Cryptocurrency Trading/Investment 102 - First Step
A question I received recently is if I had $50 a month where should I start dabbling in crypto? Well, my first response I thought of was , would you be ok going to the atm, withdrawing $50, and throwing it in the trash each month? As much as I believe in crypto this could be the harsh reality we wake up to tomorrow if the stars align and crypto becomes illegal or worthless. If you don't like the sound of this take that $50 and put it in your 401k or other retirement account. If you're ok with walking into a casino and putting $50 a month on 10 in roulette then we can keep going.
SOURCE
I feel like i should disclose I have never purchased crypto with fiat. I have "earned" it through faucets, forums, reddit, and steemit. I am not a financial advisor and am just providing my opinion below.
Select 1 or 2 Cryptos
Go to Coin Market Cap and look through the top 10 or 20 coins and find one coin that you like two at the most. Then spend the next day or two researching the coin. How does it work, why are you interested in it, how long has the coin been around, are there any negative articles about said coin and why are there problems? Learn as much as you can about the coin and then if you want to invest continue to the next step if not repeat the process. Be suspicious of all good or bad articles that you read. People could just be trying to bring the coin up or tear the coin down based on there own personal gains.
Once you find your coin click on it, for this example were going to take a look at Monero (XMR). The first thing you should look at is the price. If you're trading in USD you should focus on the dollar amount or if you're planning on trading with Bitcoin the BTC value, in this case 0.01769ish. The second is the 24 hour volume. If this volume starts to get low it will be harder to trade, but if you're trading coins in the top 10 or 20 you shouldn't have to worry about this. Circulating supply is important as if there is a low number of coins this could make the value of the coin seem higher than a coin like Ripple (XRP) that has a ton of coins. Four is the meat and potatoes of the coins and where you should spend a majority of your time researching the website, reddit activity, white paper, etc.
If you scroll down a little further you'll see the markets tab. This tab is important because it will show you on what exchanges the coin is traded and with what volume. Again you'll need to determine if your trading with USD (bitfinex) or BTC (poloniex or bittrex).
Warning, be sure to research exchanges as well. In crypto history a lot of money has been "stolen/disappeared" off of exchanges. If you plan on only doing a few trades a month it is smart to take whatever crypto your not trading actively off of exchanges. I use bittrex, but don't trust it any more/less than any other exchange. Remember if you don't own the private key the crypto really isn't in your hands.
Great advice for someone like me just starting in crypto
Thanks!
Your welcome
Would I, could I, should I 😁 I let the trading for my husband. I don't have the guts to trade and certainly not the patient to sit in front of computer as trading takes time and brain in a way or two. I don't have those 😂
He showed me the screen to trade steem and whatnot and I gave up right away. Too confusing for me.
I will just blog I guess 😊
Blogging is great! You don't need that much time to do the trading. It the HOURS of research on each coin every day that really takes a lot of time! Keep up the blogging!
Yep! That's what I meant. Reseaaaaaarrcccchhiiinnng. If my husband who does trading can come out of his workroom with headache, imagine me 😂😂😂😂
Yeah blogging is definitely the best most consistent way to make crypto for me so far.
"would you be ok going to the atm, withdrawing $50, and throwing it in the trash each month" That's sound advice for all investing. Never bet what you cannot afford to lose! Also, I'm not a financial adviser but I have heard that it is a better idea to pay off all of your debts before you think of investing!
Umm that depends on the interest of your debts. With low interest now days. The s&p 500, since it's creation, has increased in value 6-8% yearly on average. If you're only paying 3% on your loan I'd say max out your retirement first, but that's just my opinion.
I follow the thinking that investments are a risk, paying off debts is a guaranteed return.
Hey! This is super cool, i just saw this in the promote section of the discord and had to read it :o I never knew all of this!! where did you find it out?? Also followed you and hope you want to check out some of my content and follow back if you like it :)
Months of reading and watching YouTube videos.
I've used the early version of the bitcoin cash machine when times were good, but meetups are the best place to get started with Bitcoin. My faucet earnings from a few years back still only amount to $36 lol
I think I was tipped a few dollars of dash Reddit back in the day that's now worth over $100.
I appreciate the advice, I'm still pretty new to all of this. :)
I just started two weeks ago and thanks to a lot of osmosis from being in steemit, I don't find it all that daunting to really dive into. This was a very useful post though.
I try to do light research on the unique elements of a currency, it's recent trends and what people are saying about it. I do that for 3-4 coins a day. I've yet to read any white papers but I will certainly do that if I plan on investing a lot into anything, so far I've only invested 100 steem into litecoin btc dash and eos.
I also ask lots of questions to friends who know their stuff. I don't find it to be much of a risk because i have earned it all on steemit, which i have faith in but is also a risk as far as "will steem remain valuable?”