Just in the last few days, when the Bitcoin price was soaring and the press and media were reporting on the increase, dozens of inquiries came to ask, which was the easiest way to buy Bitcoin safely. I describe everything in great detail in my bestseller “Cryptocurrencies simply explained“, which we recently updated to the latest version (https://geni.us/crypto_simple), but I understand that many people just want to use a short and simple guide. This is exactly what I want to give you in this blog post.
A warning first: unfortunately there are many people and companies, which offer rip-offs and scams around cryptocurrencies and want others to invest their hard earned money into get-rich-quick-schemes. Therefore, always be especially careful when people try to pressure you into an investment or promise seemingly low-risk high-returns.
Step 1: The right capital amount and timing
The question of the appropriate time is just as difficult as the amount of capital one should invest into cryptocurrencies. There is no right or wrong, however each individual must answer these questions for himself. Personally, I think that 1-10% of one’s liquid capital is a good amount to invest. If you have 10,000 USD on your side, 500 USD makes sense, for example. Why? In the unlikely event that everything is gone, you might be angry, but it is not the end of the world. However, if the 500 USD turns into 50.000 USD, you will be very happy. The reality however, will be somewhere in-between the two scenarios.
Nobody knows the right timing to invest either. That’s exactly why I recommend to halve your investment or even divide it into thirds and invest it in two or three tranches – for example 2 × 250 USD over a period. Never get tricked into running after the market, but rather wait a bit before buying until the market goes down – it always does at some point. In the crypto industry we speak of FOMO – Fear of Missing Out.
Step 2: Getting USD onto an exchange
In the second step, we select a suitable exchange, which should be reputable and charge as little fees as possible. Theoretically you have a huge number of options, but I can recommend the following three from my own experience:
Coinbase, if you like to pay by credit card: www.bit.ly/exchange_promo
Kraken, if you prefer bank transfers: www.kraken.com
Abra, where you can currently get 25 USD for free: www.geni.us/abra
The procedure for all three is always the same: You transfer your fiat money there either by credit card or bank transfer and then you have these USD on your account.
Step 3: Exchange fiat for bitcoins
Next you exchange your USD for bitcoins on the platform. This works differently depending on the platform, but should be relatively intuitive. Most of these platforms have only a limited choice of different cryptocurrencies, so called coins or tokens. The exchange I use to get access to almost all cryptocurrencies is the following: http://bit.ly/www-binance-com
All these file-sharing sites are free to register. You simply transfer one crypto currency to it and exchange it for another.
Step 4: Store your cryptocurrencies securely
These exchanges have a huge disadvantage: you don’t control your coins yourself, but you have to trust the platform. If it gets hacked or goes bankrupt, your money is probably gone. This is exactly why I recommend to secure your bitcoins or other cryptocurrencies via a hardwallet and control them yourself. The model I personally use for this is the following: www.julianhosp.com/hardwallet
Step 5: Become #CRYPTOFIT
The last step is that you get to grips with the topic a little deeper and learn to understand the market. For example, this was especially necessary at the end of 2017, when the market was sky high and it was a good time to sell. That’s exactly why I did a two hour VIP webinar, in which I not only show my own portfolio, but I also give very important tips at the time of selling etc. You also have the possibility to get your #CRYPTOFIT license there, which you can use to show that you understand this world around blockchain, cryptocurrencies and decentralization really well: https://www.cryptofit.de/bitcoin-vip-seminar-en
If you want to know more about this whole topic and also want to stay up to date, then connect with me on Social Media – You can find the links everywhere on this page.
Have fun and good investments,
Your Dr. Julian Hosp