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First, we would like to say hi and welcome you to this fast-growing space. In this ‘new to cryptocurrency starter pack’ of 2020, we will provide you with some of the most essential links, tools, and tips to help you get started with cryptocurrencies in the best way possible.
Ok, let’s explore the cryptocurrency starter pack
1 ) Learn about different cryptocurrencies
2 ) How do cryptocurrencies work?
If you are interested to learn more about how cryptocurrencies work from a technical and conceptual point of view – read our guide to cryptocurrencies which will break down the most important parts are and the blockchain technology behind. If you are looking for an easy to digest guide to learn about what blockchain is to visit this page.
3 ) Wait there are more cryptocurrencies than just Bitcoin?
And they are designed for different purposes. Some cryptocurrencies are meant to be sent between people and to pay for services and products. A bit similar to how we use cash today (USD, GBP and EUR fiat currencies) where you pay other people or companies with them.
Others are completely different, like Ethereum which for example is a smart contract blockchain and applications platform, and it has its own cryptocurrency called Ether (ETH). Usually, people call Bitcoin the original and all the other cryptocurrencies for altcoins.
4 ) Get started with Bitcoin or other cryptocurrencies
If you are new to Bitcoin and cryptocurrencies and reading this cryptocurrency starter pack guide, then you might want to find out how you can start buying either Bitcoin or some other cryptocurrency that you heard about.
Fun facts about Bitcoin:
- Did you know that the creator of Bitcoin is unknown to the world? Nobody knows who is behind this new revolutionary technology and digital currency – all we know about the person or group is that they are known under the pseudonym Satoshi Nakamoto
- Did you know that Satoshi Nakamoto owns about 980,000 Bitcoins to a value of about $9.7 billion? And the estimated total value Satoshi holds in different cryptocurrencies amounts to over $10.2 billion (Bitcoin is valued to about $9990 at the moment of writing this.
- There will only ever be 21 million Bitcoins in total. Will you be one of the fortunate ones to own one whole Bitcoin?
5 ) Useful tips if you want to buy Bitcoin
- How to invest in Bitcoin – the beginner guide
- The best Bitcoin and cryptocurrency wallets
- Where you can spend your Bitcoins
- Best ways to convert Bitcoin for cash
6 ) What should I not do when buying or selling cryptocurrencies?
Everyone makes mistakes when they are inexperienced, we did, all the experts have done their fair shares of mistakes, and you most likely will make a few too. But don’t worry about that, as it’s part of the learning experience.
Be smart about investing in cryptocurrencies
- Don’t invest more than you are willing to lose. Don’t get over your head and spend money meant to go for your rent, mortgage, food or bills. That’s not the smart way of investing
- Be cautious about tips, investment opportunities and new ‘friends’ that you meet online. If someone has a way to make several hundred or thousands of dollars per week, ask yourself why they would want to share that money with others?
- Try and learn from others, read on forum like Reddit/CryptoCurrency, Twitter, Telegram, and Facebook and other places where people are willing to share tips and ideas
- You can also use this very long guide of useful tools and sites about crypto to learn even more
Read about 8 common mistakes that crypto beginners make and become even smarter
7 ) Where do I actually buy Bitcoin or other cryptocurrencies?
Ok to make it super simple you buy cryptocurrencies including Bitcoin at cryptocurrency exchanges, like Binance, KuCoin, Coinbase, and others. They are websites where you (usually) buy and sell cryptocurrencies with other individuals from around the world. The ones we mentioned above allows you to deposit money from your bank and then buy cryptocurrencies directly at their website.
Learn more about the different cryptocurrency markets and how to best trade, invest and just, in general, be more crypto savvy.
The process is quite simple:
- Deposit money via bank transfer, credit or debit card
- Go to the exchange view of for example Binance set the bid price you want to pay
- Wait until someone accepts your bid price
- Done – now you should store your newly bought cryptocurrencies at a safe wallet
We have created this simple step by step guide to cover who you get started with cryptocurrencies in an easy way – a cryptocurrency starter pack wouldn’t be particularly good without one!
More guides for getting started with cryptocurrencies:
8 ) Learn about how you can actually earn money via cryptocurrencies
Like we said above there are a bunch of not so genuine promoted ways where people say you can earn free money with crypto, a majority of the time they are scams or just won’t work. But there are ways where you could earn money starting today.
Ways of earning money with crypto
- Write about crypto, maybe you want to start a blog like this one, maybe you can start a podcast or Youtube channel providing others with interesting crypto content. You can also earn money by writing at Steemit and Uptrennd
- Trading cryptocurrencies. Like trading stocks or commodities there are ways you can earn money via buying and selling cryptocurrencies. The concept is quite easy, sell for a higher price than you bought (including fees). But doing it is a bit more tricker. Learn about trading cryptocurrencies.
- Mining Bitcoin or other cryptocurrencies are a great but very difficult way to earn money with. You can’t just use your home computer anymore to mine Bitcoins. You need a specialised mining rig like the Antminer to have a chance of earning via mining
- You can buy some cryptocurrencies and stake them – another method than mining cryptos where you earn rewards with new cryptos. Find out which cryptocurrencies are available for staking here.
Find more ways of earning money with cryptocurrencies.
9 ) Do you need to pay taxes for your cryptos?
Depending on the country you live in you might have to pay taxes if you make any gains from cryptocurrencies.
Meaning if you buy 1 Bitcoin for $10,000 and then sell that Bitcoin for $12,000, you have then made gains of $2000 which you might need to pay taxes for.
It doesn’t work like this in every country and there might be occasions where you are liable and not liable to pay taxes, talk with your national tax agency to learn more. We have also written this guide on taxes for cryptos in 2019
10 ) Be aware of the scams and hacks
Like in the non-crypto world there are plenty of scams and hacks around, people or organised groups trying to get hold of our money.
Of course you need to be a bit street smart and use your wits to stay safely away from them. Don’t deposit money into sites that seems dodgy or have a lot of poor reviews. Read our guide on protecting yourself against scams and hacks.
We hope you enjoyed this cryptocurrency starter pack blog post. Hopefully you are ready to dive into the world of crypto right now. If you have any questions feel free to leave a comment below.
11 ) Get the best deal possible
Everyone wants a discount or pay the lowest price possible for the most value. Sure sometimes we might want to pay extra for that luxury item. But when it comes to cryptocurrencies and investing that doesn’t hold any truth.
For investing we want to buy cheaply and sell for a lot more.
But don’t forget to check the trading volume. There need to be enough sellers for you to buy of course!
Other popular blog posts and guides:
- What is a Cryptocurrency?
- Crypto really need to fix these 6 things before mass adoption can happen
- 10 Best Proof of Stake coins of 2019
- How to invest in Bitcoin the beginner guide
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that wants to see better and smarter products and services that makes our lives better and easier