ā¼Beginners Guide / Lets Find Out Togetherā¼
Heard about Bitcoin and Ethereum or the insane gains of Meme Coins like Pepe Shiba Inu, Bonk and want to join the ride āļø
Digital currencies have been around for over a decade now, but only in recent years have they become popular. While scrolling the web and reading about crypto you can easily get the impression that this is theĀ fast lane to becoming rich.
Well, it probably can be. But there are some important things that you should know. After a boom in 2017, a sell off of most cryptocurrencies rang in the big cryptocurrency crash in 2018. The price of Bitcoin fell by about 65 percent. Nevertheless, since February 2019 Bitcoin raised again from USD 3.441 to USD 61.374 the All Time High (ATH) to date before dropping to USD 44.568 .Crypto had a massive bull in 2020/2021. Long story short,Ā this is a highly volatile marketĀ in which some people lost money and others have managed to become rich.
So what are the things that you should make yourself aware of āļø
Get an idea of the crypto market
What are coins, what are tokens and what is the difference between both? Right now, cryptocurrencies can be split into the major categoriesĀ PaymentĀ like Bitcoin,Ā InfrastructureĀ like Ethereum,Ā FinanceĀ with yield farming tokens like Aave,Ā ServicesĀ like Siacoin andĀ Media & EntertainmentĀ like Star Atlas. You will stumble over terms likeĀ DeFiĀ andĀ NFTs, addĀ Meme coinsĀ to complete the list. Get into those terms before jumping into the world of crypto trading.
1. Learn about cryptocurrency.
What is it? How does it work? What are the different types of cryptocurrencies? What are the risks and rewards of investing in cryptocurrency? There are many resources available online and in libraries to help you learn about cryptocurrency.
2. Choose a cryptocurrency exchange.
A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies. There are many different exchanges available, so it's important to choose one that is reputable and has a good track record. Some popular cryptocurrency exchanges include Binance, and Kraken.
3. Fund your account.
Once you have chosen an exchange, you will need to fund your account so that you can start trading. You can do this by linking your bank account or credit card to the exchange.
4. Choose a cryptocurrency to trade.
There are thousands of different cryptocurrencies available, so it's important to choose one that you are interested in and that has the potential to grow in value. Some popular cryptocurrencies to trade include Bitcoin and Ethereum.
5. Start trading.
Once you have chosen a cryptocurrency to trade, you can place buy and sell orders on the exchange. It's important to understand the different types of orders available and how they work.
6. Store your cryptocurrency safely.
Once you have purchased cryptocurrency, you need to store it safely. You can do this by using a hardware wallet or a software wallet. Hardware wallets are the most secure way to store cryptocurrency, but they can be expensive. Software wallets are less secure, but they are more convenient to use.
7. Invest only what you can afford to lose
You will read things like āThe earlier the betterā or āHigh risk, high gainsā. Whether this is true or not, never invest more than you can afford to lose. Donāt mortgage your house. Nor do I recommend you borrow anything to invest.Crypto is a highly volatile market and a profit is not guaranteed.
š THEN, another question will pop up šØ
When lambo š¤āļø
Especially when reading about the recent cryptocurrency gains in 2020 and 2021 some might be led to the impression that you can easily win in the short term. LikeĀ investing in crypto and getting instant gratification. But thatās the big exception, for sure.
So, Are you ready āļø
Crypto is by far a very interesting investment opportunity with high Are you readyāļø
Crypto is by far a very interesting investment opportunity with high potential.Ā So DYOR, donāt FOMO, ignore the FUD, grab a basket of coins / tokens, buy and HODL.Ā Wake up rich in a couple of years.
