How do I buy my 1st Cryptocurrency?
Cryptocurrency, sometimes called digital currency is more than Bitcoin. I know that may come as a surprise yet, there are over 8000 digital currencies built on a blockchain of some sort. We will discuss Blockchain in my blog.
By now you should know a little about bitcoin and maybe blockchain (if not please check my blog BlockchainPro)
so we can move into how you would make your first purchase of cryptocurrency; likely bitcoin. First you will need to find a reputable exchange that sells, buys and/or trades bitcoin. The most common platform is Coinbase, the largest place to buy crypto-assets today. You can also purchase bitcoin or other cryptocurrencies from Binance, Gemini and many other exchanges.
You will need to have your credit card ready or you can add a bank account for online (ACH) transfers; these will allow you to send and receive more funds at a given time. There is normally a fee charged by the exchange for your funds transfer into and out of the exchange. The fee depends on the amount you are transferring. I've seen it range from $3 to $15 per transfer. And the transfer will take from a few minutes to a few days (up to 5 days) sometimes. It's all digital so the network will sometimes get congested so you have to be patient.
3 Part Series on "Why Bitcoin?"
*Find the parts 2 & 3 on Youtube*
What is "Hodl"
Crypto Ticker Sample
You may wonder (with all the excitement of buying your first "bitcoin" or other cryptocurrency), what do you do with it now?
Now you are entering a whole new world of finance. The blockchain is a distributed, decentralized ledger or database that all types of transactions are made. Today we are only focused on financial or currency transactions. What is "bitcoin?" Simply put, it is internet or digital money. That is it's purpose and it serves well in it's role. Many "smart" people in the financial sector have claimed bitcoin as the new store of value since the dollar lost it's value many years ago (1971) under president Nixon. (you can find the whole story on YouTube - video "The Day the Dollar Died.")
Once upon a time the dollar (USD) was backed by gold yet, over the years that was found not to be the best bet and we saw the effects of this during 2 serious market crashes in recent history. Now "big money" is looking for a substitute and it seems that the founder of bitcoin & blockchain (Satoshi Nakamoto) arrived right on time in 2009 to submit a brilliant concept that works to take the place of gold as the store of value against any currency but, more specifically the US dollar.
That being the case, we will use the term "hodl" so that you feel that you are part of this "peer-to-peer" community (commonly referred to as "P2P"). This is because our transactions are between 2 entities without a bank or clearing house of sorts dictating how and where my funds should be handled or go. I choose to buy and I buy then if I choose to sell, I sell and that's that. Between 2 people or entities; P2P. Thus, when you make this transaction and you are not trading or spending the digital asset (bitcoin) then you will merely hold the currency in your digital wallet for safekeeping. As a bonus your digital money will be accruing value because it is within a larger system called an exchange. You can take it offline and store your currency in a hardware wallet if you choose and it will not actively accrue value yet, when you present it at a later date to convert it into the currency of your choice or spend it, whatever the prevailing rate is (higher or lower) that is what you will experience at that time.
What is "Hodling?"
This is the storing of digital assets without trading or exchanging in your digital wallet. The story goes, someone misspelled "holding" with "hodling" concerning having "bitcoin" but not spending or exchanging it for sometime. Thus the blockchain community adopted the term "hodl" as someone that just "holds" digital currency without spending or exchanging or trading it.
Yes, you can "hodl" your "bitcoin" if you choose and gain additional value by doing so. You can benefit greatly in short bursts or you will lose greatly if you are not strategic with this course of action. This is discussed offline. Also in my videos.
Find an exchange and purchase your BTC, ETH, XRP or other coin of choice.
If you are planning to purchase or transfer the digital currency then identify the sending and receiving wallet key so that you may transfer the digital currency.
If you are intending to leave the cryptocurrency on the exchange or in your wallet for hodling. No action is required except to know this strategy. (Contact me)
If you are looking to increase your wealth or benefit from this new era gold rush, contact me before taking action.