The initial uncertainty about Bitcoin and cryptocurrencies is something real. How to start in Bitcoin and cryptos? Yes, but, is this “real” money? Why do I need it? Is it really a good investment? Maybe is too risky. Maybe it’s a scam. Perhaps isn’t legal, perhaps it’s useless. Or it’s definitely way too complicated for your average guy.
The doubts arise, but the news as well. Bitcoin is going to the moon and you don’t wanna be left out. Bitcoin is fast and cheap as an international payment method, and it’s probably the future’s currency. Then, why not?
Let’s make some steps to learn how to start in Bitcoin and cryptocurrencies safely and with more chances of success.
Step 1: Learn about it
Time to break some myths about this forever. First thing first: Bitcoin and cryptos are totally legal in most countries, don’t worry. That includes Europe and the Americas. Second: yes, they’re real-real money. They have actual value because they’re useful and people from all around the world want to buy it.
Are they risky? A more adequate word would be “volatile”. Their prices usually vary a lot within short periods, except for the stablecoins, whose price is tied to another asset or collateral. However, this volatility can be an advantage for investments, since there are very profitable trading strategies that make people wonder how to start in Bitcoin, in the first place.
Scam? Not per se. Could it be used for scams? Yes. Very much like dollars and euros, of course. Too complicated? Not at all. You’ll barely need an online account or an app, as an electronic wallet. Beyond that, if you want to learn about how things like the blockchain work, you’ll have to put an extra mind-effort (like if you want to learn how the Internet or your TV works inside, for example).
There’s so much more to learn about this huge crypto world. So, never be afraid to search everything you can about your favorite cryptocurrency, ask questions to the community on sites like Reddit and Quora (and our blog), and stay up to date by reading the latest news. Knowledge is power!
Step 2: Trust nobody!
In the middle of your crypto-learning or even your daily life, you’ll find a lot of people talking good and bad about Bitcoin and companions. Don’t believe in one or the other. Do your own research (DYOR) based on reliable sources and different reviews, and make your own conclusions. This is an important rule for everything, and the crypto-world isn’t the exception.
Politicians and entrepreneurs can share their hate about cryptos because they don’t fully understand how they work or consider them a threat to traditional money. Celebrities can promote new tokens for Initial Coin Offerings (ICOs), without knowing if the platform is legit or a scam. An old friend of yours can recommend you to invest in Bitcoin through an amazing platform with 100% Return of Investment (ROI), just before both of you get scammed.
Thinking about how to start in Bitcoin and cryptos? Step (and rule) number two is very, very important: trust nobody! And especially if they want money from you. Read by yourself, ask in several places and if something is looking too good to be true, well, it’s probably not true.
Step 3: Make a plan
You want to learn how to start in Bitcoin and cryptos… what for, exactly? Investment? Payment method? International transfers? Another practical use? Curiosity? Believe it or not, there’s an awful lot of uses for different cryptocurrencies, even beyond the financial things.
Bitcoin (BTC) works like heaven for personal international transfers. The main offer by Ethereum and its native currency (ETH) are smart contracts and Dapps. Tether (USDT) is a stablecoin, mostly used as a store of value. Monero (XMR) aims for higher privacy, Filecoin (FIL) is building blockchain storage. With DeFi tokens like SUSHI or CAKE, you can practice the yield farming passive investments.
So, it’s up to you. What you wanna do? Probably, there’s already an ideal crypto for your needs. On the other hand, if you want to jump in just for investments and build a nice and diversified portfolio, you’ll need to think about some strategies first. Go short? Go long? How much? What is the past and what are the forecasts for those currencies? That’s obligatory reading material.
Step 4: Buy intelligently
At this point, you must have clear objectives, including the cryptocurrencies you want to acquire and what for. Then, it’d be time to find the best way to buy them, including exchange rates, fees, payment methods, security, and conditions.
Since you’re just starting in this new world, the easier way to do it is finding a good and regulated cryptocurrency exchange online. And hey, the rates are important, but the second part is even more important. They can have great rates and the lowest fees, but maybe they’re not regulated at all. So, your funds are gonna be safe? Or are gonna just be? In case of any issue or doubt, will someone be there for you? Do they have a support team?
You’ll need simplicity, security, and assistance. You know, some patient people telling you how to start in Bitcoin several times if you don’t get it at once, and solving any issue on the road. Check for their regulations, rates, and reviews. And always buy with your head, not with your greed.
Step 5: Take care, or after how to start in Bitcoin
You’re not exactly safe after you buy them, the same way you’re not exactly safe after you cash a check. There are some perils on the horizon: cryptocurrency scams, physical assaults (if the thieves find it out), malware designed to steal cryptos, and, probably the biggest threat of all, your own fear and your own greed.
The crypto-scams use to be kind of obvious and the malware and assaults are easily avoidable if you take preventive measures. After learning how to start in Bitcoin and cryptos, you should face only yourself against the current circumstances.
In crypto slang, we have two terms to define these behaviors: FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt). Both of them are usually caused by the same, despite they are contraries. News, trends, announcements, and even fake news can make the prices go up and down like a rollercoaster. So, you can be dominated by the irrational urge to buy (FOMO) or sell (FUD).
When the moment comes, don’t fall with the crowd. The crowd can be important and lead the way, but they can also misguide it. So, again: always buy (and sell) with your head, not with your greed (or your fear).
Have a nice first cryptocurrency trading!