Blockchain ABC’s — Beginners guide step 2
So, two weeks more time spent on everything Blockchain and I believe I have the basics down pretty good as well as an investment strategy I am going to pursue. So to continue on the last post I am going to outline the steps I took over the past few weeks, the tools/apps I am using and other relevant info/data I picked up on my travels.
After you have taken the steps to secure yourself and your computer it is time to start buying some bitcoins but before doing so we need a wallet first. While there are many options I chose the following:
- Exodus → Desktop multi-asset wallet. This is a good wallet to start with. It is simple in use and has worked great for me. (Please, do not use Jaxx as it is unstable and will show wrong balances and transactions).
- MyEtherWallet → Online wallet for Ethereum and coins on the Ethereum blockchain. I do not have any funds in this wallet and have it for ICO’s (more on ICO’s later) I am (planning on) partaking in.
- Paperwallet → I use this method of storing bitcoins for my long term investment plan. I even ordered some sweet hologram tamper-evident stickers
- Wallets on exchanges → I use these wallets only for my day trades and tend to move funds back to my desktop wallet when I am done trading. I use Kraken and Bittrex myself to trade on.
For all of the above wallets it is VERY important that you save your seed + QR codes or private keys in order to bring your wallet back online in case something happens to your device. Also, I suggest you ensure someone knows where to look for this in case something ever happens to you.
Buying cryptocurrency is the next step and in order to do this you need to figure out on your own (dependent on country and method of payment you want to use) where to buy your Bitcoins. I myself purchased mine via Bitonic as I can pay via iDeal (Dutch payment method). Make sure you give the correct address of your wallet
Choosing an investment strategy is important and will decide how deep down the rabbit hole you will need to go as well as the time you can and want to invest into it. I have therefore divided mine up into three categories:
- The Long (5–10 years)— I am 100% convinced Blockchain and Cryptocurrencies are not going anywhere and the value is going to continue to increase exponentially. Therefore I have created an offline paper wallet which is locked up safely for which I only have the public wallet address. Every month I will be depositing around 60% of the funds I want to invest into this wallet. More specifically, this is a mix of BTC and ETH as I am convinced that those are in it for the long haul.
- The Medium (1–3 years) — In my previous post I posted a graph of what a $10K investment would be worth today compared to a year (or less) ago and I believe ICO’s with insane value increases are far from being over, I think we are just getting started. Around 30% of the funds I am going to be investing in the coming years will be going towards ICO’s.
- The Short (hours and days) — I am a gambler, I have always been and I like the excitement of possibly increasing your money by 200% or 3000% in a matter of hours or days. In the world of Cryptocurrencies this is very possible. I am part of various chatrooms, communities, forums and on notification lists about market activities related to pumps and dumps. This is by far the area in which I need to learn the most, from reading charts to decoding the language used in chatrooms. I will be devoting 10% of my funds to try and learn how to become a trader (on the side as I (still) have a job).
There is much much more for me to learn and I am doing so everyday. I am convinced that we are still in the infancy stages and that this exponential growth will continue over the coming years to unbelievable heights.
PS this is no way investment advice nor do I claim that I know what I am talking about at all. I am sharing what I am doing and you decide what you do with your money.