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Getting started with Cryptos

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Introduction

The following information you are about to read is solely based on our personal experience with crypto-currencies. In no way are we expert, nor should this be considered financial advice. We have just been around the crypto-scene longer than most people.

What we found to be one of the hardest things to do when we started learning about Crypto (and Forex for that matter) was finding the right sources. Nowadays, if you type into Google ‘’How to buy Bitcoin’’ you get a list of pages that will sell you nothing but rubbish/subscriptions consisting of content which can easily be Googled.

Therefore, we created this list of sources on where to get good, reliable, and quality information so that you get a good start into the crypto market and best of all…. its all FREE!.

Hope it helps!

 

– The Team at Thecryptotrader.io

 

 

 

 

 

 

 

General Idea


Generally, I would recommend starting with listening to these two episodes of the podcast Two Blokes Trading. In these episodes they discuss the blockchain technology, the past and future of crypto currencies. This has been the best source of information for me out of all the whole list.

Two Blokes Trading
Episode 62: Episode 62

Episode 63: Episode 63

 

Websites

Coin market cap
This is the most used and referred to website when you want to know how good a crypto currency coin is. The website has a ranking top-100 system of the best crypto-coins out there and you can see charts of each coin with its current value in EUR/USD against BTC, as well as a link to their official website.

www.coinmarketcap.com

Coin Gecko
Basically the same as the above, just a matter of preference which to use.

https://www.coingecko.com/en

 

 

 

Where to buy


Buying the crypto coins can be done at exchanges, however, do not ever store them there as these exchanges get hacked on a regular basis. You can buy them here, but directly send them to your wallet which you must have downloaded on your computer.

*More information as to why you shouldn’t store your coins directly on an exchange, seeThe Biggest Bitcoin Hacks tab”

Any coin direct
This is main website where I buy my crypto coins. The difference with this website and exchanges is that anycoindirect is much more regulated and ‘safe’ compared to exchanges. They also have a guarantee that if something goes wrong with the buying/sending coins from their website, they fully refund you (if the fault is on their side). Try doing that at an exchange?! Only thing is that they currently only offer 13 coins. Also, they not only sell, but buy these coins as well. Meaning you can sell them your crypto coins for actual Euros.
www.anycoindirect.eu

Note: Anycoindirect is a Dutch company and it is possible to pay with IDeal.

 

 

Other exchanges (where you can buy more/different coins)
I personally have no experience with buying crypto-coins on these exchanges, but I know that most my friends do and they say its alright.

When Anycoindirect does not have the crypto coin I want to buy, I go to the Litebit.eu exchange. This is also a Dutch website where you can pay with IDeal. Beware though, last summer I they were hacked twice and everyone had to change their loggin info. Again, only use exchanges to purchase coins then send them directly to your wallet.
Litebit.eu
https://litebit.eu

Other main exchanges
Binance: https://www.binance.com
Bitfinex: https://www.bitfinex.com
Poloniex:
https://poloniex.com
Bitrex:
https://bittrex.com

*Note; on every exchange you will need to verify your identity by sending them a picture of your passport and/or utility bill. This is to make sure criminals don’t use cryptocurrencies for money-laundering.

 

 

Initial Coin Offering I.C.O.

 

Initial coin offerings can be compared to the ‘kick-starter’ project. A crypto company has an idea but needs capital to get started. They let people invest in their business and will repay them later on in the crypto coin. Although this is an accepted form of raising capital in Europe and the U.S., China and South Korea banned these ICO’s as companies would publish their idea, raise the money and not putting any effort in creating the coin (thus scamming people out of their money).

In my opinion ICO’s are a bad idea, I would much rather invest in a crypto currency which is already established and known, than invest in an idea and running the risk of losing your complete investment.

On the other side, investing in ICO’s can prove to be very lucrative as you will be one of the first to receive the coin, the potential to increase in value as soon as it hits the market is very big (increases of over 100% ROI is not uncommon).

 

 

Wallets


One of the most important things is to store your crypto-coins safely. On the exchange your coins are not safe at all, as these exchanges get hacked on a regular basis. Therefor the best thing to do is to store your coins on your own computer, or on a paper (offline) wallet.

In the world of crypto, wallets can be divided into two main groups; Hot and Cold wallets. The main difference being: Hot wallets are connected to the internet, while Cold wallets are not.

Cold Wallets
Not connected to the internet.

Hardware Wallet
Similar to a USB stick, hardware wallets can be connected to your computer, coins are transferred to the hardware wallet, then disconnected and put in a safe place. Overall, these things got good reviews, yet they might be a bit expensive to buy. However, an investment in keeping your coins safe is never a bad one.

Paper wallet
Maybe THE safest way to store your coins, this is an offline wallet making it almost impossible (or at least much harder) for other people to get to your coins. How to learn how to use paper wallets, check out the Crypto Edutainment channel, he goes into detail on how to install and use a variety of wallets. The site to create a paper wallet is;

https://walletgenerator.net

Video on how to use a paper wallet:
Paper wallet installation guide

Hot wallets
Connected to the internet.

Coin specific wallet
A smart thing to do is to download a crypto-wallet straight from the official website of the crypto-coin. However, most crypto coins do not have their own specific wallet (why? I don’t know).
Tip: go to YouTube/Google and type in your crypto-coin + wallet and see what comes up, most of the time they show you exactly how to install one.

