10 Things I Wish I Knew Before I Started Investing In Crypto

Here are 10 things that I wish I knew before I began crypto investing. I hope this helps you to save some time and frustration, especially if you are new to crypto or feel stuck. #Knowb4Ucrypto

1. I Don’t Have To Buy A Whole Bitcoin To Own Bitcoin. I thought it was like buying stock and thought I had to fork over thousands of dollars to own it. Each Bitcoin contains a subunit called satoshis. One Bitcoin contains 100 million satoshis. So investing as little as $5 dollars allowed me to buy into bitcoin and reap the benefits without breaking the bank.

2. The Difference Between A Cryptocurrency And A Token. I thought they were all cryptocurrencies. But there is a key difference, cryptocurrencies are built on their own blockchain. For example, Bitcoin is a cryptocurrency that has its own blockchain, whereas Shiba Inu is a token since it is built on the Ethereum blockchain. Well, why does this matter? Cryptocurrencies like Ethereum and Bitcoin tend to be more valuable, a part of the value is that other projects build on top of these blockchains, thereby increasing demand for the underlying asset and increasing the price.

3. How To Navigate Crypto Purchase Restrictions. Some of my bank accounts had restrictions that barred me from making purchases so I learned how to buy crypto from different fiat on-ramps and transfer it. Other times it was my location that was the issue. Just note that there may be restrictions based on the state or country you live in. Let’s say you live in New York; an exchange needs a Bitlicense to legally offer crypto to New Yorkers. The easiest way to learn if you are restricted from an exchange is to try signing up.

4. There Isn’t One Exchange Where I Can Buy All My Crypto. I hold crypto on multiple exchanges and multiple wallets because of this. This forced me to learn how to use a DEX, read CoinMarketCap, and learn the crypto cycles to know when and where to buy.

5. Transactions Are Immutable. I knew it but I didn’t quite understand this. One of the key elements of the blockchain and its security is the fact the transactions are immutable, they cannot be changed. I sent some crypto to another wallet that never made it to my intended recipient so now that I understand the immutability aspect, I am much more careful.

6. Gas Fees Are Not Fees From The Exchange. These are network fees that keep the blockchain running. These fees are paid to nodes, like crypto miners, as a reward for verifying blocks on the blockchain. It’s the nodes, with their intricate network of computers and IoT devices, that power the blockchain and allow it to be decentralized.

7. The Difference Between A Non-Custodial Wallet And A Custodial Wallet. When crypto is held on an exchange, like Coinbase, it’s typically held in a custodial wallet meaning the exchange is the custodian and has possession of your crypto. A non-custodial wallet, like Exodus, means you own that crypto and have actual possession and only someone with the private keys to that wallet can access it. Meaning, no one can take your crypto away from you. It’s like having a Swiss Bank Account on your phone or desktop.

8. I Can Use Dollar Cost Averaging To Invest. When I initially, started I would buy all at once. It wasn’t till I connected with seasoned crypto investors about this method for firming up my position in solid crypto projects, like Bitcoin or Ethereum. They advised that purchasing regardless of price over time and setting up a recurring payment with whatever I could afford would help me to acquire a crypto stockpile over time.

9. The Importance Of Social Media In Crypto Investing. I underestimated the power of social media and crypto. Social media plays a major role in the success or failure of a new crypto coin and can drive the price up or down. Many of the most successful meme coins, like DOGE, Do Only Good Every Day, and Shiba Inu were able to build community and capitalize off of social media. Over time I learned to keep up with news via social media and follow the right influencers in the crypto space.

10. How To Do My Own Crypto Research Before Investing. This is a common acronym that I heard on different forums, DYOR, Do Your Own Research. When I began crypto investing, I just bought Bitcoin; I stayed away from DEFI. I didn’t know about reading whitepapers, using Coingecko, and going into telegram groups and discord channels to do my research.

This list is just a few of many the things I wish I knew before I started crypto investing because it was frustrating, time-consuming, and challenging to overcome these hurdles. In the end, it was worth it.

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Originally published at https://www.linkedin.com.