NOTICE (MUST READ BEFORE CONTINUING):
Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
What Is Cryptocurrency?
Cryptography has to do with coding to keep data secure, and cryptocurrency is a digital or virtual asset that uses cryptography as a security measure. For that reason, it’s hard to counterfeit. Bitcoin is one of the first cryptocurrencies to hit the scene. It was launched in 2009 by “Satoshi Nakamoto,” a pseudonym that could be a person or a group (it was open source and peer to peer). The thing is, there’s no central agency (like the government) that issues or regulates these cryptocurrencies.
Is Cryptocurrency a Good Investment?
Some people say investing is like playing the lottery. That’s not entirely accurate, though. Long-term, broad investing, and the kind that will help you build a nest egg over time, is very different from speculative, active trading. Cryptocurrency, a volatile, unpredictable investment, falls into that category.
With active trading, you’re taking a guess at how a specific investment (or investments) will trade on a short-term basis. The goal isn’t to simply keep up with the stock market like it is with long-term investing; the goal is to make a bunch of money and get rich quickly. And you know, some Bitcoin and Ethereum investors did get rich quickly! Seems like a good deal, right? But the thing is, the price of these cryptocurrencies often swings from one extreme to another. (In one day in June, the price of Ethereum plummeted from $319 to $0.10!)
The bottom line: get rich quick schemes rarely work out well. Sure, people occasionally win the lottery, but for most of us, investing shouldn’t feel like playing the lottery. It should be a long game, allowing you to gradually build wealth over time with much less risk, so never put in more than you willing to lose as this industry is still very new and small but has a very promising future.
First you will need wallets to store your funds in
Since the start of crypto there has been a lot of stigma around how to store funds. I will, say this exchanges can go offline over night and would highly suggest storing in a wallet that you can access from your PC. When mtgox went dark nearly 0.5 of a trillion dollars disappeared overnight. The best wallets that support the currencies that I have suggested below are exodus, cardano wallet, ark wallet and verge qt wallet. It is advisable to store these wallets on a USB thumb drive to limit the reach if your computer was to get a virus. Run the installer and change the file destination to the USB of choice.
Right now that you have your wallets all set up and remember save you private keys. Ark will make you copy the 12 phrase key before it will allow you to continue to set up so save it in a word document so if you ever lose your USB you can recover the funds this step is unbelievably important and don’t continue before this step is complete. Follow the instructions below if you didn’t save these when setting up the wallets.
Open the application. On the left hand side of the wallet you will see four options below the account balance. Click on the backup option and then click the “show 12-word phrase” button. A message will pop up read the info as this is very important stuff to know about. after reading click the “show phrase” button. a list of random words will appear open notepad and type them into notepad.
Doesn’t look like there is an option to view the pass phrase after creation so before you transfer funds if you haven’t saved this you will have to create a new account and delete the previous. Had a panic attack when I couldn’t find my recovery phrase myself there… but were good ahhh.
This wallet is very slow when loading if it seems like its taking forever and continues to display a message saying “Loading block Index” don’t worry give it some time and it will eventually load. To speed the process up, Open task manager and press v on the keyboard, Right click on verge core (OSS GUI CLIENT) and select go to details, Right click on VERGE-qt.exe hover over set priority and select HIGH. When the verge client hits around the 530mb mark under memory tab and it should finish up loading.
Once in you can backup the wallet by clicking File in the top left then back up wallet save the Wallet.DAT file to you USB.
Save all this information in an encrypted winrar file for safe keeping on your USB stick. To do this create a folder on your desktop and name it what ever you want. Place your text file with all the above information into this folder along with the verge wallet.dat file. Right click on the folder and click on the winrar option that says add to archive. Click on the set password button in the lower right side above the OK, cancel and help buttons. Enter a password of your choice and enable the check box that says Encrypt file names. This ensures that if a wrong pass is entered the file names are still not visible and will ask for the pass again. That’s done now its time to buy some coins and send them to the wallet addresses that were set up during the installation of the wallets.
Now for the fun bit.
What I would suggest as a basic portfolio?
When it comes to portfolios in this space due to the volatility of most of the currencies its advisable not to hold all your eggs in one basket. The general rule of thumb as bitcoin continues to grow is to have a long term portfolio of a 30% Bitcoin / 30% Ethereum and the rest can be invested in your favorite alt-coins. I have listed a few altcoins below which give you a basic run through of what these are and how these could be great investments.
Where do you buy different coins?
Before we continue this is a good place to have a look into what coins you want to hold I have listed a few of my portfolio options that I am heavily invested in below with as short an intro video for each which explain what they are, how they are different and why they might be good long term holds. This is completely down to you and this is where it gets fun. If you don’t want to go with the same portfolio make sure you look int to currencies their wallets and the tech behind them but if you do want to go for the same coins then the wallets you have installed will be sufficient to hold all of the options below.
First off you will have to buy bitcoin to be able to buy most of the different types of alts and ethereum so to get started with that head over to Coinbase which is by far the easiest way to purchase bitcoin. Follow the tutorial below to sign up and buy bitcoin.
You will now have to create an exchange account the one I personally use is a site called Bittrex.com. Its simple and easy to use and I will include a video below on how to use it from sending coins to your account and trading on their platform. Only send the number of bitcoin that you are wanting to buy alts with to your Bittrex account as the rest will be getting deposited in you PC wallet that was stored on you USB for future gains. So send 33.75% of what you buy in bitcoin to the Bittrex account follow the tutorial below to find out how you do this.
Once you have deposited it will take around 10-60 mins for the blockchain to process the transaction make sure you use the correct wallet address as it is unrecoverable if the bitcoin is sent to the wrong address. Always make sure you triple check the first four and the last four chars and numbers of an address just to make sure its correct. Once you have deposited in Bittrex head back to Coinbase and send the remaining balance to your Exodus wallet. You can do this by heading to the wallet tab in Exodus and clicking on bitcoin. Click the receive button and you will be presented with an address. Click on the furthest left icon and it will copy this address to your clipboard. This is the address you want to send the rest of the funds in your Coinbase too. This again will take a while but it will appear in time so just let it do its thing. Once the transfer is complete you will see the bitcoin in your Exodus wallet. You will now want to exchange that into bat and ethereum so head to the exchange tab in the wallet and click on the drop down below receive and you will see a bunch of coins. If there is nothing here go back to the portfolio tab and click on the plus icon in the top right of the screen. Select a bunch of coins that you would like to add to the wallet in this example ethereum and bat and then head back to the exchange tab. You will now see these coins in the drop down menu enter the amount you want to exchange and it will tell you how much you will get for the value. Once you have read over everything you can click the exchange button and boom its done. Again this might take some time but it will eventually appear in your portfolio tab. Do the same on Bittrex and send to the appropriate wallet and everything will be sorted. You are now well on your way into this crazy industry.