Bitcoin works as digital gold for the cryptocurrency markets as it is traded for other coins. These markets have only recently started reaching mass adoption so the prices are still VERY volatile.
DON'T PANIC!
Large price swings are normal for BTC(Bitcoin) and it swings in both directions just as quickly.
Other Cryptocurrencies (Altcoins) are even more volatile with bigger price swings.
Don't let these big price swings scare you out of a good investment.
When investing in cryptos it is safest to look at your investments as long term. Dollar cost averaging is the safest way to accumulate your invesment.
Dollar Cost Averaging
DCA is when you invest the same amount over a period of time in smaller buys rather than all at once. For example if you invested 100$ every week no matter what the price was.
What You'll Need
Digital Wallet
In order to store and transfer your BTC or Alts you will need a crypto wallet. There are many options out there but the best one to start with is the Atomic Crypto Wallet available on all devices. The wallet even has a trade function that allows you to exchange between cryptocurrencies right in the app.
Source to buy from
You will need to sign up for an exchange or find a private seller in order to turn your dollars into cryptocurrencies.
For Beginers:
Simple Exchange: Coinbase(Credit/Debit)
Canadian Brokerage: Canadian Bitcoins (Cash/Credit/Debit)
For People with Trading Experience:
Binance Exchange(Credit/Debit)
Bittrex Exchange(Bank Wire)
KuCoin Exchange(Credit)
Security
When dealing with cryptocurrency you have to be extra careful. Make sure to take your coins off of exchanges when you are not trading them and put them safely into your digital wallet of choice.
BACK IT UP!
Always make sure to make multiple backups of your digital wallet before transferring any crypto into it.Keep your backups somewhere safe. Never give out your wallets private keys or wallet seed phrase to anyone.
Security Tools
Encrypted E-mail Service: Protonmail
Google Authenticator App AndroidandiOS
Knowledge and Tools
The market is always changing and evolving so the more you know the better you can protect your investment.
Education
Crypto Training Videos
Crypto Chat Group
Everything you need in one place
Crypto Pro App (News, Prices, Charts, Tools)
Android and iOS
Crypto Index: Coinmarketcap(Prices, Charts, Links, Tools)
News sources
Crypto Slate
Coin Telegragh
Cryptocoin News
Youtube Channels:
Crypt0 – Crypto news and talk
Blockchain Academics - Education and Trading calls
TA with MitchRay - Technical Analysis of Cryptos and Stocks
In Conclusion
Bitcoin is a risky investment but high risks can yield high rewards just make sure to be patient. The cryptocurrency market still has a lot of room to grow specially since the most recent financial crash As a new investor I would suggest you start with Bitcoin only until you get comfortable with the price volatility. The market as a whole is clearly here to stay but some of the altcoins with lower market capital have been known to loose trading volume and become de-listed from exchanges and impossible to turn back into dollars. You can avoid taking this risk by sticking to the top 20 coins by market cap until you are more experienced and able to tell a good project from a bad one.
Thanks for checking out my post! If you liked it I plan to make another post later this week that is more in depth and appropriate for someone with more investment and trading knowledge. So give me a follow and an up vote and get ready for some more content.
*Disclaimer: I am not a financial adviser and this is in no way financial advice. Make sure to do your own research and properly asses the risks
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