Introduction
I’m going over some things you need to know to get started in crypto and have a better understanding of all the opportunities this space gives you. I will also provide all the sources I recommend to get more in-depth information about the topics that seem interesting to you. This article assumes you have knowledge of smartphones and computers
What is crypto and blockchain?
The first thing you need to know before jumping in is what is crypto and blockchain actually? The basic explanation is that cryptocurrencies are digital forms of payment, and blockchain is the technology that makes this all possible. Binance Academy has a good article here about all of this I recommend reading it if you are interested in learning more about this technology.
Get started with buying crypto
Intro
To start investing in Crypto you need a place to buy coins. The easiest way is to download an app like Crypto.com, Coinbase, or Binance. You have other options but these are some of the ones I use personally. If you invest with one of these platforms you are investing using a CEX or centralized exchange. This means that the company behind this app manages everything. You don’t own the private keys of the coins you buy there so you don’t really actually own them if something was to go wrong in the exchange this is just something to keep in mind and not to scare you away.
It’s always a good option to store some coins on a [hardware wallet](https://www.investopedia.com/terms/l/ledger-wallet.asp#:~:text=A hardware wallet is a, in a secure hardware device.) like a ledger nano this way you actually own the keys to your coins. Storing coins on a hardware wallet is also called cold storage.
You can also use browser plugin wallets like metamask to store coins on this is the same principle of a hardware wallet the only difference is that a hardware wallet has an extra layer of security compared to a browser plugin wallet.
What coins should I buy?
There are a lot of options to choose from but I recommend allocating a part of your portfolio to Bitcoin and Ethereum as a foundation. After that, you can add some other altcoins (alternatives to bitcoin) to your portfolio. Altcoins have in my opinion more risk than Bitcoin. You should do some research before jumping into altcoins and read their whitepaper and learn about what they are trying to build and make a decision based on that.
What’s next?
Staking
Once you have your coins you can check if you can stake them. Staking is a way to earn interest on your crypto assets. This boosts possible future returns. You can stake on some CEX’s or start exploring the world of DEX’s (decentralized exchanges) like SushiSwap, PancakeSwap, etc. This is more complex than staking on a CEX but can provide greater returns. Before you do this you should learn how to use a DEX and learn about liquidity pools and farms.
Trading
Another way to maximize returns is to start trading the coins. Don’t day trade this won’t work out in the long term. What I mean by trading is more like swing trading. Learn concepts like Support and Resistance and use high timeframes to analyze the price chart. The main takeaway for this is to take advantage to sell on tops and buy dips. If you do this you could possibly outperform buying and holding in the long run.
Before you start trading you should know basic market analysis and create a trading plan beforehand when to enter and exit a position otherwise you plan to fail.
If you want to start with trading I recommend reading this article on Binance academy. Some remarks to know trading is hard and most people fail to become successful with it. This has to be something you really want to do and learning it takes time. You won’t get rich quick like some gurus make it look.
