Crypto has the potential to change lives and create millionaires, but understanding how it works is crucial. If you’re new to crypto investing or need a refresher, it can be challenging to know where to begin. This guide will walk you through the basics of getting started with crypto in 2024. It’s time to discover crypto!
Getting Started
Imagine you’re starting from zero. Maybe you’ve heard something about Bitcoin and BlackRock, or perhaps a friend made some serious cash off a dog-themed coin. Now, you’re filled with adrenaline and looking at YouTube videos to learn how to get into the crypto action. Learning about crypto is one thing, but you need to lay down some fundamentals first.
Step 1: Download Coinbase
First, grab your smartphone and download the Coinbase app. Create an account and link your bank account. Set up dollar-cost averaging into Bitcoin. This means you can invest a set amount of money at regular intervals, whether daily, weekly, or monthly. This strategy helps smooth out the volatility in Bitcoin’s price.
While there are other exchanges and apps, Coinbase is an excellent starting point. Avoid using Venmo, PayPal, or Robinhood to buy crypto, as these services don’t allow you to move your crypto around—meaning it’s not truly yours. You’ll want more control over your assets in the future.
Step 2: Educate Yourself
As your Coinbase account gets approved, it’s time to get familiar with the tools of the trade. Start learning more about crypto, and there’s no better place than right here on Discover Crypto.
If you prefer reading, head to the library and pick up “The Bitcoin Standard” or “The Infinite Machine” by Camila Russo. These books provide a solid grasp on the fundamentals of Bitcoin and Ethereum. Another great read is “Bitcoin Billionaires,” which delves into crypto’s history and origins.
Step 3: Follow Quality Newsletters
Stay updated with high-quality newsletters from sources like Messari, Lyn Alden, and Caleb Franzen. These will provide unique perspectives and valuable data. If you want a more academic approach, join the BitLab Academy for lessons and education on everything crypto-related.
Step 4: Explore Different Aspects of Crypto
Crypto offers numerous ways to get involved, from NFTs and gaming to DeFi and Bitcoin mining. Experiment with these different areas to see what interests you most. The more you explore, the more you’ll find your niche and start to specialize.
Here are some avenues to consider:
- Buy and Hold (HODL)
- Day Trading
- Decentralized Finance (DeFi)
- Airdrop Farming
- Mining
- NFTs
- Decentralized Gaming
Step 5: Secure Your Crypto
In crypto, there’s a saying: “Not your keys, not your crypto.” This means unless you have the keys to your blockchain address (or seed phrase), you don’t truly own your crypto. Coinbase is secure for trading and buying, but it holds your coins for you. If it gets hacked or shut down, your access to your crypto could be cut off.
Transfer your coins to a digital wallet that you control. We recommend Arculus for cold storage and MetaMask for hot storage. Cold wallets store your private keys offline, providing high security. Hot wallets are more versatile for trading but less secure. Both are better than leaving your crypto on an exchange.
The Bitcoin Halving and Beyond
The next Bitcoin halving is around April 17th, 2024. This event, occurring every four years, cuts the Bitcoin emission by half, creating a supply shock that often kicks off a bull run. Historically, Bitcoin has a significant price increase about a year after the halving, followed by a peak. Strategize your buys and plan when to take profits.
Taking Profits
Taking profits is essential. It doesn’t mean selling your entire position but gradually taking out portions as your investment grows. This strategy, called laddering, helps secure gains. For tax implications, consult a professional. We recommend Decrypted Tax for crypto tax questions.
Conclusion
Crypto investing can be exciting and profitable, but it’s crucial to approach it with a well-thought-out strategy. Avoid FOMO (Fear of Missing Out), stick to your plan, and remember to take profits to secure your gains. Always be aware of the risks involved and never invest more than you can afford to lose.
Disclaimer: This guide is for educational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and can be risky. Always conduct your own research and consider consulting a financial advisor before making any investment decisions.
Keep watching Discover Crypto for the latest in crypto news and analysis. Leave a comment on what you’d like us to cover next. What altcoins are you curious about? Let’s make 2024 your year in crypto!
