not yet. So you have to open an account with one of the dozens of Crypto exchanges/brokers. Since a lot of them are new and non-regulated, we recommend starting with one of the top 2 crypto companies…
- Click on the links and follow the steps to open a verified account with either of them (note: we get a referral bonus if you use one the links above). Once you have a verified account, you fund that account with ‘real’ currency i.e. US Dollars $ for US customers. Now you can buy BTC or ETH or any of the other cryptocurrencies these crypto brokers offer. Both Coinbase and BlockFi only offer trades in limited cryptocurrencies so if you want to invest in any of the ones not offered by them you’ll have to open an account with a crypto broker/exchange which trades in that specific cryptocurrency
- Since cryptocurrencies are not regulated or tied to a specific market like NYSE/Nasdaq etc, cryptocurrencies can be traded 24/7, 7 days a week and their prices are very volatile. Also most of the crypto brokers do not offer limit orders on buying/selling crypto so keep an eye on Crypto Prices and trade when the price is right for you. The only one that does allow limit orders is Coinbase Pro so if you are planning on frequently trading in crypto then it’s worth signing up for that