Bitcoin, where to start: the first steps to take to get closer to the world of cryptocurrencies

By Roberto D. | CryptoFarm | 13 Feb 2020

Those who want to discover bitcoin often don't know where to start, that of cryptocurrencies is a complex world, which is difficult to approach if you don't have the right reference points; in any case, the community is committed to facilitating this path for beginners and this article aims to be a contribution to this "battle".

We will therefore explore the various ways that a neophyte can choose to start discovering bitcoin and get closer to the world of cryptocurrencies; first let's say that there are at least three different ways that can be pursued: mining, trading, hodling.

Below we will try to define the disadvantages and advantages of these three different strategies.

Bitcoin, start with mining

Choosing to start approaching bitcoin and cryptocurrencies through mining is certainly the most complicated way to follow; unlike what happened at the beginning of blockchain technology, today mining cryptocurrency requires precise skills that few have.

To be clear, although I have been in the world of crypto for almost four years now, I wouldn't dream of starting to mine; the reason is that due to the high cost of energy for many it can be a disadvantageous situation.

The risk, in other words, is to mine at a loss, in practice what would most likely happen is that the cost of mining would exceed profits; many could consider the possibility of investing in a small home system to power their mine with solar power, but even here the risk of not being able to amortize the investment in the first 3 years of activity is quite high, which, to be clear, would cause costs to exceed revenues.

If you don't have a little bit of computer skills, honestly, I don't think it's worth trying.

Start with cryptocurrency trading

It is an intermediate way, which still requires the acquisition of skills in different sectors, but which is not as difficult as in the case of mining.

The advice is to start by acquiring a bit of trading skills, learning how to read graphs, understanding how the main indicators and oscillators work, learning how to correctly track supports and resistances.

To do this the easiest way is to open a demo account on one of the many existing regulated trading platforms.

Here we do not trade cryptocurrencies, but we operate on regulated markets; however this allows us to start getting familiar with the trading activity, testing some strategies, without risking anything and without having to spend money.

In this way, when we open an account on a cryptocurrency exchange and start trading seriously, with real money, we will have already consolidated a minimum of experience.

All this, of course, is not enough, and it is likely that at the beginning, thanks to an understandable enthusiasm, we end up losing all of our investment (it happened to everyone when we started, I burned 90% of my funds in the first three months of trading); that's why we all advise beginners to never invest more money than they are willing to lose, for the first time, therefore, it may be okay to start with a small sum, I started with € 100, so I'm not sure I tore my hair out when I lost a large part of this sum, but I understood those losses as a form of training and an opportunity to learn from my mistakes.

Then you need to know the technology, study the various currencies existing on the market, starting with bitcoin and then expanding to the main altcoins (Ethereum, Basic Attention Token, Tron etc.).

Discover bitcoins through hodling

This is the easiest thing ever, it simply consists of accumulating bitcoin by buying it on exchange platforms or earning it through faucets (at the end of the article there will be links to get a bit of bitcoin and altcoin for free).

Many people started like this, buying a few tens of euros from time to time and moving them to their wallet; those who do not want to spend from their own pockets can use special sites that offer satoshi (bitcoin fractions), to do simple operations such as clicking on banners, playing online, reading mail.

Obviously those who follow this strategy will need a wallet, to start the ideal is to avoid third-party services, you can install it on your computer electrum, which is much lighter than bitcoin core (the official wallet) and unlike hardware devices it's free.

In this way you can start to become familiar with this technology, without spending anything and gaining a little something when the price of bitcoin touches a new historical maximum.

I hope I have been useful to even one person who will read this article, for any additional information you can safely comment on this article, see you next time!

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