A Minnow's Guide to Owning Cryptocurriences - The RULE OF COINBASEsteemCreated with Sketch.

in steemit •  3 years ago  (edited)

First off, let's go over some basics.

Here's a quick summary of the Crypto Market:

Screen Shot 2017-07-12 at 8.07.47 AM.png

  • According to Coin Market Cap (screenshot above), there are 810 cryptocurriences in the market as of this posting (up from 700 just a few months ago)

  • As of this posting, those cryptocurriences make up an $83 BILLION dollar cryptocurrency market (down from a high of over $120 BILLION in early June 2017)

  • About 70% (or $59 BILLION) of that market cap is held in Bitcoin ($38.9 BILLION) and Ethereum ($19.3 BILLION)

  • Most cryptocurrencies are based on a decentralized network that is founded on blockchain technology (a digital ledger that keeps track of every event and transaction)...a copy-cat of the Bitcoin model

  • Increasingly, new coins are being created on the Etheruem Network, so they are essentially piggy-backing off of a robust platform that is being leveraged and stressed.

  • Every new coin claims to be the latest and greatest technology, infrastructure, and savior to the world's biggest problems. Some are simply worthless...but get lots of funding anyways.

OK. Now that we have the fundamentals of cryptocurrencies down, here is all you need to know about trading:

Screen Shot 2017-07-12 at 8.09.20 AM.png

  • According to this site (screenshot above) there are 45 active exchanges (not including "banks" like Coinbase or Coinbase's internal exchange GDAX) that are trading over 383,000 Bitcoin in a 24 hour period

  • The most popular exchanges by volume are Poloniex, Kraken, Bitfinex, and Bittrex

  • Of those 45, there are only 29 that have any volume at all, and the top 10 account for over 350,000 Bitcoins of the total traded volume

  • There are 38 inactive exchanges that are either scams or no longer in operation

There are probably a lot more exchanges, because they seem to pop up as fast as alt coins, but you shouldn't mess with them.

Now that we have established what cryptocurriences are and how to trade them, here is what you really need to know before you invest your money.

Screen Shot 2017-07-12 at 9.46.12 AM.png99 Bitcoins claims that there are about five "brokers" of Bitcoin that are most common (screenshot above). Brokers essentially take your USD and help you buy Crypto with it.

Without question, the most popular (and credible) broker is Coinbase since it has been credited as first of it's kind. Other's have become more reputable, but Coinbase still takes the cake.

With all of that established, here is the simple guide to buying, selling and owning Cryptocurrency:

  1. Identify the amount of money that you are comfortable losing through this invest. As the riskiest and most volatile asset out there, Cryptocurrency is not for the faint of heart.

  2. Create an account with Coinbase

  3. Buy whatever coin Coinbase is offering. I call this the "Rule of Coinbase". Currently, the only coins they offer are Bitcoin, Ethereum, and Litecoin.

  4. I don't think it matters how you allocate your investment. Obviously, you can't buy as much Bitcoin as you can Ethereum or Litecoin for the same amount of money. So if you are one who like to hold "a lot" for the amount of money you have, then buy Litecoin or Ethereum.

  5. Sit on your investment for at least 3-5 years.

  6. If you have made some money and are a little more comfortable with the idea of trading, open up an account at Poloniex or one of the other "Big 4" and dabble in trading. How and what you trade is a discussion for another article.

So there you have it. If you follow the Rule of Coinbase and you sit on your investments long term, then you are likely to profit.

If you waffle back and forth and think short term, then please donate your money to a food bank because it will be better spent there.

DISCLAIMER: This is not investing advice and there are never any guarantees with any type of investments, especially cryptocurrencies. Buy, trade, and HODL at your own risk.

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Congratulations! This post has been upvoted from the communal account, @minnowsupport, by emble from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

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A very palatable guide for the beginners. Thank you man.

  ·  3 years ago (edited)

You're welcome. I'd appreciate the resteem and up vote if you think it's worth the read.

Coinbase Fees
Credit/Debit Purchase: 3.99%
Bank Purchase: 1.5%
Bank Transfer: 0% then transfer balance to GDAX for 0.3% purchases/sales.

Good recommendation!

  ·  3 years ago (edited)

Why don't you use @minnowsupport upvote. Sign up here: https://discord.gg/HYj4yvw It's free! Or contact me via steemit.chat and I will assist you.

Hmmm, not sure how to do that.

I posted your post for upvote by @minnowsupport. I see they upvoted but not much.

Thanks man! Much appreciated.

Awesome post! This will help out so many people that are new to crypto I would consider recommending and sending them to this post to read first...FOLLOWED + UPVOTE + RESTEEMED!

Thank you! Much appreciated :)