There were multiple mentions about cryptocurrencies in recent years all across mainstream media, for several occasions. Most often the reason was a sudden and strong rise in crypto prices, new fortunes, but there were also deep price drops, huge losses as the result of hacking, controversial regulations and changes in the local and global law. It would seem obvious that most people not only know what cryptocurrencies are, but actively participate in their usage, promotion and functioning. It would seem that they know how to buy Bitcoin or get cryptocurrencies.
Well, it is not obvious at all… It is NOT EASY to start with cryptocurrencies.
There are few cryptocurrency holders. There are even fewer people who know what Bitcoin is all about and what crypts have to do with. You can of course buy Bitcoin, store cryptocurrencies securely and make transactions. However, there is a need for learning and effort to develop and expand the range of skills, because constructs behind cryptocurrencies are complicated and, worse, they change quickly.
How to start with Bitcoin and cryptocurrencies?
Get knowledge about cryptocurrencies. It will be much easier if you know English. Native languages’ internet is not an optimal source of knowledge for beginners. The best Bitcoin introduction we found was written by a branch of the US central bank. There are also many series for beginners on Reddit pages and pages of specific projects. It is very easy to get lost there. So what to do? See the simplified guide for Bitcoin and the rest of the cryptocurrencies we have collected.
Bitcoin: how to start?
Firstly, get the answer on the base question. What is Bitcoin? Proper answer: a method of transferring values based on blockchain technology.
Get answers to the questions most frequently asked by beginners. Do I store Bitcoins on my computer? Answer is: No, you only have access, via a private key, to BTC maintained by all computers in the network.
Where does the Bitcoin value come from? From the potential of using blockchain technology and adaptation among people. There are many more such questions.
Get a Bitcoin address. The easiest way to generate it safely is on your own computer.
Learn to secure the private key. Never share it with anyone. Buy a hardware wallet or generate a paper wallet and secure it with a password, or encrypt it.
Keep BTC or spend it. By keeping Bitcoins, you can treat them as a long-term investment or a method for diversifying your savings. By spending cryptocurrencies, you support the adaptation of technology.
Cryptocurrencies: how to start?
Do you know Bitcoin already? Learn more about blockchain technology and cryptocurrencies. After getting Bitcoins, you can go a step further, start exploring the world of the other cryptocurrencies. There are many methods, you can sort out token by the greatest capitalization, you will discover Ethereum and Ripple in this case. If you want to get to know Bitcoin clones, you will encounter Bitcoin Cash, Bitcoin Private, Bitcoin Gold. Are you looking for start ups with potential? Look for information about IOTA, Tron or Neo. Do you prefer a quiet, long existing projects? Litecoin, Dash or Monero have large communities and generally available knowledge bases.
Get a wallet. All cryptocurrencies besides Bitcoin, or altcoins, have their own storage technologies and methods. It is true that you can store funds on crypto exchanges, but it is not recommended for security reasons. The first step to invest in the altcoin is to familiarize yourself with the wallet, where our funds will go. It can be a hardware wallet or software installed on a computer or smartphone.
Register an account on the cryptocurrency exchange. Check beforehand if the exchange trades in the cryptocurrency you want to buy. The largest cryptocurrency exchanges, such as Binance or KuCoin, have a huge number of tokens and very low commissions. Smaller stock exchanges, such as Malta’s BitBay or BitMarket, a much smaller number of cryptocurrencies, but in exchange allow deposits in PLN or EUR.
Buy cryptocurrency of your choice for Bitcoins. Transfer funds to the cryptocurrency market and buy altcoin for Bitcoin or fiat money if the cryptocurrency exchange allows it. By the time of the transaction you became the owner of cryptocurrencies. You now have the choice of where to store it: it is best to transfer it to your wallet under your own control.
Keep cryptocurrencies in your own portfolio or spend. Transfer from the cryptocurrency exchange to your own portfolio is most likely associated with paying a commission. It is worth checking in advance what the cost of sending money from the exchange is. If you are buying for cryptocurrencies, you can also transfer the cryptocurrency directly from the exchange to the address of the store, contractor or friend from whom you buy services or products.
How to start investing in cryptocurrencies?
Investing in cryptocurrencies may seem easy, especially when we enter a long-growing market. Sometimes you can find calculations how many percent Bitcoin has risen since the beginning. However, we need to find a method for profits here and now.
A plan for investing in cryptocurrencies. At the beginning it is necessary to create a plan based on investor’s needs and expectations. What is an investment horizon? What are the expected profits? What risk can an investor accept? How will we ensure the security of the portfolio? These are just basic questions. See the instructions, divided into two parts: information for traders, that is short-term speculators and a guidebook for long-term investors.
Speculation: expected fast profits on cryptocurrencies
If you intend to speculate on the Bitcoin and cryptocurrency rates, you need the right tools. Certainly, real-time access to the price of Bitcoin, Ethereum and other cryptocurrencies, preferably on the crypto market where trading takes place, will be necessary. Tools for drawing charts and calculating indicators are very useful if you use Bitcoin’s technical analysis.
Tools that support speculating on Bitcoin:
- get access to current prices and comfortably check Bitcoin price and Ethereum price,
- create an account on the cryptocurrency market that supports traders, e.g. BitMarket with many tools for traders or Binance with lowest commissions,
- check which cryptocurrency exchanges have the lowest commissions, because when making many transactions you will spend a lot of money on fees.
Long-term investment in cryptocurrencies
If you intend to invest in cryptocurrencies for a minimum of 2 years, you are in a better situation. First of all, you will make fewer transactions and spend less on commissions. Secondly, this way is less psychologically demanding. Price drops and dips will not be a dramatic experience for you, because you’re going to keep Bitcoin for a long time anyway. Averaging is a successful strategy, buying selected cryptocurrencies for a certain amount of money every month, for example 100 USD. Distribute the amount among selected coins and tokens and don’t change your strategy.
What do you need for a long-term investment in Bitcon?
- a secure wallet, e.g. Ledger Nano S wallet or an encrypted paper wallet,
- secure cryptocurrency market, for example, trader’s friendly BitMarket,
- a spreadsheet to track progress and calculate the rate of return.
How to start mining cryptocurrencies?
If we go back a few years and look at the landscape of the Bitcoin world, we will discover that one of the easiest ways to get BTC is mining Bitcoins. It was enough to run the graphics card (earlier the CPU) and after a few weeks we could enjoy some amounts of BTC. These times are over. Bitcoin and the majority of cryptocurrencies are mined using specialized equipment, the acquisition of which is associated with the investment. If you want to learn more about mining, check out our guide and see an introduction to mining cryptocurrencies. However, there are several cryptocurrencies that can be mined on the GPU, for example Ethereum Classic.
See also if you can mine cryptocurrencies on an ordinary desktop computer, laptop or smartphone? (tldr; it is technically possible)
Although it is not so easy to start with Bitcoin, it is a way that many people have already went through, successfully. It is easier to travel the known path, following the instructions from the guide. To start, it’s enough to learn the basics of new technology. If you can explain in a few sentences what Bitcoin is and how it works, you’re on the right track. The next step is to get and secure your address and your wallet. Hence, it’s only a moment to buy coins or tokens on the cryptocurrency market. Suddenly, it turns out that the first steps were not so difficult, and what is coming is even more exciting. By late 2018, there are almost two thousand cryptocurrencies and this is certainly not the final number.
Investors love low transaction fees. Binance has special trading offer, with fee reduced to 0.075%.