Saturday , December 16 2017
Home / Featured / Not Ready to Make the Cryptocurrency Investment Plunge? Here Are Some Tips to Test it Out

Not Ready to Make the Cryptocurrency Investment Plunge? Here Are Some Tips to Test it Out

Despite its rapid growth, the entire cryptocurrency market still represents a small amount of the global currency market. The technology is young, the market is young, and it’s volatile. That might make you a little nervous. Normally, we are conservative investors who to stick to known, stable, predictable investments.

At the same time, there’s been a lot of buzz about cryptos. Mainly that it’s an exciting new movement and opportunity to possibly plant seeds of life-changing wealth. Perhaps it’s a chance for a small stake of $100, $500, or even $1,000 to change your family tree.

Let me be clear, I am not giving you investment advice here. I am simply sharing some information based on questions I have been asked recently. Hopefully this will shed more light on this whole space for you.

Do I have to buy a whole bitcoin?

No, you do not. At the time of this writing, one bitcoin is worth over $8,000. If you don’t want to or cannot afford to buy a whole bitcoin, you can buy it in smaller units. Bitcoin is divisible to the eighth decimal point. That means the smallest unit of bitcoin, called a Satoshi, is 0.00000001 bitcoin. Generally, you can buy any dollar amount of bitcoin you want.

https_blueprint-api-production.s3.amazonaws.comuploadscardimage563663fdbee1aa-f2f1-43ff-9bca-a5c59b434542

I’m new to cryptocurrencies and  trying to get comfortable with the many different services. What can I do so I don’t lose my money during transactions?

  • Take some time to learn about the services before you use them.
  • When you start using a service, test it out with small transactions. That way, if you don’t like the service or run into problems, you have taken very little risk.

Here’s an example: when sending money from one address to another, send a small amount first. For instance, if you have purchased $500 worth of bitcoin and want to move it from an exchange to a wallet, you can move a small amount first. Let’s say $10. Once you have initiated the transfer, waited the recommended time, and then see the transaction, you know you have done it correctly.  Though there  may be fees associated with the transactions, it’s reasonable to pay a fee to move a small amount of money to make sure you’ve done it properly. Especially if you’re not comfortable. Would you rather lose $10 or $500?

Most problems rise when transferring coins from one service to another. Before you hit send, make sure you are sending to the right wallet. For example, you do not want to send bitcoin to an ether wallet. Also, double-check the address before sending. A quick way is to check the first and last four characters of the address. If they match up, you’re probably good to go. If you send money to the wrong address, in most cases, it’s gone forever.

Helpful Tools

CoinGecko keeps a list of all available cryptocurrencies. Their ranking system gages all the cryptos available in terms of market cap, developers, community, liquidity, and public interest. This list is helpful if you want to see which cryptocurrencies are popular.

Coindesk is another helpful website.  They have a Bitcoin calculator that allows you to convert your currency to and from bitcoin. Here’s the link to the calculator -> https://www.coindesk.com/calculator/

Remember, with any investment it’s always wise to comfortable, smart, start small, and avoid risking more money than you’re willing to lose.

For more resources on bitcoin and other cryptocurrencies visit growtheheckup.com/bitcoin

Liked it? Take a second to support GrowTheHeckUp on Patreon!

About Touya Kelley

Touya Kelley has spent the last 5 years of her life offering financial solutions to people. On her personal finance blog Break Free And Win, her goal is to help and encourage others to manage God's money well.

Check Also

Drug-Overdose

How the Opioid Crisis Highlights White Privilege

People are dying. Spouses, friends, neighbors, parents and children are losing one another in a …