So you’ve decided to invest in Cryptocurrency but don’t know how or where to begin, follow these steps to make joining the cryptocurrency movement as smooth and possible.
1. You are going to need an account on one of the Cryptocurrency Exchanges: Coinbase, Bitstamp, Gemini, Kracken are some of the most popular. It takes anywhere from a few hours to a few days for the verification process. Some exchanges, like Coinbase will let you sign up through their app but the verification time can take just as long. Using a bank card tends to be faster than adding a bank account, also keep in mind that some banks frown on sending money into an exchange and may block transactions, search online for reviews and see what issues others who use your bank may have had.
2. You will need a wallet: Unless you plan to day trade or jump in and out of the market, you are going to need a place to store your currency once your purchase it, it is advised to not keep your currency on the exchanges, putting it in a wallet whether online or off will keep your money safe and accessible to you even if the exchanges go down. Exodus, Jaxx, Loaf, Bread and Toast to name a few are popular online wallets that can be downloaded to your desktop or phone. When you set up your wallet, you will be given a security protocal, it will either be a twelve word recovery, a two factor authenication (maybe both) or a pin number. It is extremely important that you write down or print out the twelve word recovery and keep it in a safe place as this could be the difference between a happy experience in crypto or a miserable one. Do not lose this list.
3. Once you have your exchange account and your wallet, now comes the fun part…buying your currency. Don’t let the price of these different currencies frighten you. While one Bitcoin cost (at the time of this writing) over $17,000.00 per coin, you can buy a portion of the coin. By entering the amount you want to purchase, for example $20.00 worth of Bitcoin, you can buy the equivalent amount of Bitcoin or the currency of your choice.
Side Note: Please keep in mind that buying and selling cryptocurrency will incur fees. Coinbase for example, while easy to use is notorious for having high fees. Also, some wallets like Exodus will have fees for transfering out of your wallet so the choice of wallet is important if you want to minimize fees.
4. You will be responsible for making sure the current send/receive codes are used, it would be a good idea to copy and paste the code instead of typing it out, also copying/paste protects you in cases where the code changes from one use of the wallet to the next. Because there are no many wallets out there, there is no way to fully explain how to use them, you will have to do your own research.
Side Note: Unlike traditional investing, cryptocurrency is the wild west of investing, with few exceptions there is no government oversight as we are dealing in decentralized currency that are volatile and trades on a 24/7 clock. You will be responsible for your own research, your own trading habits and you own investment ideas. Getting into the cryptospace is exciting and you can be easily lead into scams and schemes, before investing do a quick Google search to see what others have to say and stay away from get rich quick schemes. Some are more apparent than others.
A last word of caution: Only invest what you are willing to lose.