Exchange Wallet
Bad idea, do not leave your coins on the exchange wallet. These things get hacked and you are running a great risk of losing your coins.

A good interview concerning this topic can be found here:

https://twoblokestrading.com/104-emerging-markets-hacks-heists-order/ 

Exodus Wallet
A good wallet out there is Exodus, the good thing about this wallet is the fact that it supports multiple coins. Their aim is to include coins that are in the top 20 of coinmarketcap. Besides that, they also have an integrated feature that lets you change the crypto currencies you have in the wallet against other crypto currencies (swap system) against the current price of the coin. Lastly, they show you exactly how much your wallet currently is worth.

https://www.exodus.io

Storing your wallet data
Once you generated / picked a wallet, it is of utmost importance to keep the login data in a safe place. Losing the password for your wallet will result in being locked out… forever. Which is why we highly recommend using the Safeledger+. The Safeledger+ is a digital paper wallet in which one can store and encrypt all his/her wallet data e.g. log in info, pass-phrases, wallet addresses, and Two Factor Authentication (2FA) recovery codes. More information can be found here;
Safeledger+ Review

Apps


Blockfolio

A useful application for your phone is ‘Blockfolio’. This app allows the user to keep track of crypto coins you purchased and their current price in real time. It is not linked to any account on an exchange or wallet, you simply type in what you own and how many and it tells you the current total price.

 

 

Swapping coins


In the case of wanting to sell a crypto coin to buy another (to swap it), this can be easily done on the website listed below. Furthermore, this option to swap coins is also integrated in the Exodus wallet.

Shapeshift
https://shapeshift.io/#/coins

Changelly
https://changelly.com/?ref_id=f6d9fcf8b489

 

 

Coins

Currently there are hundreds of thousands of crypto-coins out there, how do you know which one to buy? The way I personally purchase coins goes as follows:

  1. Is the coin listed on Coinmarketcap.com
    Coinmarketcap narrows down the research as they only list coins that are ‘’legitimate’’
    Note: I research only coins that are listed in the top 20.
  2. Research the coin
    Know what it’s for, does the technology have a purpose in the future? Read the White Paper (business plan which can be found on the coin’s official website). Know what you are investing in.
  3. Is it a real business
    Very important, I only purchase coins that have a team working full-time on the technology behind the coin. One of the requirements is that is must have a physical building/office.
  4. Does it have a wallet, if not, can I find a wallet that supports this coin
    Another requirement is that the coin must be able to be stored in a wallet downloaded on my computer, as exchanges are a bad storage place.

 

 

 

My favourite coins (in no particular order)

NEO OmiseGo
Litecoin Monero
Digibyte Cardano
Dash Etherieum
Ontology Iota
Bitcoin VeChain

 

 

 

Mining


Mining is a process that lets the user earn a specific crypto-coin by solving a complex riddle.

In a nutshell: You set up a computer to start working on solving an extremely complex riddle/puzzle. This riddle/puzzle is the next block in the block chain, thus by solving the riddle it adds another block to the chain and making it safer. The reward for solving the riddle/puzzle is a certain amount of the crypto-coin.

This process is so intense that the computer can get extremely hot, especially if you let it run 24/7 (which is what you will need to do to make the most money) There are massive mining facilities located mainly in China and Russia, where power is cheap here and cold weather keeps the computers cool.

These ‘’mining computers’’ can be purchased at specialty stores and are usually quite expensive, not to mention the increased electricity bill at the end of the month. This being said, I personally have friends who own mining computers and they do make an overall profit as they live in an accommodation which has power and water included in the rent price.

 

 

 

Staking

A variation on ‘mining’ is known as Staking. Certain crypto coins (such as NEO) allows the user to stake their computer to the benefit of the rest of the block chain. By downloading the official wallet of a coin, you have to download their complete blockchain (this can take up to two full days of downloading), after the download your computer becomes a ‘node’ in the blockchain.

Being a Node means you are part of the blockchain thus making the whole block chain safer. The NEO company then rewards you over time by giving you NEO coins (in this case their alternative coin NEO Gas). Of course, this takes time, but you don’t have to do anything for it. The more NEO you have in your wallet, the faster it generates NEO Gas (currently worth about 24 USD).

 

 

 

Things to watch

 

Things to listen to (Mainly Forex focussed podcasts)

  • Two Blokes Trading (especially episode 62 & 63)
  • Rob Booker Trader Radio
  • Chat with Traders

 

 

 

Things to read

 

  • Palm Beach Group Report
    Is a monthly financial report also covering Crytpo currencies. Last month this report came out stating Dash was a good investment, and immediately Dash increased in value by 40%.
    People pay attention to this and it has an influence on the crypto market.
  • https://www.palmbeachgroup.com/publications/

 

  • Reminiscences of a Stock Operator – Edwin Lefèvre (Forex)
    Written in the 1920’s but still very relevant today. The book is about can be classed as a biography of Jesse Livermore, one of the greatest traders ever. Regarded as one of the best trading books to start on.

 

  • The Complete Turtle Trader – Michael Covel (Forex)
    The story of 23 complete novice investors that are picked by Richard Dennis to prove that everyone can be a profitable trader, nurture vs nature.

 

  • Market Wizards – Jack D. Schwager (Forex)
    The next thing on my reading list, heard a lot of good things about this book but have not yet read it.

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