Bitcoin here, Bitcoin there… You have been hearing it all over the news. Cryptocurrencies went through a huge hype in the second half of 2017 and 2018 seems to be a crypto year, too.
Fortunes have been made within a few weeks when valuations of crypto assets exploded early December 2017. Some OG’s managed to buy their Bitcoins back in 2013 for a few (hundred) bucks a pop. Now the same bitcoins are valued at over USD 10000 a coin. The all-time high prices went all the way up to USD 20000. Do your own math… but if you are the envious type, it is not going to be pretty!
Who has been buying these “cryptos” and what have you missed?
It seems that a very young and predominantly male demographic has jumped onto this opportunity as regulations are being implemented only slowly if at all. The community is incredibly big all around the world. Some are “mining” coins using graphics cards and cheap electricity or using the so-called “cloud mining” services and others are buying coins on exchanges for a quick flip or a “long-term” investment which is often not more than a week! It is the wild west in crypto.
With the popularity of cryptocurrencies, other uses of the “decentralized blockchain” technology have quickly been found so that now you can not only purchase coins but also the so-called “tokens” which can represent a digital currency for a specific utility or a share in a project. These tokens are offered in the so-called ICO (Initial Coin Offerings) all over the internet. Just with a couple of bucks, you can now become a venture capitalist if you are ready to risk it all and if you are confident to find the few unicorns that may actually succeed.
Remember, there is almost no legal protection when investing in most of these projects just yet. Everyone and their mother is now running ICOs for projects that have barely any potential, with no actual products or prototypes and only a carefully selected bunch of advisor photos on a WIX website. So be careful.
What is the government doing about the crypto hype?
The cryptocurrency hype has taken the world by surprise. There is currently barely any dedicated legislation. China, South Korea and Russia have been banning and unbanning cryptocurrencies on various occasions. Switzerland is about to embrace the technological miracle and sees opportunities, so does Japan. So in short, we don’t know. It depends.
Have there been major crimes or scams in the space?
You bet. In a place with almost 0 regulation and over 600 billion of dollars invested, there are plenty of scammers trying to make a quick buck. Ponzi schemes can be found left and right, however, it is currently difficult to distinguish a project that received 10 billion in funding based on a PDF white paper from an actual scam with bad intentions. Check the Bitconnect scam for an example of how people lost all of their investment and often all their life savings practically overnight.
How do you stay informed on what is happening in the crypto space?
This is actually one of the most fascinating developments for a digital marketer like me. All of the crypto projects are 100% online based. All projects are using the Telegram chat app to maintain a community, answer questions and to provide comfort to the investors. They use Twitter for announcements and “inter coin beef”. They use Facebook to raise money. They use Github to share the code base. They use Tradingview to share chart analysis. And above all, they use YouTube for learning and promoting their cause. They have their own social network SteemIt that is based on a blockchain and the long form content is shared on Medium. It is an ecosystem on its own and nothing like the traditional startups.
Still interested? Do you want to get in on this?
The most fundamental way to get started in crypto is to simply buy one of the 4 top coins on Coinbase (Referral Link) such as Bitcoin, Ethereum, Bitcoin Cash or Litecoin.
If you want to go beyond the basics, you will need to transfer your coins to an exchange such for example Binance (Referral Link). On an exchange, you can trade listed coins and tokens for your acquired gateway coins.
If you want to go a step further you may want to purchase some Ethereum and participate in an ICO.
Before you go. Here is some slang to get you started in the community:
HODL — Buy and hold strategy. Just HODL man
FUD — Purposefully spread fear to drive down prices. It’s just FUD man!
BUY THE DIP — Don’t worry if the market falls 40%. It’s just an opportunity to buy more
SHILLING — Shamelessly promoting investments to push up the price
GOING TO THE MOON — Coins exploding in value quickly. – When moon?
WHEN LAMBO? — Asking about a price explosion (Not considered as good netiquette)
Check out YouTube for any other information you may require as this is where you are likely to learn the ropes on how to transfer coins and how to invest in ICOs. Obviously, you will also realize how many greedy YouTubers are using every trick in the book to get you into buying coins they have an investment in that week even if the project is absolutely worthless.
But here you will also discover the guys who will make you want to stay in the crypto community, so do not be discouraged and buy the dip!
(Have I missed a key element? Comment constructively below. Thank you)
Passionate about digital marketing, cryptocurrency, and self-actualization.