Got my first Bitcoin at $2237 Content Writer, Blogger, Marketing Consultant
Whether you like it, make a living out of it, hate it, or ignore it, undeniably crypto is everywhere.
It is here to stay and the foreseeable future involves money-making using Cryptocurrency. It is not an art anymore, nor too challenging to comprehend.
For most crypto traders, crypto is a passion and for some, it is an addiction.
It counts how you play with it.
Certain moves bring you the anticipated luck while some can make you scratch your head. If you know what you are doing, you are good to step into a world where investing is not rocket science.
While I can't list everything you need to know or do to be a pro in crypto here, let me list some valuable insights that'll assist you if you are new to the crypto world.
You can potentially master a new practice quickly and effortlessly adapt to it if you can observe these 5 stages:
The awareness stage is the first time you hear about Bitcoin or any other cryptocurrency that did a minimum of 2x to somewhere like 300x within months, weeks, or days. Sounds like a hoax? It is a common occurrence in the crypto market.
Visit Coinmarketcap everyday gainers and losers section to see for yourself.
There is another practical explanation for this stage from my personal experience. I saw an article in a local newspaper somewhere in 2017 about 'What is bitcoin?' Is it a scam, or is it worth a try? Well, those who tried have made a fortune for themselves.
Those trillions of dollars in Bitcoin and significant support from prominent financial institutions and personalities like Mark Cuban, Elon Musk, and VISA or Paypal accepting crypto is just the beginning.
Now that you know about Cryptocurrency, what is your excuse?
The ship is sailing but, will you be on board? In this stage, you hunt through Blogs, YouTube videos, scroll millions of Tweets in a day, or maybe look for a course if you are eager to know. I would recommend you look for reliable and ethical sources and consult with friends in crypto or follow the trend for some time, but don't just hop in to buy one until you know where to buy from.
Once you know that you are ready, the next step is to learn where to buy and store your crypto or digital assets and which one to buy.
There are various centralized crypto exchanges where you can buy your 'First Crypto,' but you are probably coming in at such a time where regulations are all over.
I would suggest you go for LCX, one of the most consumer complaint and regulated crypto exchanges out there. You may also opt for a more local crypto exchange or a platform where you can easily convert fiat(i.e., your Local Currency ) to crypto and let it sit for a while. You can even exchange your crypto for stable coins / digital currency like digital Euros on LCX.
LCX is pioneering a blockchain infrastructure bridging the gap between traditional monetary systems and the fast-moving trusted technology landscape.
If you have made up your mind about a particular crypto exchange to choose to buy these digital assets, the next concern is where to store them?
If you trade more often and want to save money while making a good profit, a centralized exchange is the first option. However, if you intend to keep it in a vault, go for decentralized software wallets like Metamask, Trust Wallet, etc.
It would be best if you started by doing small trials before storing more significant values. Also, ALWAYS keep your seed phrase, also called private key safe and secret (don't even share it with your better-half if she/he has a habit of stealing), which you get when creating a software wallet. It might not look significant, but if you lose this, you lose what's inside, so keep your wallet safe at all times.
I would still recommend keeping it on an exchange or hardware wallet like Ledger or Trezor, which you can get from Amazon or eBay.
You might think of Bitcoin and Ethereum, as they have had their peaks.
However, I support Ethereum and projects based entirely on Ethereum along with some Multi Blockchain projects in DeFi, also known as altcoins like Matic, Razor Network, Celo, Reef, Uni, Aave, Polkadot, Solana, BNB, and some stable coins like USDC or USDT to grab some future opportunities and early-stage projects as a ready option for quick buys.
Polygon (previously Matic) and Razor are still early. Nevertheless, they have incredible potential, in my opinion, as these projects are the future of Decentralized Finance, one (Matic) a Layer 2 solution connecting the multi-blockchain ecosystem for various use cases and Razor as an Oracle solution.
At this stage, you must learn or know that whitepapers are a thing just like regulations and compliance is a thing for crypto exchanges.
The most crucial step is to evaluate your purchase decisions because once you push the buy button and sit for a day, it will show its true colors. I have been trading for almost 3 years, and I still experience FOMO and end up buying some newer projects.
Some turn out good and some bad. Some scams also come along the way as promising, and evaluating a scam is not easy. (P.S. I am not a financial advisor)
Disclaimer: Do your research and due diligence before investing in crypto. It is risky and rewarding, but it depends when you get in, and most importantly, trust yourself more than you do others, unless you have a financial advisor a call away, which I am not, nor any YouTuber.
If you have made up your mind about a specific first or next Cryptocurrency, take a baby step and buy small. By that, I mean not more than 5% of what you make in a month.
Do this for the next few months until you are sure or can invest the kind of money you are willing to invest (as in forex and stock exchanges) on your risk capacity.
Yes, you can lose, and people with weary hearts would not make money in crypto. Also, if you are a couch person, you might not be ready to get in. Unlike the stock market, crypto is a 24-hour job! You might get obsessed with checking the price charts more than you open your Instagram, Facebook, Twitter, or TikTok.
So, start slow, and have multiple experiments to amass a lot of experience. Also, don't buy or sell what you don't believe in, and don't invest in something if you think it will help you make 2x in a day; eventually, it can. Thus our community says HODL or hold your investments, and one day they could change your life forever.
You don't lose until you sell, and some projects take a year or more from the TGE (token generation event) before they become famous. A well-sounded dedicated team behind a project is a tremendous first clue always.
Adopting, you may have become well-versed with crypto at this stage, but some around you might have stepped down early. They might be scared to invest due to a lack of information or knowledge. Almost 65% of virgin investors don't understand how to invest, resulting in a loss of opportunity.
Eventually, they end up spending their savings on their wedding or hospital bills. If you are fortunate to get in now, it is still early. Let me tell you why; Bitcoin was just $1 a few years back, and several other cryptocurrencies cost less than $1 today. Who knows what time has in store for everyone.
Imagine Cryptocurrency as the internet or computer of the 90s; not everyone believed in it. Netflix was founded in 1997 when the internet was a luxury to have, and data packs did not exist. Digitization is the future. We have seen one such evolution with the mass adoption of OTT platforms resulting in the quitting of regular entertainment channels post-pandemic.
Regulations have played a significant role in the growing adoption of digital currency / digital assets/crypto/altcoins. They all are the same thing but exist for you to get a taste of it.
However, a potential ban in some countries like India has built uncertainties around investing in crypto and brought the Investor community from diverse geographies to fight back and show the strength of unity. Crypto is now at ease in India.
Several countries, including India, are still trying to bring regulations and are consulting with countries that already regulated Bitcoin and other cryptocurrencies.
Another example that has touched the hearts of many crypto believers and gives another good reason to regulate crypto is that recently, with the pandemic crisis at its peak in India, the Indian crypto community started a crypto relief fund to help people in need of oxygen and other covid essentials. A few big names worldwide in the crypto community have come forward to donate. The best thing about crypto is its transparency.
The application of Blockchain and Cryptocurrency are in their infancy. Are you next in the queue to witness the future of money and technology?
Disclaimer: All opinions shared in this article are that of the author and they do not count as investment advice.