Hey Everyone,
This is my first post on steemit and I know a lot of people here are already hip to most things crypto, but I get asked a lot from friends, co-workers, and family how to get into this whole "crypto currency thing". I just want to share a basic guide on how to get into crypto, some security basics, and next steps to take after to trade or just hold on for dear life (HODL)
1. Get some some regular money or FIAT into a place where you can buy a common coin like Bitcoin (BTC), Ethereum(ETH), or Litecoin(LTC).
- I like using https://gemini.com/. I started with http://Coinbase.com like many of us, but their fee's and prices are high. I can easily save $40-$100 from buying on Gemini instead of coinbase. But use whatever you want. The goal is to turn your FIAT into some sort of cryptocoin. Gemini is cool because I can link up my Chase bank account and instantly deposit and not have to wait for the funds to clear. I will have to wait for the funds to clear before I withdraw crypto or FIAT though. I buy Ethereum right now, but you could buy Bitcoin if you wanted to.
The only problem as of today with BTC is transaction fees are so high that you end up spending a lot to move it around. ETH has been kind of slow as well but it doesn't cost an arm and a leg to move it.
2. Turn on 2 Factor Authentication(2FA).
- I can't stress this enough. Get the tool called http://Authy.com. Find the settings in Gemini, Coinbase or ANY site you visit (really just use it for everything!) and follow the steps to scan a barcode with your phone using the Authy app.
I lost 5 Bitcoins in 2013 because my Coinbase account got cracked and I didn't have 2FA. I brushed it off as only losing about $500, but we all know how much that would be today... Plus it is pretty cool technology and makes you feel like you have missile launch codes.
3. Get a wallet
- You do not want to keep your coins in an exchange. It might seem smart for the sake of being able to get your FIAT back a bit faster, but you don't hold the private keys there so if they got hacked you could lose all your money. Plus, having a wallet really helps your sense of ownership and understanding of this whole process. For ETH, I use http://myetherwallet.com (MEW)but I also have my own hardware wallet from http://keepkey.com. MEW allows me to keep things mostly secure and also watch all incoming and outgoing transactions and even participate in other coins or tokens. Most of the time unless I plan to quickly sell back in anticipation of a market dip, I will buy ETH and then send it to a wallet or directly to an exchange to buy some other coin (assuming I have funds that have cleared).
My Keepkey allows me to keep my coins off the internet and only accessible by plugging into my computer and entering a pin code. I am also issued a 12 word security recovery phrase that allows me to recover the data on the hardware wallet if it gets lost. Sure someone could hold a gun to my head for the pin, but life is short so DO WHAT THEY ASK!
4. Find an exchange that has the coin you want to buy.
- There are a lot of strong opinions about which exchange is best. It mostly comes down to which coin you want to buy and which coin you already own to trade. I like http://binance.com right now because they have a lot of coins, the interface is simple, their deposits for ETH don't have minimums, and I can keep a close eye on my deposits I send there with their deposit history page. So inside Binance, or any exchange, you find the coin you bought with fiat and find the corresponding deposit address. Next, copy that address into your wallet or in your exchange to send. If you are sending from an exchange they call it a "Withdraw", if you are sending from a wallet it is just called..."Send". They typically have a status page where you can watch the progress of your coin moving from where you had it to this exchange. It can take different amounts of time depending on the coin. Once you see a balance on the exchange you can now trade it for whatever coin you want. DON'T FORGET 2FA and remember to move whatever coin you buy to a wallet if available.
I don't want to tell people what to buy here because we all have our reasons and I don't want this to seem like a shill/hype post. I will let you see my blockfolio below though.
5. Keep an eye on everything
- Above is an app I use called http://blockfolio.com. There are hundreds of portfolio apps and websites our there but lately I like this one the most. It allows me to enter my USD expenses as a "sell" transaction type so I always have a clean net portfolio at the top. I also recommend you write down which exchange you bought what coin at. The good thing about blockfolio, is that you can enter the exchange you used in there as well. You can also fall down the rabit hole of http://reddit.com/r/cryptocurrency for news and http://coindesk.com for press release style news.
Just be vary careful. There are a lot of scams and fake news that will try to convince you that "Ice Cream Coin" is going to revolutionize ice cream with decentralized, peer to peer, b2b, secure, anonymous, ice cream.
That's it and thank you for your time if you got all the way through. My goal is to just send this link to people that ask the basics of how to get into crypto or even how to buy some hot new coin with no experience.