If you want to learn how to get into cryptocurrency, but you don’t know where to start, this page is for you.
Below I've listed some useful resources that will help you get started with cryptocurrency.
I hope this guide helps you - but if you need any more help, please contact me via [email protected]
1. Should You Invest In Cryptocurrency?
Before you consider learning how to get into cryptocurrency, you have to realise that this really isn't for everyone.
As with any type of investment, cryptocurrency carries a certain amount of risk. If you are going to invest, take your time, start slow and find an exchange (like Coinbase) where you just invest with tiny amounts.
If you're not sure whether it's for you, read my Should You Invest In Cryptocurrency guide.
2. Where To Buy Cryptocurrency.
When you're first researching how to get into cryptocurrency, it's really tough to know where to buy cryptocurrency - and which is the safest place to store your crypto.
Here's the websites I personally use to buy crypto:
Coinbase is great - but they only sell Bitcoin, Ethereum and Litecoin.
So if you want to trade a bigger selection of altcoins, then sign up to Binance.
They also tend to have the cheapest exchange rates and launch cryptocurrencies before most other platforms.
Also, I've written a step-by-step guide to Binance that you might want to read too.
3. Learn How To Trade Cryptocurrency.
There's so many great resources that it's actually really easy to learn how to trade crypto.
Here's some useful links that will help you get started:
A Review Of The Top 7 Best Cryptocurrency Books Of 2018 - these books teach you pretty much everything you need to know about trading crypto. They're the perfect starting place for beginners.
My course about cryptocurrency - (I actually have a sale on right now.)
My blogs which you can find listed here.
If you're investing in cryptocurrency for the long-run, it's crucial that you protect yourself from hackers and malware.
I'd recommend using hardware wallets - they're an offline way to encrypt and protect your investments without having to worry about hackers.
If you're worried about protecting your investments, here's 3 hardware wallets I'd recommend:
It's also incredibly important to protect yourself from cryptocurrency scams - you can find a great guide on this here.
5. How To Research Potential Investments.
This is by far the most important step for anyone learning how to get into cryptocurrency - especially if you're eager to put money into the market...
Above choosing a platform, finding the best coins and managing your portfolio, you must do your research if you wish to become a successful crypto trader.
Most people skip the research stage and follow spammy Telegram groups - but that's an easy way to lose your money!
So where's the best place to research your investments?
There are a wealth of cryptocurrency resources out there to sink your teeth into.
Learn The Basics.
To begin with, start by understanding crypto-technology, it's vision and what cryptocurrencies are trying to achieve.
This will increase your confidence as an investor - because you'll learn why it's such a promising technology and it's future potential.
If you want learn more about cryptocurrency, check out these crypto related books that will teach you everything you need to know.
Try to get a detailed breakdown of what cryptocurrency is, how it operates and why it’s so innovative.
Check Out Coindesk.
Once you’ve nailed the basics, Coindesk is a site that provides the latest news on cryptocurrencies.
Here you can view the latest market trends and gauge which coins fit your investment criteria.
There are countless subreddits all about crypto-trading covering strategies, platforms and recent updates.
Not just that but on Reddit you'll also find communities for each cryptocurrency - so you can find specific information about the altcoins you've shortlisted.
6. Pick Your Investment Strategy.
Before you begin investing, you should you have a plan in place - or in other words, an investment strategy.
It’s easy to get sucked into emotional trading - but this is a poor move.
Instead, lining up an investment strategy is the key to ensuring you don't fall for emotional trades or invest in low quality altcoins.
Here's a few things to think about for your crypto investment strategy.
Will You Invest Long-term Or Short-Term?
- How long are you going to invest for?
- Do you have an exit strategy?
- Do you plan to invest in crypto for weeks, months or years?
- ‘HODLing’ (Holding On for Dear Life) is just a way of holding your investments, whatever happens.
- Even during market crashes, fluctuations and ropey press releases, HODL investors refrain from selling their coins and stick it out long term.
- Alternatively, you can day trade/swing trade, buying and selling your coins day by day.
- It's all about finding out what suits your financial situation/goals best.
- Never invest more than you're prepared to lose.
- Set your maximum investment budget and stick to it.
- What profit levels do you want to achieve by investing?
- How are you going to achieve them?
- Are you going high or low risk?
7. Take Your Time.
Investing in cryptocurrency is a game of patience.
And I know a lot of rookie traders typically rush in, feeling like they'll miss out on investment opportunities if they don't.
Don't fall for that trap.
Trading isn’t for the faint-hearted and coin values are volatile. Sure, it's incredibly tempting to take an 'all-in' approach when investing. But that will backfire in the long run.
You see, the market constantly flies up and down, and it’s typically rookie traders that panic sell when the market dips - ultimately losing out.
Handling The Dips.
If the market crashes, relax (at least for a second).
Don't panic sell everything - take your time to plan your next move before you succumb to any rash decisions.
Cryptocurrency trading is by no-means a ‘get rich quick’ scheme. This is the wrong mindset!
Let me tell you what most people won't:
You aren’t going to get rich after your first few trades, and it's precisely these expectations that lead to people losing money on the market.
Well not only because of the looming prospect that the bubble will someday burst, but also because cryptocurrency is highly unpredictable.
Therefore, it's wise to invest conservatively and diversely.
Many people invest purely because they see a trending cryptocurrency that's blowing up - and fall for the 'fear of missing out'.
But this isn’t a smart approach to take:
You've got to be a little more than disciplined that that. Putting your money into an altcoin that you know very little about is never a wise idea!
8. Stay Up To Date.
The crypto market moves so fast that if learning how to get into cryptocurrency, you need to be constantly scanning for news and opportunities.
Altcoin prices change by the second - as you'll discover if you trade on an exchange. As a trader, it's crucial that you keep a close eye on the latest news about your crypto investments.
Even minor events, like a YouTube video release or a Tweet, can cause the market to rise or fall within minutes.
Also, there's a vast amount of information to be learned with regards to cryptocurrencies.
There are a multitude of resources available if you’re interested in expanding your crypto-knowledge. From subreddits to YouTube videos, sponge as much information as you can about cryptocurrencies and you’ll be sure to make the most out of your investments (see my research section earlier in this guide).
9. Optimise Your Investment Strategies.
Finally, it’s really important to reflect on your trading decisions, analysing what you did right and what you can do better next time.
By this I mean that it isn’t unwise to take a step back and evaluate what you've learned so far.
- Look at how your decisions have fared throughout your crypto journey.
- Take a look at the performance of your specific investments.
- Compare your profit/loss levels to the rest of the market.
- Is your current investment strategy working?
- How much have you earned on your investments so far?
- Is this in line with your goals?
- Are there other ways to invest that would increase your profits?
Why Should You Evaluate Your Crypto Investment Decisions?
If you don’t stop to reflect on your cryptocurrency journey so far, you run the risk of stagnating and making the same mistakes over and over again.
By analysing your trading history, you'll become a better investor - and therefore enjoy more success in the future.
You should be constantly looking for ways to improve - so don’t be afraid to switch up your approach from time to time.