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Crypto, a Greenhorn’s Guide

Crypto, a Greenhorn’s Guide

Chris Campbell

Posted May 14, 2024

Chris Campbell

King Hieron II had a problem.

He needed to know if his golden crown was pure gold or mixed with other metals.

Archimedes had a problem.

He needed to explain how he could test the crown with water… without sounding like a lunatic.

He was failing at the second part of that equation.

The lengthy explanations that made perfect sense to him had only made Hieron's eyes glaze over.

The king was not convinced.

Archimedes had what’s called the “curse of knowledge.”

He was so entrenched in mathematical and scientific modes of thinking that communicating the basics in a simple way was difficult.

You probably know what happened next:

One day, while stepping into a bath and observing the water level rise, it finally clicked.

The Eureka Moment

Our eureka moment isn’t as flashy.

James and I recently got a HUGE influx of new people into our Early Stage Crypto Investor (ESC) research service.

One week, during one of our live crypto calls (happens every Monday), it occurred to us that we were like Archimedes talking to a crowd of glassy-eyed Hierons.

We had the curse.

One part of the curse is assuming that people have the basics down.

Not the case.

So, today, just to remove any chances here in ALC, we’re going to cover the SIMPLEST ways to get into crypto.

I’ll warn you…

If you’ve spent any time in crypto, you might read this and think, “DUH!”

If this is you…

Congrats, Archimedes. You’ve graduated to the curse of knowledge.

(You should read it all anyway. Reminders are good to help get back to the basics.)

OBLIGATORY DISCLAIMER: Crypto is risky. Don’t invest more than you can afford to lose. And you don’t need to: Crypto is the BEST asymmetric bet in the world. IF you do it right.

Use Established Exchanges

When first starting out, it's best to stick with the most established and widely adopted exchanges.

Start with Coinbase. (Our favorite centralized exchange.)

Also, buy some established cryptos -- to get a feel for it.

Think of major cryptocurrencies like Bitcoin as the "blue chip" stocks of the crypto world -- they have a proven track record and are less volatile than speculative penny stock-like altcoins.

Bitcoin is the original and still most prominent cryptocurrency.

Ethereum is an even better option.

In our opinion, Ethereum has better upside potential than Bitcoin.

Established cryptos won’t go up 1,000x… but they’re still a good asymmetric bet.

(James and I do offer reports, live calls, and weekly updates on cryptos that DO have 1,000x potential. But we always suggest people learn the basics first.) 

Understand the Technology

Cryptocurrency blockchains are like a global public ledger that securely records all transactions…

Sort of like an automated encrypted Google Doc that everyone can view, but nobody can edit.

This “Google Doc” enables secure, decentralized transactions without the need for intermediaries.

Understanding the basics of how these cryptos and their underlying technology work is important before investing heavily.

In our flagship crypto research service (ESC), we provide an ever-growing “Members-only” crypto research library.) 

Set it and Forget it

One of the best ways to invest in crypto is through dollar cost averaging (DCA).

This involves investing a fixed amount on a regular basis, like weekly or monthly, regardless of price fluctuations.

DCA helps smooth out the volatility of the market, ensuring you buy more when prices are low and less when high.

The Coinbase exchange allows you to automate DCA purchases. You can do as little as $5 per week.

(The library provides one way to pay lower fees on Coinbase. Although it doesn’t work with automated buys, it’s worth the knowledge. Here’s a freebie: How to pay lower fees on Coinbase.)

Move Crypto to a Cold Wallet

Once you purchase crypto, don't simply leave it on the exchange.

Centralized exchanges can be hacked or go bankrupt (like FTX), putting your crypto at risk.

Instead, transfer your holdings to a "cold" wallet that is not connected to the internet for safekeeping.

Hardware wallets like Ledger or Trezor are best for long-term storage. Make sure to securely back up your private key as losing it means losing access to your crypto.

Tip: ONLY BUY DIRECT FROM THE PRODUCERS. Never buy a hard wallet from a third-party. Not even Amazon.

Start Small!

When you transfer crypto to your own wallet for the first time, start with a small test amount to ensure you're doing it correctly.

Double check the wallet address and don't rely solely on copy/paste. Once you confirm it works, then you can transfer larger amounts.

Remember, crypto transactions are irreversible!

Research. Research. Research.

Keeping up with crypto is a Herculean task.

One good crypto news aggregator is cryptopanic.com.

Bookmark it.

But let me tell you a secret: 99% of the “news” is noise.

The 1% is where you find the gold that will make you money.

More tomorrow.

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