Today I wanted to write an article that has nothing to do with water or my mission. It’s just fun. If you have been curious about cryptocurrency, I want to tell you about how I play around with it in a very limited way.
First of all a disclaimer, I know very little about this subject and in no way am I claiming to be an expert. In fact, I’m stating right now that you should definitely not take advice from me in this regard, but I can’t stop you from continuing to read this article if you insist. 😉
What I can offer is a novice’s perspective on getting to the point of at least playing around with it. Also, I will say that I think it is important to learn about this, because it’s going to be the future.
My philosophy as it pertains to cryptocurrency or any “investment” that you don’t understand, is that it’s gambling. I only put in the amount of money that I can afford to lose, and actually, I expect to lose it. So I put a couple hundred into it is all (I have doubled my money so far, but it could vaporize at any time).
The first thing to understand is that while you’ve not doubt heard of Bitcoin, there are a ton of cryptocurrencies on the market, and there are new ones all the time. Other cryptocurrencies include Bitcoin Cash, Etherium, Litecoin, TRON, Stellar, NEO, and many more.
For example, Ripple is one that has been around for a few years and as I write this, it’s only worth $1.12, which means that you can buy a lot of them. Ripple is an interesting cryptocurrency because they are trying to work WITH the banks of the world as opposed to most of the other currencies which are completely outside of the banking world.
Another interesting point is that the founder of Ripple was briefly as rich as Mark Zuckerberg about a month ago. His wealth obviously fluctuates with the value of Ripple, so it won’t take much of a swing for him to become the richest person in the world. It could even happen overnight. I predict that very soon, and perhaps by the end of 2018, the richest person in the world will be someone who created a cryptocurrency.
It’s important to understand that you don’t have to purchase full coins. For example, if you wanted to buy one Bitcoin right now, you’d have to pay about $8,600. But you don’t have to do this. If you only wanted to spend $200, you could buy 2% of a Bitcoin.
If you live in the USA, the easiest way to buy Bitcoin is to join CoinBase. It’s like the PayPal of cryptocurrency. But, the problem with Coinbase is that you can only buy four different currencies on CoinBase right now; Bitcoin, Etherium, Bitcoin Cash and Litecoin.
One of the attractions to cryptocurrencies (at least for me) is to buy them when they are super cheap, which means you have to buy them before they make their way onto Coinbase. To buy many of the other coins you need to become part of a cryptocurrency exchange.
To purchase cryptocurrencies on an exchange you have to create an account, deposit money, and then you can convert your money into different currencies.
I’ve tried some different exchanges. Some exchanges had such an onerous sign up process and they were so confusing that I just gave up before I could use them. The one that I found the easiest is binance.com.
After playing around with binance.com for a while, I found it to be fairly straightforward and easy to understand,. But here’s the weird thing, binance.com (and I think this is true of other exchanges) don’t accept regular money. You can only deposit money via cryptocurrency. In other words, you need to first set up a Coinbase account, and then once you buy Bitcoin or Etherium with cash, you can transfer this amount to your account on binance.com.
So here are the steps to getting started…
Step One: Set up a coinbase.com account (it’s free). This is a straightforward process.
Step Two: Purchase an amount of Bitcoin or Etherium from coinbase.com. When you are on coinbase.com you just need to click on the “Buy” button, then choose how much money you want to spend ($200 for example) and then click the submit button. It may take a few days for the money to be transferred from your bank into your account.
Step Three: Open a biance.com account (also free). This is very simple, even simpler than Coinbase because you don’t have to link your bank account. Once this is done, you can transfer your $200 worth of Bitcoin or Etherium to binance.com and you can then buy some other currencies. See this video explanation that I found: https://youtu.be/lD_bpFQTITc