How to Get Started in Cryptocurrency Investing
By Timothy Tibbettson 06/15/2023 |
As an obvious geek, I am frequently asked about cryptocurrency and getting started. Here's all you need to know to invest in cryptocurrency.
Initially, this article was going to explain how cryptocurrency is created using words like mining and blockchain. The explanation is long, winded, boring, and a bit complicated. But, if you want to know the basics, cryptocurrency, or crypto, is "found" by solving complex math problems. It requires powerful, expensive computers and lots of them. When that math problem is solved, the crypto is awarded, then the process starts all over again. If you want more information, check out Nerdallet.
Note that this is not financial advice. Like any investment, you do so at your own risk.
To begin investing in cryptocurrency, you will need real money, research, and an app.
Investing Real Money
The biggest decision you have to make is how much money you can afford to invest.
You don't want to risk money you can't lose, just like the stock market or a casino. Many cryptos are available for fractions of a penny, and the big boys, like Bitcoin, sell for $30-$60k or more, a number out of reach for most people, but more on that later in the apps section.
Do Your Research
I can't understate how important research is, and it isn't easy. There are 15,000 cryptocurrencies currently being traded. The New York Stock Exchange (NYSE) has 2,800 stocks to choose from, suddenly making that seem simple.
Another parallel with the stock market is to buy low and sell high. In a perfect world, you can get in on the ground floor and hope it explodes.
You might want to become familiar with the word Altcoin because that's what you might be buying. Altcoins are cryptocurrencies other than Bitcoin.
Watch out for fake altcoins. There are many of them out there, and they are frequently called "rug pulls" because the rug will be pulled out from under you when the creator shuts it down.
You can browse through various Facebook pages, forums, and of course, Reddit.
Don't forget that most people's goal is not to own crypto and use it, but instead, buy it cheap, sell it high, and profit. Also, unlike the stock market, crypto trades 24 hours a day, seven days a week.
You Need an App
To purchase cryptocurrency, you're going to need an app. Numerous apps can cut down on the research frustration because they simplify the process and limit what crypto you can buy by vetting them first.
Some potential apps include WeBull, RobinHood, Coinbase, eToro,SoFi, and CashApp. Some of these apps allow you to buy partial shares, meaning you could potentially buy some Bitcoin. Some people will use Coinbase with Coinbase Wallet to manage all of their cryptos, and you're going to need a wallet if you start buying altcoins that aren't available on most platforms. Many of these apps only support a dozen or so cryptocurrencies, so if you buy an altcoin they don't support, you'll need Coinbase with Coinbase Wallet.
Buying lesser-known altcoins can be confusing. For example, one of my first ventures into altcoins is Bezoge Earth and Shiba Inu. To purchase Bezoge Earth, I had to put money into Wallet. Then, I transferred that money into Coinbase and purchased Ethereum. Then, I moved the Etherum to an app called Zerion, which I then traded for Bezoge Earth. Phew. Shiba Inu is easier, available on Coinbase and others.
However, this is a great example of the potential. I own over 400 billion Bezoge Earth. I invested $1,000. Imagine if it went to half a penny! I wouldn't be writing these articles anymore! Of course, I've watched Bezoge go to almost zero, and currently, my $1,000 investment is worth more than three times that, and it has been as high as six times my investment.
Most of these apps charge a fee, so you want to do your research. One of the reasons RobinHood and WeBull are so popular is because they have no fees.
I hope that we have helped you out. We intended to explain cryptocurrency investing as simply and briefly as possible.
Initially, this article was going to explain how cryptocurrency is created using words like mining and blockchain. The explanation is long, winded, boring, and a bit complicated. But, if you want to know the basics, cryptocurrency, or crypto, is "found" by solving complex math problems. It requires powerful, expensive computers and lots of them. When that math problem is solved, the crypto is awarded, then the process starts all over again. If you want more information, check out Nerdallet.
Note that this is not financial advice. Like any investment, you do so at your own risk.
To begin investing in cryptocurrency, you will need real money, research, and an app.
Investing Real Money
The biggest decision you have to make is how much money you can afford to invest.
You don't want to risk money you can't lose, just like the stock market or a casino. Many cryptos are available for fractions of a penny, and the big boys, like Bitcoin, sell for $30-$60k or more, a number out of reach for most people, but more on that later in the apps section.
Do Your Research
I can't understate how important research is, and it isn't easy. There are 15,000 cryptocurrencies currently being traded. The New York Stock Exchange (NYSE) has 2,800 stocks to choose from, suddenly making that seem simple.
Another parallel with the stock market is to buy low and sell high. In a perfect world, you can get in on the ground floor and hope it explodes.
You might want to become familiar with the word Altcoin because that's what you might be buying. Altcoins are cryptocurrencies other than Bitcoin.
Watch out for fake altcoins. There are many of them out there, and they are frequently called "rug pulls" because the rug will be pulled out from under you when the creator shuts it down.
You can browse through various Facebook pages, forums, and of course, Reddit.
Don't forget that most people's goal is not to own crypto and use it, but instead, buy it cheap, sell it high, and profit. Also, unlike the stock market, crypto trades 24 hours a day, seven days a week.
You Need an App
To purchase cryptocurrency, you're going to need an app. Numerous apps can cut down on the research frustration because they simplify the process and limit what crypto you can buy by vetting them first.
Some potential apps include WeBull, RobinHood, Coinbase, eToro,SoFi, and CashApp. Some of these apps allow you to buy partial shares, meaning you could potentially buy some Bitcoin. Some people will use Coinbase with Coinbase Wallet to manage all of their cryptos, and you're going to need a wallet if you start buying altcoins that aren't available on most platforms. Many of these apps only support a dozen or so cryptocurrencies, so if you buy an altcoin they don't support, you'll need Coinbase with Coinbase Wallet.
Buying lesser-known altcoins can be confusing. For example, one of my first ventures into altcoins is Bezoge Earth and Shiba Inu. To purchase Bezoge Earth, I had to put money into Wallet. Then, I transferred that money into Coinbase and purchased Ethereum. Then, I moved the Etherum to an app called Zerion, which I then traded for Bezoge Earth. Phew. Shiba Inu is easier, available on Coinbase and others.
However, this is a great example of the potential. I own over 400 billion Bezoge Earth. I invested $1,000. Imagine if it went to half a penny! I wouldn't be writing these articles anymore! Of course, I've watched Bezoge go to almost zero, and currently, my $1,000 investment is worth more than three times that, and it has been as high as six times my investment.
Most of these apps charge a fee, so you want to do your research. One of the reasons RobinHood and WeBull are so popular is because they have no fees.
I hope that we have helped you out. We intended to explain cryptocurrency investing as simply and briefly as possible.
