The Best Way to Get Started
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What is the best way to get started investing in Cryptocurrency is a common question for beginners. Cryptocurrency is relatively new, volatility is standard, security and self ownership is crucial and you can easily make or lose a fortune in a short period of time. Cryptocurrency offers so much potential so ensure you start your Portfolio off safely and securely.
Arrange Storage and Security Before Buying
Having solid security in place to protect your assets is critical. Cryptocurrency is novel, exciting and offers an opportunity to take full control over your assets. Having control means taking responsibility. Your Cryptocurrencies security and safety is reliant on the measures you put in place. Make sure you start your portfolio correctly. When you plant the seeds, do everything right, your crop will flourish.
There are two aspects mentioned here. Storage and security. Storage is a wallet that only YOU hold the private keys for. This is not an exchange, nor a platform. There are many different types of wallets out there that you can use, however I use two.
I have a Ledger Nano because they are one of the most reputable, secure and state of the art products. They are infact, the first and only certified hardware wallet and as such you can rest safe in the knowledge that your assets are protected. Although you can store more than 1250 different Cryptocurrency assets on your device, the small memory size will mean you will want to limit the number of Cryptocurrencies on each Nano. I use mine primarily for long term storage for Bitcoin, Ethereum and my erc-20 tokens. You can also pick up a bundle package which includes both a Ledger Nano S and Ledger Nano X. This is currently available for a special discounted rate until the 17th February, check out the special here. You can purchase a 3 pack of Nano S or a 3 pack of Nano X all month. Always buy direct from the website. Purchasing second hand is akin to giving someone else all your banking details and hoping they never decide to use them.
A Ledger may take time to arrive, or you may not have the funds to purchase one immediately. This is not an excuse to leave your Cryptocurrency on an exchange or delay getting started. The other main wallet I use is Exodus. Exodus is fantastic and free. It is very user friendly and secure as well as supporting a wide variety of coins. It's also easy to use on the go.
Once you set up wallet you'll soon see your back up mnemonic phrase. A mnemonic phrase is like an ultimate password. You can lose the device, have your computer or phone stolen and theoretically means you would lose your access to the assets. When you successfully store your mnemonic phrase this means that you can very easily regain access to your assets.
This is where the security aspect comes in. Securing that mnemonic phrase is critical. At a minimum you should consider copying the phrase down and storing it at two different locations securely. Another option is using a tool such as CRYPTOTAG. CRYPTOTAG is the premium solution for the storage of your Cryptocurrency. When you purchase CRYPTOTAG, you receive titanium plates that can be punched or stamped with the details of your mnemonic phrase. These titanium plates are literally bulletproof, corrosion, pressure, heat and cold resistant – they even come with a life time guarantee. This product is fantastic for your peace of mind and asset security.
Make Your Purchase
Once you are familiar with your wallet it's time to make your Cryptocurrency purchase. Most people use an exchange such as Coinbase for their first purchase. If you are in Australia I would recommend Coinspot. If you are in New Zealand, Easy Crypto. For Africa check out Nairaex and for the Philippines Luno. If you would prefer purchasing from another person more directly, the leading company is Local Bitcoins, or for Asia and the Caribbean check out Remitano. Always make sure you use a major or reputable exchange.
Most exchanges are similar in their set up and requirements. When you first sign up you will need to confirm your email address, create a password and often provide identification confirmation. You should also set up Google 2Factor Authentication or similar (the exchange will walk you through the steps). Any exchange must follow the Anti Money Laundering (AML) and Know Your Customer (KYC) requirements for the countries they operate in. Sometimes you simply need a photo or copy of your government ID such as drivers licence or passport, at other times they will request you to hold the ID with a dated and signed paper as a selfie that you upload. To learn more about Getting Started, download my PowerPoint for free here.
Once you have set up your account you will then need to fund it. You often have multiple ways you can fund it such as credit card, bank transfer, POLIpay or even as a recurring or one off debit that makes regular contributions easy. Some exchanges will automatically purchase the Bitcoin or other Cryptocurrency at the market price at the time of the transfer. Most exchanges will give you the option to choose when to make your purchase at market value, or alternatively to create a buy order. A buy order is where you state you wish to buy x.xxx of the asset when it at xxx price. Using a buy order has lower broker fees and can make it easier to buy at prices you want to spend, but can be frustrating if the market doesn't reach the price you want when you want it to, or difficult to make regular payments if you get caught up in trying to buy at the perfect price. There is no perfect price except in hindsight.
Once you have your Cryptocurrency, transfer it to your wallet. You can do this by going to your private wallet and clicking on your coin. Then click receive. Copy the address. This is your private address. I recommend pasting and storing it on a spreadsheet or email so you can have easy access to it if necessary. Next go back to the exchange, click on the coin you have bought then click send. Paste that address and send. You often have to confirm the transaction via a link that is sent to your email address.
Be Consistent and Add Regularly
Consistency in most things in life is hard but it's also how the most progress is made.
Now you have made the decision to add Cryptocurrency into your portfolio it's important to have a plan and implement it consistently. Make your plan yours.
Focus primarily on Bitcoin, especially at first. Limit your exposure to riskier coins, keep the Cryptocurrency portion of your portfolio only a portion of your overall portfolio. Invest in platforms only after doing your due diligence and don't over invest in any platforms let alone riskier/hyip ones. Limit your Cryptocurrency held on an exchange – if you have coins on an exchange they should be there because they are being actively traded or because you are not intending to hold them for long there.
One tool you may want to consider using is CoinTracking. CoinTracking have a variety of plans including a free one, which helps track your Portfolio for you. This is so helpful especially come tax time! Check out CoinTracking here.
Stick to Your Plan
You decided to get involved in Cryptocurrency for a reason. Remember why and keep your plan in mind. You will have ups and downs in life and Cryptocurrency but when you stay educated and stick to the plan that works for you then you will reap the rewards.
Remember, this is still an emerging market. If you keep your focus to the mid to long term, keep it a relatively low percentage of your overall portfolio and avoid being heavily overinvested in riskier coins, then you mitigate risk and retain your peace of mind in a volatile and exciting marketplace.
If you are interested in highly customised Portfolio Plans that is based around you and your unique requirements combined with one on one support, check out my 3 month Portfolio Plans which are currently available at first ever significant discount of only $50 for the month of February only.
Something for Everyone
The great thing about Cryptocurrency is that there is truly something for everyone. If you are feeling overwhelmed and would like a step by step guide that is tailor-made for you then consider a 3 month Portfolio Plan. You're welcome to get in touch to discuss any questions and join my Facebook Group Crypto All in All.