I am an amateur investor in crypto technologies. I have been paying attention to the development of blockchain-based technologies (cryptos) since Fall 2017. So, I am still new. I've had some success. I've had some failures.I'm still learning a lot and have been trying to learn from solid thinkers, such as Tama Churchouse (https://www.stansberrychurchouse.com), among others, for guidance on how to assess the crypto market and make informed decisions with the goal of finding the "Amazons," the "Apple's" of crypto technologies.
I've had a number of friends and acquaintances ask me about how best to get started investing in crypto technologies. I wrote up the following "starter-pack" process. It's an attempt to have a process that is straight-forward, sensible and, hopefully, as safe as possible.
Here's the general process for buying/investing in crypto assets (i.e. Bitcoin/Ethereum etc.):
Step 1: The first step in being able to invest in cryto currencies, like Bitcoin, is to open an account with a fiat-crypto exchange (i.e. Gemini, Coinbase).
Step 2: Transfer fiat currency (US Dollar, Euro, etc) to the exchange.
Step 3: Exchange fiat currency for crypto (Bitcoin/Ethereum).
Step 4: Withdraw Bitcoin/Ethereum from the exchange to your wallet and store (and secure).
-OR-
Step 4: Transfer your Bitcoin/Ethereum to an a crypto exchange that allows you to trade your primary crypto-currency for an alternate crypto asset.
And, more specifically, here are some specific recommendations that I'm using.
Crypto-Fiat Exchanges:
"Institutions where you can exchange USD ($) for crypto currency (Bitcoin, etc.). Crypto-fiat exchanges need to conduct KYC (know-your-customer) and AML (anti money laundering) checks on you for their internal compliance." (Tama Churchouse: https://www.stansberrychurchouse.com)
Gemini
https://gemini.com/
Example cryptos:
· Bitcoin
· Ethereum
Coinbase
https://www.coinbase.com/
· Bitcoin
· Bitcoin Cash
· Ethereum
· Litecoin
Crypto Exchanges:
Crypto exchanges allow you to deposit and withdraw crypto currencies, primarily from Bitcoin. For example, if you wanted to purchase Civic, you would deposit Bitcoin to the exchange to the exchange wallet that comes with your account there. After depositing Bitcoin, you could use that Bitcoin to purchase Civic using the exchange's online interface/web site (there's also a way to purchase an alt coin like Civic from an integrated wallet, like Exodus described below).
Bittrex
https://www.bittrex.com/
Example cryptos:
· Bitcoin Cash
· Civic
· Dash
Kraken
https://www.kraken.com/
Example cryptos:
Bitcoin and 20+ others
Binance
https://www.binance.com/
Example cryptos:
Bitcoin and 50+ others
Integrated-exchange Wallet:
"Integrated-exchange wallets (like Exodus and Jaxx) are multi-asset wallets (i.e. that provide a place to store your cryptos) that also have direct crypto-to-crypto exchange integration - this allows you to exchange cryptos from within your wallet without having to open an account with an exchange at all."
Exodus
https://www.exodus.io/
Jaxx
https://jaxx.io
I like Exodus because they've paid attention to the user interface and the developer seems to have some deep knowledge and clean code. Exodus (and Jaxx that is mentioned above) is considered a "hot wallet" because it's often installed on a computer or mobile device and is connected to the internet. It's always a risk to use it. So, you want to use it for more transactional-level kinds of asset storage (i.e. somewhat liquid and smaller amounts that you plan to use for exchanging/buying/selling, etc.) Ideally, we want to be getting our assets onto a hardware wallet or paper wallet – called cold storage: a place to keep your private key and cryptocurrencies offline.
Security Measures
Security and safety of buying, moving and storing digital assets is one's own responsibility. There aren't really any arbiters of fairness out there. Though regulation is emerging, the crypto investment space is still very like the wild west without a sheriff. No exchange functions like a credit card company that foots the bill if your credit card gets hacked.
Antivirus software
Straightforward. And, of course, make sure to update. I've heard there's a virus out there that reads a crypto wallet's address and, thereby, reroutes your crypto to their account.
Stop using the same username/password everywhere.
-- avoid the obvious: https://wpengine.com/unmasked/
--use a space in passwords is good practice: https://www.helpnetsecurity.com/2017/05/12/analysis-500-million-passwords/
-- length is far better than symbol complexity: https://password.kaspersky.com/
Use Two-Factor Authentication
-- you will need to use your mobile device in conjunction with an online login.
Gemini uses a mobile app called "Authy," which you can download from the app store.
Google Authenticator is used by Bittrex.
Triple-check the website address. Phishing is big all over the world. Check those exchange and wallet site addresses! a phisher might take "www.myetherwallet.com" and change it to "www.myetherwaltet.com" and fake us all out.
