New To Me: Adventures in Cryptocurrency
COINs

New To Me: Adventures in Cryptocurrency


Many years ago I first heard about “digital money”.  I remember thinking “Why would I spend money to buy money?  Extremely volatile and seemingly only used by internet gamers; it's just a passing fad.” Four years later, I purchased my first Bitcoin on the Robinhood trading platform.  Over the past several months, I have spent countless hours trying to learn everything about cryptocurrency.  Thankfully, there are a few fantastic YouTubers providing the one thing I needed most - Information.  Without that direction, I believe I would have never invested in cryptocurrency beyond the money I lost via Robinhood.    

 

The stock market can be extremely volatile, especially the so-called “Penny Stocks.”  Gains of hundreds of percent lure investors into a black hole.  Successful investors are not typically the fortunate that hit big on these risky and cheap securities.  The really wealthy investors tend to be the Warren Buffet’s who focus on “value investing”.  

 

 

KEY TAKEAWAYS

  • Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value.
  • Value investors actively ferret out stocks they think the stock market is underestimating.
  • Value investors use financial analysis, don't follow the herd, and are long-term investors of quality companies.

https://www.investopedia.com/terms/v/valueinvesting.asp

 

 

Bitcoin and cryptocurrency is the definition of value investing.  It is far more valuable than current levels reflect.  

Why do bitcoins have value?

Bitcoins have value because they are useful as a form of money. Bitcoin has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies). In short, Bitcoin is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption. In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment.”

https://bitcoin.org/en/faq

As traditional fiat currency is being printed non-stop, Bitcoin can not be created beyond the 21 million available.  Currently there are only approximately 18 million available.  

But this is about a beginner dipping their toes in the BTC and cryptocurrency world.  I can tell you it was not an easy road.   Robinhood, my first experience; was as easy as buying stocks.  Just click buy and you are invested.  It took 2 transactions of buying and selling to realize that the hidden fees associated with buying on the Robinhood platform made it very expensive to invest.  The BTC price and chart are very similar to prices on crypto exchanges,  however when you click buy the price that you pay increases by 1% min.  The same is true for the other cryptocurrencies available on the trading platform.  With BTC at nearly $10000, that is over $100 premium.  To avoid the high fees, I purchased Ethereum, Doge, and LiteCoin.  About a week later, someone mentioned that Robinhood users dont actually own Bitcoin.  High fees and I don't actually own anything?  I began my search to buy cryptocurrency where I would actually hold the coins.  

Coinbase was my first experience with buying on an exchange.  Although Coinbase holds the private keys to the currency, it can be sent to any wallet or exchange.  Coinbase is arguably the easiest to use. It can be linked to bank accounts, debit cards, and the Coinbase wallet.  Buying, transferring, and trading are very easy.  Since then I have looked into multiple exchanges, wallets, and swapping exchanges.  

At the end of the day, I spent a great deal of time learning and my hope is to share the knowledge I acquired, provide feedback to many of the companies I like using to make them better and more widely used. I hope to see cryptocurrency utilized by everyone, the benefits are very easy to find for yourself.  No one should invest in BTC without researching it for themselves.  I wouldn’t recommend taking any persons opinion and making it your own without at the very least reading some of the FAQ on Bitcoin.com.  Additionally, there are a few YouTubers that I will recommend.  The most reliable are the ones focused on providing information over predictions.

YouTube channels I recommend:

Crazy 4 Cryptos

ChicoCrypto

DigitalAssetNews



Blockchain is my business
Blockchain is my business

Articles related to blockchain and crypto currency.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.