Seize Your Bits 2: Bitcoin & Digital Currency Beginner Guide
Getting good information on how to begin with cryptocurrency, shouldn't be hard to find. We've put together a quick start guide to introduce you to digital currency.
Never risk more than you’re willing to lose!
As mentioned in our previous article, online and offline security of your digital currency is crucial too protect your investments. Remember how we stress that you need to protect YOUR currency? Well, there are many people in the digital currency world that would love to fool you out of your money.
Always make sure that you don't risk more than your willing to lose. There's free ways of getting small amounts of digital coins and even if you bought $25 in Bitcoin, you would still be able to buy and loan coins through an exchange.
Five years ago when Bitcoin definitely wasn’t worth as much as it is today, I lost only .01 BTC worth $100 today to a site claiming that I would get a large percentage back within a day or two. They had a great looking ticker with supposed addresses and interest percentages and all. Did I get my .01 back? Certainly not. This isn’t to say everything’s a scam and there aren’t ways of making money in digital currency sites claiming huge returns are scams 99% of the time.
What's a Satoshi and What Do I Get for my Money?
Bitcoin is the original Crytocoin blockchain leading to the creation of the current expanding digital currency market. Listing price for alternative digital coins are regularly displayed in Satoshi/Bitcoin values along with dollar amounts. 1 Bitcoin consists on 100 million individual units called Satoshis. 1 Bitcoin equals 1.00000000 which means if you don't have nearly 10 grand to jump into cryptocurrency, you still can get skin in the game. Investing 20 dollars for example would give you perhaps .0017500 Bitcoin.
These numbers can change and it's always best to jump in when your ready but know that that amount you have whether a full Bitcoin or not, gains value the same way one would invest in a partial share of stock.
Along with Bitcoin, Litecoin and Ethereum are the 3 most 'distinguished' coins. Litecoin was created shortly after Bitcoin and Ethereum is relative newcomer, but has sparked more interest and investors into the cryptomarkets. You can have small amount of bits of any cryptocurrency but most are obtained through buying one of these ans trafing them at an exchanges.
Where do I Get My Bits
There's three primary places that cryptocoins are obtained
- Initial Coin Offerings
allows you to buy digital currency using cash and credit. You create an account and both buy and sell Bitcoin, Litecoin and Ethereum and withdraw proceeds back into your linked account including Paypal. They also offer free $10 dollars in Bitcoin if you purchase over $100 in Bitcoin.
Is another great site for coins that aren't found on other exchanges. The only drawback is the basic UI could be confusing to someone new to cryptocurrency.
Bitshares is another digital coin with it's own exchange that has been growing in value. This site allows trades from bitshares to BTC, Bitshares to dollars as well as Bitshares to dozens of other coins.
Initial Coin Offerings are coins being offered by a new startup company promoting a new technology, app, or a million other functions. Some allow people who want to obtain coins to purchase directly to the companies site. However, if ICOs catch your eye, always research what the company backing the coin is offering before investing your physical or digital currency.
The First two require you to use cash or credit to get digital currency, but faucets are a way to get started with online currency with no money investment. Freebitco is a great faucet that gives out interest every day. For more information on faucets you can read our article here plus we will have a section on faucets coming soon.
HODL Hold On For Dear Life.
This is a a term of endearment to the millions of users in the digitally currency markets meaning that when you find the coin, exchange and methods to invest that works for you. You look to build your crytofortune worth real world money. Wallet Security can't be stressed enough, check out our article on security. Your online presence and wallets should be secured as well as your physical ones.
What Can I Do With My Digital Crypto Currency?
- Day Trading
- Margin Trading
I promote freebitco a lot because I had the same account for years and my BTC in the account never got lost and they’ve paid the 4.08% as promised the entire time. This site also hosts a faucet where you get a small amount of Bitcoin every hour. I don’t use this as my primary account though I use it as an in between to get free interest before moving BTC to buy other currency or ICO tokens as discussed in our other article. There are other sites that people rely on as ‘savings’ accounts but need to be researched more before making any claims.
Day trading can be a great method to getting more cryptocurrency. If you want to pursue this approach, I suggest you test the waters and develop your own strategy. Many traders continually buy a digital coin at a low satoshi amount and then sell for higher, which gives the trader more Bitcoin albeit possibly small profit. Whether Bitcoin fluctuates having more and more Bitcoin allows you to gain wealth but also help you buy other coins that interest you.
Like I mentioned in my experience above, I got suckered out of some Bitcoin to a slick looking site so I’ve been wary where my bits go. Normally the interest is quite low but I’ve had great returns on different coins by timing interest rates for the coins I lend at the right time.
Several sites offer margin trading. If you’re not experienced in margin trading I recommend you steering clear of this unless you understand the risks. Margin trading offers high risk, high rewards and only experienced traders should margin trade and even they should understand the risks involved.
~Never risk more than you’re willing to lose!
By entering the digital currency arena you need to remember that just like the wallet or purse you carry, your digital wallet holds your money and you decide how it’s spent. Determine your strategy on what you want to do in cryptocurrency and remember to do your research on anywhere you want to invest, send, transfer or buy digital currency and remember to keep your digital wallet safe.
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A few Reliable Faucets