Guide to Crypto Investing

How to get started

The simplest way to easily buy and sell bitcoin is to use Coinbase. There are some small fees attached to just hitting the buy button though - if you want to avoid paying any fee, you need to use Coinbase's sister exchange GDAX which uses the same login credentials as Coinbase. Simply transfer USD from your bank into your GDAX account, wait a few days, then enter a limit order below where the current price is. You will avoid paying any fee if your order is not immediately executed (you become a "maker" instead of a "taker").  

Buying Alt-coins

If you decide to buy other cryptocurrencies aside from those offered on Coinbase, you will need to use other exchanges. I have personally used Poloniex, Kraken, Bitfinex, Gemini, and Bittrex. To determine what exchange your desired coin is listed on, use CoinMarketCap and simply hit the "Markets" tab after you selected your coin. Be aware of any withdrawal limits imposed by the exchange you use - I always try to get verified to my desired limit before I actually send my coin to the exchange. Poloniex is the slowest to approve, while Bittrex is very quick (with a very high limit as well). At this point I have to recommend Bittrex as my preferred exchange due to ease of use, clean looking UI, quick and easy deposits/withdraws, and a very large listing of alt-coins to choose from. 

Storing your coins

I recommend keeping your coins in a secure wallet whenever you aren't actively trading them. I use Trezor as my preferred storage option, but for coins that are not supported the best choice is often the coin specific wallet that can often be found by checking the website for the coin listed on CoinMarketCap. I am not overly concerned with a major exchange stealing my coins necessarily - the bigger issue is potential service interruptions or maintenance that may prevent me from trading my coins if needed. From my Trezor I can send any amount of bitcoin to any exchange in minutes - it's worth paying the small transaction fees to get my coins off exchange for that kind of flexibility. Note that you need to be very familiar with how to protect your private keys for each wallet you have. If you are not comfortable yet with how to do that, it is much safer to stay on a trusted exchange.

My Portfolio

I have ~80% in Bitcoin, ~8% in Ethereum, and my other coins representing <2% each are Status, Golem, TenX, Basic Attention Token, Qtum, Iconomi, OmiseGo, NEM, Waves, Stratis, Civic, and Neo. I'll discuss some of these in future posts. My positioning is mostly a reflection of recent market trends - Bitcoin has been steadily increasing against most other cryptos. I do believe bitcoin will see increased use and adoption going forward, but I also believe ethereum and others will as well. Once the market starts to reflect that, my positioning may change as well. 

Important Disclaimers

I would never recommend investing more than you can afford to lose in cryptocurrencies. None of the above represents financial advice - I am simply sharing my opinion and nothing more. I can easily be wrong and often am. That said, a simple strategy of investing X each week/month into cryptocurrencies could be a good way to participate in this exciting new market. 

Thanks for reading!

I would love to hear your thoughts or ideas about investing in cryptocurrencies. What are you currently invested in? What is your favorite coin right now and why? Let me know what you would like to see me talk about in the future. If you have any questions or comments, please let me know below!