Part 3: How to make money off cryptocurrencies? (Section A) & Intro to getting started.

in cryptocurrency •  2 years ago  (edited)

This is now the official GeauxCrypto Steemit page. I have changed the name and the purpose of this steemit from a personal page to a helpful resource to those who would like to learn about crypto, especially those who reside in the LSU area. Hopefully I can help some of you learn a couple of things about overall investing & how cryptocurrencies work.

Section A: Dollar cost averaging

So, by far, the easiest, safest way to make money in the cryptosphere is dollar cost averaging and holding these big cap coins such as Bitcoin & Ethereum. What this means is just setting up an automatic payment system where you buy, for example, $50 of Bitcoin a week or a month. Using the DCA method, you are effectively lowering your risk when it comes to buying crypto, not to mention it's much easier to keep track of if you use an excel spreadsheet for instance.

So where can you buy Bitcoin? There are 3 major exchanges.

Coinbase is by far the most popular fiat-crypto exchange out at the moment. With a user-friendly interface and attractive mobile app, it's like the Facebook of crypto exchanges at the moment.

Pros

  • Very user friendly. "So-easy-your-grandma-could-do-it."
  • Account KYC (know your user) process is much faster than other fiat-crypto exchange out at the moment.
  • Can buy crypto instantly with debit card if you so choose.
  • Allows you to cash out to your bank account if you choose to stop trading.
  • Easy to use mobile app.
  • Allows for wire transfers.
  • Can choose up to 3 different cryptocurrencies to buy.

Cons

  • High trading fees.
  • Shuts down during times of high volatility.
  • No Segwit addition of Segwit.
  • Customer service is extremely slow, taking as long as weeks to respond or may not even reply at all.

Gemini exchange was introduced by the Winklevoss twins, the same ones who sued Zuckerberg for stealing Facebook.
Overall they are a solid exchange and the twins saw the positives of crypto early on and went on to develop Gemini exchange.

Pros

  • Clean interface to the old-school investor.
  • Lower fees.
  • Reliable exchange that does not crash nearly as much as GDAX or Coinbase.
  • Allows for cashing out to your bank.
  • Allows for wire transfers.
  • High liquidity and security.

Cons

  • Less intuitive to use than coinbase.
  • There is no instant buy method so once bought you need to wait a week for your coins.
  • Only 2 crypto options to buy (BTC & ETH)
  • KYC verification takes much longer than Coinbase's.

Kraken is the least used crypto-fiat exchange between the 3. They are used a lot in the traditional stock market to gauge the price of Bitcoin through Bloomberg.

Pros

  • You can trade on margin if you would like.
  • You can buy various coins on this exchange, not only limited to BTC ETH or LTC.

Cons

  • Least intuitive interface.
  • Takes over a month for account KYC verification.
  • Fees are high unless you are buying large amounts of crypto.
  • Site is known to have suffered from DDoS attacks in the past.
  • You need to reach tier 3 verification before being able to fund your account with fiat.

End of Part 3

#cryptocurrency #money #bitcoin #blockchain#ethereum #litecoin #geauxcrypto #dollar #crypto #finance #satoshi

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Kraken was very good but I received notice a while ago my accounts were being liquidated because they were not doing business in the US. I still log in occasionally because they have great metrics.

I'm not really a big fan of Kraken cause they took forever to verify me. Like over a month, which I thought was pretty unacceptable. Especially when you have companies like Coinbase who do it within minutes. But yeah, they do have good metrics.

Great article! Ive just started getting into cryptocurrency.

Thanks! Stay tuned for more! I will be posting a lot more often and really start to get in depth. A lot of this stuff now is just introductory material for my student group at my university.

Thanks for the info! Do you have a recommended exchange for smaller coins that is safe and currently accepting new accounts?

Check out my blog if you’d like, I mostly post my paintings and some other art goodies. :)

https://steemit.com/@paulaloomisart

Sure thing! I recommend using Kucoin. They are currently accepting new members and they have the exact same exchange formula as Binance. It will most likely become the "next binance" You can check them out here: https://www.kucoin.com/#/?r=27fxc and thanks! I will check out your blog.

Thank you so much for the recommendation, I really appreciate it! I’ll check out Kucoin today. :)