Investing in Cryptocurrency — The Beginner’s Guide
I often asked by my friends about Bitcoin and cryptocurrency — what are they, how to invest, where to buy etc. In the following paragraphs I will try to explain in an easy to understand manner and also give you some reference links for further research.
My first encounter with cryptocurrency was back in late 2018 when I launched an ICO (“Initial Coin Offering”) for a virtual reality project. I had gone great length to raise money to propel my venture to the next level. I attended several international blockchain and cryptocurrency fund-raising events in China, Macau, Hong Kong, Japan, and Korea, and managed to raise more than $1mil through VC and private investors. At that time, many technology startups had turned to ICO as an alternate source for raising capital. Bitcoin, at the time, was rallying between $6,000 and $12,000 towards the end of 2018. It was clearly the next gold rush in the 21st century. Some ICOs succeeded and many didn’t. Telegram, as an example, was raising as much as $500 million in the pre-ICO sale at a potential total token value in the range of $3 billion to $5 billion. Unfortunately, the ICO industry had collapsed in mid-2019 due to scams and strict government regulations. Bitcoin also did not survive and plummet to approximately $3,000 and the entire cryptocurrency industry had gone silent and nearly dead.
After many months of corrections and new local government policies, the crypto industry has finally bounced back in late 2019. Many countries have issued new policies to regulate the issuance of cryptocurrencies as well as buying and selling on the Exchanges. Since then, the turnover and volume of trading have increased dramatically and more importantly financial institutions have also taken a position in cryptocurrency as an investment. If you want to know the top Exchanges and turnover of different cryptocurrencies, you may find them on CoinMarketCap which is the most popular website to find out all crypto activities and valuation. Another informative website for crypto is CoinDesk that you will find the latest news, market update, industry trend, new coin offerings, and interviews etc.
Today, Bitcoin and other cryptocurrencies are considered a new form of asset class and many local governments have already accepted them as a legitimate asset on the balance sheet. The most common cryptos that are being traded on major Exchanges include:
- Bitcoin Cash
Note: You may find them on CoinMarketCap
As far as trading is concerned, there are hundreds of crypto Exchanges on the market that some are FIAT-based and others are paired up with Ethereum or Bitcoin. If it’s FIAT-based Exchange, you can deposit USD directly and trade crypto right on the same Exchange. For non-FIAT Exchange, you will have to find an Exchange that converts USD to Bitcoin or Ethereum and make a transfer to the Exchange then you are good to go. One Fiat Exchange that I’m using is Gemini and I think they charge 1% service fee for cash withdrawal. There are many such Exchanges in the United States and some do waive the service fee if you convert your USD into their own branded cryptos. If you are purely looking for trading not owning any cryptos, you can easily do that using Robinhood without any transaction fees. It’s very simple and intuitive for beginners and you can also use it to buy stocks too. I’ve been using it for more than a year now, and am quite satisfied with its performance and customer support. For those beginners who live outside of the United States, you can use many other Exchanges that offer direct deposit from designated banks and provide you an E-Wallet which allows trading right on your mobile phone. Since there are many such Exchanges, I will only name a few here for your reference that include Binance, Kraken, Huobi, OKex, and LATOKEN. For a complete list of Exchanges, please refer to CoinMarketCap for details.
If you are interested in learning how to make huge profits in a short time with cryptos, I highly recommend that you check out the following training system.
“CRYPTO ULTIMATUM” TRAINING SYSTEM GUARANTEES YOUR SUCCESS EVEN WITHOUT ANY SKILL, BECAUSE THE METHODS INCLUDED IN IT REALLY WORK! (Note: This is an affiliate link. If you click through and purchase the product I will get a small commission.)
As compare to my past trading experience with securities, forex, and gold, cryptos offer me a whole new level of excitement and attraction. Not only does it allow me to make handsome returns, but it also becomes a new form of payment method. If you do not already know, Tesla has purchased $1.5Bn worth of Bitcoin at around $34,000 (if I’m not mistaken). Shortly after, Tesla announced to accept Bitcoin as an additional form of payment on its website. So far, I primarily trade Bitcoin, Bitcoin Cash, and Ethereum simply because they have the biggest circulation and turnover making them less concentrated. However, I do buy a little bit of everything from time to time just for the fun of it. Yes, crypto trading is volatile just like any penny stock out there but there are ways you can avoid making common mistakes that come with any investing. The training system above will show you step-by-step on how to succeed in crypto investment and I think it is a great way to start especially for absolute beginners who are looking for an alternate way to make money fast.
If you are interested in knowing more about Bitcoin and crypto trading, please get in touch with me I’m more than happy to share my experience in greater depth. Thank you!