This guide is a helpful attachment to the original podcast interview, 7 Step Beginner’s Guide to Getting Started with Crypto. Please listen to that podcast first and then check out this guide.
My name is Dani Amsalem and I’m the founder of a little project called Decryptionary.com
I got started with crypto in March or April of 2017 after buying a little bit of Monero and Ethereum. I quickly forgot all about it until a couple of months later, a friend told me to check out Ethereum’s price, apparently it had skyrocketed.
I was surprised to see my small investment 5Xed in value!
I made 5X my initial investment on something I didn’t understand. I knew I needed to research it some more and get a better understanding of what was making me money. It became clear to me that every website, forum, and news article was full of technical terms and crypto slang. The learning curve was very, very steep.
As I was digging through the confusion, I realized that there must be others experiencing these same problems. A few friends mentioned the idea of a dictionary, and so I decided to make one!
Decryptionary is the simplest crypto dictionary and beginner’s guide.
Decryptionary has over 200 entries all defined using super plain English. I tried to write everything in an Explain Like I’m 5 (ELI5) format.
I then created 4 visual tutorials to help beginners get started. They introduce readers to crypto, show them how I invested in my first bitcoin, show them how I diversified into other coins and how I protect my investment.
While everything in Decryptionary is aimed to help beginners and amateurs understand the subject of cryptocurrency and its technology, I am not a financial adviser. Nothing published by me or Decryptionary constitutes an investment recommendation, nor should any data or content published by Decryptionary be relied upon for any investment activities. I do like to buy and sell cryptocurrencies and own over a dozen different types, but will never tell you what to buy.1
Let’s quickly look at the word “cryptocurrency”. The first part, crypto-, is short for “cryptography”. Cryptography is computer technology used for securing and hiding information.
The second part, currency, is a common word and just means the money currently in use.
Cryptocurrency is an electronic money with technology, not governments, controlling its creation and protecting its value and users.
The digital recording of all crypto transactions is called a blockchain. The blockchain is a public, permanent, secure database. Anyone can access it. Anything can be recorded into it.
The openness and security of the blockchain passes on to the cryptocurrency it manages. Compare those unique features with the dollars and euros we’re used to.
For most people, the easiest crypto to buy is bitcoin. To buy your first crypto:
You should use the easiest route available to you.
Crypto security is an all too important subject and one not discussed enough. If you do a Google search for “bitcoin theft” or “stolen bitcoin” you will find dozens of articles where people claim to have lost many thousands of dollars worth of bitcoin.
Lost or stolen cryptocurrencies cannot be recovered.
Bitcoin itself has never been hacked. Weak user or business security was the problem.
You are responsible for your own crypto. You are responsible for safely storing your access keys to your crypto. You are also responsible for the security of your email, phone, and computer.
I’ve discovered 9 simple security actions anyone can take to reduce their chances of theft and increase their protection:
Excluding bitcoin, there are close to 1,400 cryptocurrencies available. These are known as “altcoins”, which is a contraction of “alternatives to bitcoin”.
Most altcoins were developed with a unique perspective, purpose, and value for their audience. Every altcoin trades at a different price.
I’m often asked if it’s too late to get into the crypto game. Both Matthew and I think there is both plenty of time and opportunities.
Those are just 3 of the many cryptocurrencies available. All will have their rises and falls. There are even a few that are really revolutionary.
On the other side of the coin (pun intended), there are many cryptocurrency scams. You must always DYOR, or Do Your Own Research.
To get altcoins, you must use an exchange with more options than Coinbase. Popular exchanges include Bittrex, Poloniex, Kraken, and Binance. There are many more, and with any of those, you can swap your bitcoin or ethereum many other altcoins.
CoinMarketCap.com is a great website with many tools. One tool is a list of exchanges that a cryptocurrency is available on. Click on any cryptocurrency and select the [Markets] tab. On the left hand side you will see what exchanges are trading that crypto.
Initial Coin Offerings, or ICOs, are a marketing event created by the founders of new cryptocurrencies. In an ICO, the public is allowed to invest in a cryptocurrency before it has become publicly tradable. Sometimes ICOs happen before any code has even been written.
Unfortunately, ICOs are a breeding ground for scams. Recently, the SEC went after an ICO scam by the name of Plexcoins. Apparently, Plexcoins was a very shameless scam where they promised investors a 13X profit in less than a month. They managed to get over $15 million from thousands of investors.
The important thing with researching ICOs is to:
By the end of that process, you should have a very good idea of the team behind the ICO, how likely it is that they hit their goals, how unique and valuable their cryptocurrency can become, and whether they have a good marketing plan.
Anything that is unclear or missing is a red flag.
For the more adventurous cryptomaniac, buying crypto at a low price and selling it at a high price might be interesting. This is known as “trading”.
There is massive risk in trading crypto because you can lose your entire investment if your timing is bad.
Recently, I pulled out my initial investment of over $2,000 in crypto. Less than a week later, I found that if I hadn’t have pulled my money out, it would have nearly doubled!
The emotion involved in seeing a big miss like that can be crippling. Trading is not for the faint of heart.
Cryptocurrencies are the most rapidly evolving tech I have ever seen.
The potential of blockchain technology has only been used in a handful of industries.
Here are some very popular resources both I use to stay up to date in crypto.
The biggest, underlying problem with bitcoin is not that we might be in a bubble, the increasing costs of transactions, or the delay in transactions.
Bitcoin’s biggest problem is the uncertainty.
People are uncertain about whether bitcoin will continue to exist. People are uncertain of bitcoin’s value. People are uncertain of its benefits.
The quickest way is to establish confidence in bitcoin is to distribute it to people. Once they have crypto, they will see how easy it is to own. That will trigger their interest and desire for more.
This problem affects all cryptocurrencies, bitcoin is just the face of this business.
It is our duty, as cryptomaniacs and as educators, to make sure people understand how simple, easy, and real crypto is.
You now have 7 easy steps to get started with cryptocurrencies:
You’re also aware of the major problem we all face with crypto: uncertainty. Please help cryptocurrencies stay alive by sharing the concept and helping others get started. One easy way to do that is by sharing the Crypto 101 podcast interview this is based off of.
-Dani | Founder of Decryptionary.com
1 By reading and continuing to use our site you (“You” or “Your) agree to the following disclaimer and Terms & Conditions. Nothing published by Decryptionary constitutes an investment recommendation, nor should any data or Content published by Decryptionary be relied upon for any investment activities.
Decryptionary strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions. Decryptionary cannot accept responsibility for any loss or inconvenience caused by reliance on any material contained in this site.
Please note that despite the nature of much of the material created, hosted and provided by this website, Decryptionary is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, Decryptionary strongly recommends contacting a qualified industry professional.
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