Crypto Investments 101- The Basics

If you are new to the crypto space and are still wondering how to start investing in the various crypto currencies, then you have landed in the right place. Through this article I plan to share highlights of what I have learnt about investing in this industry through my experiments and struggles over the last 3 years. In case you already are quite familiar with the crypto space feel free to let me know if I missed some point which is critical for all beginners to know.


  1. Where to Store your Crypto?

If you are thinking that accidently I missed the part about researching about which are the best crypto projects before coming to the storage part- NO, one important thing you need to keep in mind about blockchain based coins and tokens is learning how to store them is way more important than choosing the coins. Over time most of the prominent crypto projects will surely appreciate but it is essential that before making a big buy decision you familiarize yourself with how are crypto currencies stored, which options are available for you and how to transfer the coins in and out of this storage. There have been innumerable cases of people who accidently lost their coins as they were not careful about how they stored or transferred them. Some key points you should always keep in mind are:



  • Cold Storage/ Hardware wallets are the best option to store your coins

  • Trezor and Ledger are the most reputed brands to consider 

  • Always play around with small amount of coins by sending and receiving from your wallet before storing a big amount

  • Trezor Model T in my opinion is the best wallet to store Bitcoin and Ledger Nano-X is the best option for Altcoins


Incase you need further guidance to chose between Trezor and Ledger, you can refer my previous article here -> https://www.publish0x.com/crypto-projects-sams-reviews/trezor-or-ledger-which-one-should-you-buy-xvzopz


 


2. Which Crypto to Buy?


Now comes the interesting part about selecting which coins to buy. This will depend to some extent on your personal preferences, future plans, risk appetite etc. I am going to share with you what I consider a balanced approach which will guard you against unexpected market fluctuations. I have been following the following principles:



  • Always keep 50% or more of your crypto investments in Bitcoin. It has remained the leader for over 11 years and will continue doing so for the following years

  • Never invest large amounts in Altcoins as they have a much higher risk involved of failure in the future

  • Do take some calculated risks- If you identify a really promising crypto project during your research do invest small amounts which you will not regret losing (eg. $25-$50). As if you lose it will not hurt and if they explode you will make serious gains with minimal investment.


Below are articles related to some of the altcoins that I think will do well in the coming years:


Monerohttps://www.publish0x.com/crypto-projects-sams-reviews/why-monero-matters-xyjlnd


Tezoshttps://www.publish0x.com/crypto-projects-sams-reviews/is-tezos-worth-the-hype-xremgd


Cardano- https://www.publish0x.com/crypto-projects-sams-reviews/is-cardano-worth-investing-xjlrxn


 


3. How to Buy Crypto?


I think Coinbase is hands down the best platform for beginners to start investing in crypto. It is an easy to navigate exchange which takes a lot of measures to ensure quality experience for it’s users:




  • Selected Coins- Coinbase doers thorough background check before listing a coin on it’s exchange, which means the chances of scams are minimized. 


  • Free tokens- Coinbase Earn offers the chance to earn free tokens which let’s you play around and learn how to use crypto before you decide to star investing your own money


If you are planning to join Coinbase feel free to use my referral link -> https://www.coinbase.com/join/pradha_zc


 


4. When to Buy Crypto?


You will come across several videos and posts claiming to know where the market is headed and they are sure whether the market will rise or fall during the coming weeks. One thing I have learnt the hard way is that NO ONE knows what the crypto market will do next with absolute certainty as it is still a new environment, so the best approach is to identify the coins you like and keep investing regularly (eg. $100 every month). Once you have a few years experience you will feel more comfortable to invest large amounts when you see a sudden dip and have strong conviction in your coins to rebound once the market recovers.


Hope this helps clear some of the doubts you had and do let me know what topics are interesting for newcomers in crypto space.


I will be writing next about which sites and platforms are best for newcomers to gain knowledge and familiarize themselves with the crypto currencies. 


 


*Disclaimer- This is not a financial advice and always do your own research before investing in crypto.


 


Cheers,


SamBTC

COMMENT

25

preview not available Busola Akinlolu Awosika
17 Feb

Thanks for putting all of thi together, great tips in there for crypto lovers :)

17

Sam BTC
18 Feb

Thanks so much Busola :)

21

preview not available Jameson C
17 Feb

Great post! I still have so much to learn and I just love coming across well written and informative posts like this! Keep up the good work 🙂

17

Sam BTC
18 Feb

Thanks a ton Jaime! Kind words like yours make the effort put in writing the posts all the more worthwhile. really appreciate the feedback :)

30

preview not available Dotun Awosika
17 Feb

This is really comprehensive and great, love it. And thank you for this concise basis post

17

Sam BTC
18 Feb

Thanks a lot Dotun :)

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