Getting Started with Crypto: Answering Beginner FAQs
"Hi there! After your constant talk of Blockchain and bitcoin, we've decided to follow in your footsteps ... we've started reading about it, but there's a lot to wrap our heads around and we'd rather avoid making any silly mistakes if possible. So, we ask you ... do you maybe have any advice for absolute beginners?
Which exchange platform to use?
What to read and where?
Where to best get info on icos?
Keep a private wallet or a public one?
Anything else we should think about or read about or learn about? …”
Image Source: David Iskander on Unsplash
My main advice to absolute beginners is don’t let the amount of information out there throw you. There’s a lot of it and the idea of operating in a space with very little certainty and more information than one human can absorb can be overwhelming at first.
One important question which may narrow down your reading list is - why am I doing this? What is my objective, right now? (leave room for your objective to change over time) defining your objective will make it easier to search for solutions. Later, when unsure about a certain decision - go back to your objective, check in with yourself if it is being served.
Which exchange platform to use?
This probably deserves it’s own dedicated article, and as with every other question, the answer always starts with “it depends”. In the interest of conciseness, here’s my list of top criteria to consider when choosing an exchange:
Funding Options. You should use an exchange platform which accepts the currency you want to trade in. So, if you’re starting off with Thai Baht, you may find it the easiest to sign up for an exchange that accepts that as a funding method. This makes things a bit less complicated for you to begin with, so you don’t have to deal with conversions too much. That being said, you may still want to do the research on costs and ease of use with larger, international platforms - you may find that it's actually worth the conversion hassle.
Withdrawal Fees. Check what is it going to cost to get your cryptocurrency of choice off the platform and into your wallet. You will often find big differences between the different platforms and being aware of them will support your overall trading strategy.
Same goes for fiat - check what is the withdrawal fee for cash back into your bank account. Do consider this: you may not want or need to use the same exchange. You may choose to get on TDAX to buy some NEO with your Thai Baht, exchange NEO for BTC on Bitfinex, and finally BTC to EUR on Kraken.
Trading Fees. What is the additional cost for every exchange you make? I’ve noticed somewhat of a “standard” 0.1-0.25% fee on top of trades in most exchanges I use.
Here’s an article I found comparing Crypto Exchanges in Thailand, but I would also recommend doing your own research.
My personal go to’s are Kraken & Bittrex with an occasional visit on Cryptopia and HitBTC.
Consider Bitcon ATM’s. If you happen to live in (or near) a city with a bitcoin ATM, consider making a pilgrimage to that location for your crypto purchases. You’ll be charged a higher fee for the transaction but that may well be worth your privacy and bank account not being associated with a crypto purchase, even if it’s not (yet) regulated by your country of residence. Coin ATM Radar can help you find an ATM near you :)
What to read and where?
I suppose this is the trickiest part. Reading crypto often means falling into a rabbit hole of information which can take hours to days to weeks to come out of. Personally, I follow the subreddits of all the altcoins / crypto projects I’m interested in and regularly check in on Steemit for Trending, Bitcoin, Cryptocurrency posts. If I feel like a bit of mainstream, light reading, I go to Coin Desk. I personally don’t follow any individual bloggers or youtubers but I have heard from some folks it’s been very helpful to follow a “one voice” for advice. I Googled “who to follow in Cryptocurrency” and here is just one of the results.
Where to get info on ICOs?
To find out about the best ICOs what you really need is a friend who’s regularly investing in ICOs and is connected to all those secret groups who collaborate and share resources on both researching new ICOs as well as pre-sale investment. It’s my opinion that the “big money making” part of ICOs is no longer available to the common person with little investment background. That being said, I personally still make a point from occasionally taking a few hours to take a deep dive into one of the ICO listing sites, to see if there’s a project I like enough to throw some money at.
Here’s a decent list of criteria to consider when thinking of making an investment in an ICO. I try to follow most with emphasis on team composition, analysis of the roadmap and actually reading the white paper in full. I follow the same advice I once received from an investment expert about buying real estate, who suggested the first purchase should be a home I can see myself living in. I try to apply that to my crypto portfolio as much as I can.
What type of wallet should I use?
Use a wallet that’s easy to back up and difficult to get access to, depending on your own lifestyle. At the bottom of my “types of wallets I’d use” list is the web wallet / hosted wallet - basically anything which doesn’t let you have your private keys. As long as you do have your private key (and your own method of keeping them safe), the rest depends on how often and in what circumstances you think you’ll use your wallet.
Paper wallet - simple to use, very secure, good for long term (you can only withdraw once)
Mobile wallet on an unused smartphone - install a mobile wallet on an old phone you don’t use anymore and you have a poor man’s hardware wallet.
Hardware wallet - more secure than a phone / desktop app, but isn’t free and if you ask me not really necessary in light of all the other options (though I do own one!)
Mobile / Desktop / Browser add-on Wallet - simplest to use and most accessible, especially for “early days” of crypto purchases.
Remember - You can always move your crypto assets from one wallet to another with a tap of an index finger! Don’t let your memories of switching bank accounts distort your perception of moving crypto around ;)
More on choosing crypto wallets.
Well, I hope this has been helpful. Looking forward to your thoughts and comments! ♥