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I usually have my post proceeds credited completely to my Steem Power, but I have attained a little bit of SBD here and there, and I was feeling kind of froggy, so I decided to jump into the crypto market. Okay, I didn't jump; more like tippy-toed in. I had to do quite a bit of research just to figure out how to start getting started. You can't just whip out your debit card and start buying Bitcoin. As a person with no real technology background - I am a proficient computer user, but I have very little programming knowledge - I found most of the information difficult to understand. Most of the articles were written by crypto junkies for crypto junkies. As such, I thought that it might be helpful for other laypeople like myself if I chronicle my journey here on Steemit. I will attempt to consume the writhing, complex mass of information out there, digest it, and regurgitate back up in a form that other crypto-infants will be able to process. Ya' know! Kind of like how a mother bird feeds its babies a worm. Only in this case, I am also a baby, so my digesting skills may not be that great. You can see the potential for catastrophic failure, so please heed the following warning:
The information contained in this post is not meant to be ADVICE. I am simply chronicling my journey into the crypto market in hopes that others can see the process happening and gain better insight into the questions that they should be asking/researching. If I'm being honest, it is also an attempt to elicit advice from others who know what they're talking about. If you are looking to me for advice on which investments you should make, DON'T DO THAT!! If I mention any particular exchanges, wallets, coins, etc. that I use, I will try to explain why I chose/like them, but DO YOUR OWN RESEARCH! This market is like the Wild West of the economy. You should never simply assume that someone else's information is good without researching it yourself; especially not from a noob like me.
What's So Special About Cryptocurrencies & Blockchains?
The whole point behind the crypto movement is the decentralization of the banking market. People want to be in charge of their own assets instead of lending them to a third party (the bank) and only being able to use those assets through the bank, and blockchain technology allows exactly that. And the coolest part (to me, anyway) is the built-in fraud protection. It was an ingenious invention, and before you go throwing your money around all willy-nilly, I suggest you learn how it works. I didn't understand it at first, but I found this article that explains it really well and in crypto-infant language. It is an interesting read, so I suggest taking a few minutes to check it out.
Finding The Right Exchange
If you want to get into the crypto market, you're going to have to find an exchange, especially if you're going to deal with coins other than Bitcoin and Ethereum. For example, if you want to convert your Steem or SBD to USD (or your local fiat of choice), you will first have to exchange it for some Bitcoin. Then, you you can sell your bitcoin for dollars. This can only happen on an exchange. There are a lot of exchanges out there, so you will need to do some research, analyze your needs, and decide which one best meets those needs. I found this list of exchanges extremely helpful. It contains an info-graphic of the top 40 exchanges (rated by the site based on security and user reviews) with easy-to-find information regarding location of origin, security, and how user friendly the interface is. Pay close attention to the "Buy With" column. Not all exchanges will allow you to buy in with cash; so if your investment capital is in the form of fiat paper, make sure you choose an exchange that will deal with you. Also pay attention to which coins are available on each exchange. If you plan on trading in altcoins, make sure your exchange of choice provides that opportunity. For me, I am only investing a little bit of the SBD that I have earned from here, and I am interested in the opportunity for big future gains that altcoins offer. I went with Bittrex because it will allow me to buy in with my SBD, and it offers opportunities to trade in lots of different coins. Later on, when I get a little more serious, I may reevaluate my needs and go from there.
What Is A Wallet & Why Do I Need One?
Before I began this journey, I didn't really know what a crypto wallet was. I had heard of them, but I didn't know why I would need one. Your wallet is where you will store your coin. As I understand it, you will need a different wallet for each different coin; or, some wallets allow you to store multiple types of coins, but you have separate sub-wallets (I guess?) for each different coin held within your main wallet. Now, if my understanding of this is wrong, please correct me. I'm still learning, but this is the impression that I get.
If you read the article that I posted above, you should understand how the information held within the blockchain is secured. Security problems only arise if someone is able to get into your wallet. Now, your exchange of choice probably provides a wallet that you can store your coin in; however, their wallet is probably stored on their server, so you run the risk of some wily hacker breaking in and stealing your assets. Your best bet is to keep your coin safe and secure in your own personal wallet. Again, there are many to choose from; and, again, not all wallets allow you to store all coins or provide the same amount of security.
There are a few different styles(I guess?) of wallets to choose from. There are online wallets where you sign up and store your coin on a server somewhere out in the internet; there are downloadable wallets that allow you to store your coin on your personal computer or phone/tablet; and there are hard wallets, which are actual pieces of hardware that you load your coin onto and carry around with you (or hide in your mattress). You should choose a wallet style that matches your investment goals. If you are buying for the long term hold or if you are investing more money than you can afford to lose (bad idea), then you should think about a hard wallet. They are the most secure, because no one can get to your assets without physically getting their hands on your wallet. Assuming you're careful with your computer security, a wallet downloaded onto your personal device should probably your next safest option. They can be susceptible to hacks, especially if you are not careful about where you spend your time on the internet; however, when your computer is offline, your investments can rest safe and sound. My least favorite option was the online wallet. Not only is an online wallet always online for hackers to attack, but if the host ever goes down (even just for maintenance), you will not have access to your coin.
I'm just playing to learn right now, so I don't have enough money on the line to worry too much about. For my purposes, a downloadable wallet seemed the right fit, but I wanted one that would support a bunch of different coins. I went with Coinomi. It is a mobile app that I can download to my phone and store my coin locally; it supports a long list of altcoins; and it makes me want to break out the old NES and beat Contra, again. You know the code! Say it with me!! Up, Up, Down, Down, Left, Right, Left, Right, B, A!
In Conclusion
It took a lot of research, but I think I am beginning to understand a little bit more about the crypto market. I have found an exchange and a wallet that I think will meet my short term needs, and I am ready to start playing a little bit. I am only going to risk a few SBD to start with, but once I get the hang of things, I may dump in some of my investment cash.
If you are interested in learning about the crypto market, but you feel overwhelmed with how complicated it is, follow my journey and learn from my mistakes. But, no matter what, don't take anything that I (or anyone else) says as be-all end-all advice. Always, Always, ALWAYS do your own research and make your own decisions.
ALSO,
Don't miss out on the scavenger hunt that I'm trying to get going. You'll have some fun, make some new connections, and maybe even win some SBD!! The more people who are involved, the more fun it will be and the more money you could win! So, come on and check it out!
Thanks for reading today’s article! If you're into science, nature, or photography, maybe you would like to check out some of my other recent content:
