Getting Started with Cryptocurrency
So you’re finally making the jump and have decided to invest into cryptocurrency. I applaud you. Welcome to financial freedom! There are a number of steps I will go through in this article for you to kick off your cryptocurrency journey and achieve true financial freedom.
First Step : Invest in a Ledger Nano
A Ledger is a cryptocurrency storage device. I put this as the first step because proper storage of cryptocurrency is absolutely essential. If you do not take the steps and make the investment to properly store (custody) your cryptocurrency, you will not be in full control of your money and will not achieve true financial freedom. Buying cryptocurrency on an exchange and leaving it there is no different than keeping your money in a bank and completely defeats the purpose of cryptocurrency. When your money is in a bank, it is not your money. The bank has the ability to shut you out whenever they please, not to mention monitor and track all of your transactions. And yes this even goes for places like the United States where we all live in this false reality that we are special, our currency will not collapse and that our banks will not lock us out. They can and will and our currency will eventually collapse so prepare yourselves. It has happened all throughout human history.
Banks can lock you out and control your money. The same goes for a crypto exchange. They are the same as a bank and if you do not send your crypto off the exchange you bought it from, it is not your money. A Ledger allows you to be in full control. With a Ledger, you could hop on a plane with your money on your Ledger and transport whatever value is on it, with ease. Try doing that with cash, a bank transfer or gold. Much more difficult than simply having a USB drive in your pocket or simply sending crypto. No questions asked and can occur at all hours of the day. Banks are closed on weekends and gold and cash are hard to transport.
Step II : Register with an exchange
There are many exchanges to buy and sell cryptocurrencies on. All of them will require you to submit identity documents to deposit your native currency and trade with it. It sucks, but is unavoidable. This is the most difficult part. Getting your native currency into cryptocurrency. However, once it is in, you can move freely and do what you wish with your money, and there is so much you can do with your money once it is in cryptocurrency. Staking, yield farming, voting, liquidity providing, loaning are just a few of the things you can do and earn passive income with your crypto. More on this in another article.
Here I will list a few of the exchanges that I use and think are the best. Be aware of the jurisdiction you reside in and the laws that apply to your country. The United States has the absolute worst and strict laws so just know the laws and tax implications that apply to you:
- Binance US (use regular Binance if outside the US)
- Cash App (Best mobile app to buy bitcoin)
These are just a few exchanges and is not an exhaustive list. No I do not recommend using Coinbase or Robinhood. Coinbase is the focus of the IRS and will be the first to be heavily regulated when these inevitable regulations are put in place. Robinhood does not let you withdraw your crypto. You should never use an exchange that does not let you withdraw your crypto. They want to control you and earn trading fees from you on their platform. Fuck that.
Step III : Link a bank account and deposit funds
Ok so you have bought a Ledger, registered with an exchange and are ready to deposit funds and convert your worthless, inflating fiat currency into real, sound money that you can freely do with what you wish. Connect a bank account and follow the instructions to deposit funds. Every exchange will be very similar in this regard, so no need to explain this in too much detail. I personally prefer to use a bank account that is not my main account I use for paying bills, savings, getting paid from a job etc. but the account you use is up to you.
Many exchanges these days allow you to buy crypto without having to wait the ridiculously long amount of time it can take for a bank to clear your transaction. It can take up to 10 days for a bank to clear your transaction and your funds be available for you to withdraw from the exchange. But like I said, many exchanges allow you to buy the crypto of your choice right then and there at the current price instead of having to wait days for your bank to clear the transaction. Only once your bank has cleared the transaction will you be able to withdraw your money and do with it as you please.
Step IV : Put in an order
After you have connected your bank account, you can finally buy some of that sweet sweet crypto. There are some different ways of doing this, but I will try to keep it quite simple. Basically, there are market and limit orders. A market order is when you simply buy crypto at whatever the current price is. This typically comes with a higher fee, but will ensure you get into the market at the current price. A limit order is when you buy in at a set price. So let’s say bitcoin is trading at $10,000 (I wish) and you think the market may dip a little so you want to buy $100 worth at a price of $9900. You could put in a limit order at $9900 for $100 and if bitcoin’s price dips to $9900, the exchange will automatically fill your $100 order if it dips to this price, key word IF it dips to that price. So if bitcoin does not dip to $9900, your order will not fill. This is in contrast to a market order that would just buy in at whatever price bitcoin is currently at and ensure you get into the market.
So limit orders allow you to, potentially, get in at a better price, that is, if the price dips to where you think it will, in this case, $9900. These are the only 2 order types I ever use. Do whatever you wish, however, just know that market orders have higher fees and limit orders have lower fees.
Step V : Withdraw your cryptocurrency from the exchange
As I mentioned before, proper storage of your crypto is of the utmost importance. Not doing this completely defeats the purpose of cryptocurrency. Your choice if you want to make the investment and put in the extra work, but I, personally, want to be in full control of my hard earned money, not some exchange or bank so I think the extra work and investment is worth it.
To do this, you simply send your crypto to your Ledger’s corresponding public address. Each cryptocurrency has different addresses you can send them to, so be very careful and triple check your addresses before sending. If you send to a wrong address, your funds will be gone forever, so be very careful. I will write another article on this topic, but please reach out to me on my discord server @Saved BTC, username neuroboy#8684 if you need guidance or have questions! I would hate to hear about someone losing their money because of a mistake that can be easily avoided. I love crypto and providing guidance to those that need it, I am more than happy to help!