It’s 2018 and millennials are still fucked. I’ve been investing in cryptocurrency for about 4 months now. That makes me an expert right? It doesn’t take a lot to learn the basics and I’ll try and outline some important things.
1. Where can I buy crypto?
If you live in the UK, the best point of entry is Coinbase. I’ve had a look around recently and over-the-counter (OTC) trades are going to cost you extra if you go through eBay or ask your friend to sell some. Registration on coinbase is easy as long as you have a picture ID. If you don’t, I’m sorry, but OTC is your only option.
2. How to avoid fees
Most people will invest small amounts and it’ll hurt. Coinbase charge £1.99 if you invest <£50, and £3.99 per £100 thereafter. That’s if you buy with a debit card. It’s worth the wait to attach your bank account and avoid fees all together. How? Coinbase have a separate exchange that has no fees if you load a fiat (real money) wallet. If you’re in the UK you have to send it to Europe and whilst that costs a small fee, it’s generally smaller than the debit fees. Do the maths and work out what works for you in this case. Of course, if you have a European account, it’s free. Once your wallet is loaded you can transfer that to GDAX. The interface for this site is quite user-friendly. Pick your crypto-poison; BTC, LTC or ETH at this time. If you buy at market it’ll cost you 0.35%, but setting up a limit order will remove these fees. All you have to do is set it 1p cheaper and you’ve got more crypto than the guy using Coinbase.
I can’t put enough emphasis on this point. Don’t just listen to me or that guy in the office that made £5k on bitcoin. DO YOUR OWN RESEARCH. Join Telegram groups, join Facebook groups, watch YouTube videos, Google. What is the blockchain? What does decentralisation mean? Why do we want control of our own money?
4. Diversify your portfolio
This one seems obvious. Don’t just buy bitcoin. Look around in those groups. Go with the herd. Buy the rumour, sell the news. A lot of exchanges are stopping new users from registering right now because they can’t cope with the traffic. It’ll get better and when it does, sign up to liqui, Binance and cryptopia. Remember not to buy things at a high point. Watch then for a bit first. Don’t just react. Investment is a long game.
5. Download blockfolio to your phone
You’re going to get obsessed with this. Set up your trades and watch your money grow (usually). There’s something pleasing about green colours, but it will probably go red for a bit after you make that first trade. Don’t worry. HODL (hold on for dear life). Absolutely do not just dump everything when it turns red. I learned that the hard way so you don’t have to.
This isn’t the end, but if you know these things you’ll make the most of your fiat and keep your portfolio in the green.