This episode goes over how to invest in crypto! Cryptocurrency is making more of a comeback again – this is a beginner’s guide to crypto so that you guys can get familiar with it. It’s important to start learning the fundamentals of cryptocurrency and be able to answer the question of “why invest in cryptocurrency” before you start just dumping money into it! Make sure you watch my other video on “Why you should invest in crypto” as well.
Just FYI the interest rates for Blockfi have adjusted since this video and may change in the future!
✅ $10 free Bitcoin with Coinbase: https://www.coinbase.com/join/tseung_…
✅ Get up to a $250 crypto bonus on Blockfi: https://blockfi.com/sharon?
✅ Sign up on Binance.us https://accounts.binance.us/en/regist…
Store your crypto:
✅ Store your cryptocurrency on the Ledger Nano X: https://shop.ledger.com/products/ledg…
How to Invest in Crypto For Beginners 2022 (FULL BEGINNERS GUIDE)
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
As you can see, it’s as simple as that, and I’ve just purchased some bitcoin. Next, you can also sell so now like if I wanted to sell that Bitcoin for cash, I can totally do that. And then you’ll also have a convert tab, which will allow you to switch from Bitcoin to Aetherium. For example, it makes it really simple. As you’ll see, in other exchanges, this process is a little bit different and maybe more complicated. So this makes it really easy, you just select the crypto you have and see which one you want to switch it to. So like that if you wanted to convert $50 a Bitcoin to Aetherium. This is what the transaction will look like. Now if you want to send or receive crypto. So basically, if you want to send it to another wallet or send it to somebody, you’re basically going to click this button here, you’re going to find their wallet address, or maybe it’s a different exchange, and you’re pulling that address. So for example, if I wanted to send this over to my block phi account, I would pull the address from block phi and put that over here. And then you’re going to put like $50 of Aetherium, or whatever you want to send it to, but each one has its own different address, okay, so make sure you’re not pulling an Aetherium address from block phi and then sending over Bitcoin to it, you want to make sure if you’re going to transfer this over to block phi, you’re going to pull the bitcoin address and put that over here, okay, you’re pulling that from block five, putting that over here, sending it over, and then that’s going to be higher and transfer between exchanges. Or you can get a wallet address from a friend or something and send them some bitcoins if you want to send some free bitcoin to a friend or something like that. And then obviously, if you want to tap receive, you can basically grab your wallet address for Bitcoin or whatever coin you want to grab, I’m not going to showcase that here. But that’s what you would do in order to send and receive Bitcoin or Aetherium, or whatever. That’s basically the rundown. It’s so easy to get started with Coinbase. Now let’s go over by Nance. Okay. Now I wanted to go over by Nance, because a lot of people actually use it. And I used to use by Nance calm, and they basically switched over to buy nance.us. So I had to do all this stuff where I had to transfer that crypto over to the by Nance at us one which was kind of annoying because they had transaction fees, and I already owned it, it was just annoying, because they split off to finance that us. But anyway, what you’re going to use is by Nance that us if you want to use this exchange, and I’m gonna have a link below if you want to try it out, they unfortunately don’t have a sign up bonus though, but basically by Nance has over 50 Crypto on it, which is more than what Coinbase offers. It just has a $10 trading minimum and it has lower transaction fees than Coinbase, which is very appealing. Same thing with coin base. Basically dollar deposits have FDIC coverage up to $250,000. But again, this does not cover your crypto. And I would say finance is a little more advanced than Coinbase. So I’m going to show you guys why. So let’s go into bias right now. All right now we are in binance. And like I mentioned, you can actually buy way more types of crypto here. So as you can see here, you’re going to be able to buy all these different ones. And it offers a lot more selection over coin base. But the idea is simple. You press buy crypto, and you just buy and sell here. So it’s the same type of thing. You can also similar to coin base put in recurring payments. And the advantage over it, like I mentioned is more crypto and smaller fees. Now if you want to trade crypto with your Bitcoin, they also offer that as well. So I’m going to go into and show you guys. So if you tap this, for example, you’re going to see it’s a little more complicated. There’s candlestick charts, you can put in limit orders and stop limit orders on top of the market orders that you would normally do. But basically, if you keep it simple, I don’t want to like confuse you guys, if you wanted to buy a theorem. For example, I don’t have enough right now to do that. But basically, if you want to do that with your Bitcoin, you can do it this way. And you can just buy it like this. Very easy. Now, for example, if you wanted to buy Cardano with your USD, you tap here, and then you can either put a limit order or a market order. For example, if you want to buy five Cardano or something, you just press buy. I don’t have USD in here right now. So I can’t buy right now. But that’s basically how you would do it. Same thing with sell. And you just do it this way. But you can see where it’s going while you’re buying it, which is pretty cool that it has the candlestick charts and stuff like that. So you can look at the charts. Now that mainly covers the basics with binance. Now let’s go over the third one, which is block phi, which actually really like has talked about it a little bit basically block phi. You can use your account as a savings account essentially. So you would earn interest on your crypto, it can earn a pretty high annual percentage yield basically up to 8.6% API, which is awesome with banks, you basically get like point oh 1% So it’s pretty negligible, right? The
rewards here are pretty heavy. If I can get 8.6% on everything, I would definitely take that but not all their coins give that much I’ll show you right here, you can basically look here and see how much interest you can get. So if you had zero to 0.5 amount of bitcoin, you get a 5% API, and then anything above that, it’ll basically get this percentage. So look into here and see what rates they offer. The annoying thing with block phi is they do change their rates sometimes. So like, it’s not always going to be this, I don’t believe I believe they have lowered it a little bit. So to what it is. Now, like I mentioned here, this is how the interest tiers work. If you deposit one Bitcoin, point five of that Bitcoin would earn 5% API, and then the remaining point five would earn 2% API. So that’s like what I mentioned in the tiers, you can also look at this chart and basically see how much you could earn. If you just put USD in here, they actually give more API for that. So for example, if you had 10 Ethereum, you would get over $2,000 of interest over one year and over 10 years, you could get this much is pretty awesome. Bitcoin, if you had 10, Bitcoin, which is a lot, you would basically get this amount of interest per year, this is a lot of money. And this is basically kind of like free money because you are letting it sit just like you would in Coinbase, or something like that. Except not only is your investment appreciating, for example, if the markets are going up, you are also getting interest on your investment, which is basically free money every year. So there are no hidden fees or minimum balances. So you can get started pretty quickly and possibly going to transfer more money into block five because the interest rates are really good. Now you’re probably wondering how are they able to pay that free money and basically, they issue loans, they make it so people can borrow USD against their crypto assets, you can borrow up to 50% of the value of your crypto. So say you don’t want to cash out your crypto, but you need money. You can use your crypto basically Bitcoin Litecoin or Aetherium as collateral, you can see more information here. Basically, if you wanted to borrow $25,000, you would need one bitcoin in order to do that 1.02 That basically means you know, Bitcoin is worth around 50,000 As of this video, so it’s basically saying that you need about 50k of it, that they can use as collateral so that you can borrow this amount of money in case you can’t pay it back then they have that and they can keep that essentially is what it means. And the collateral amount is based on a 50% loan to value which is what I mentioned here is 25,000 for your $50,000 worth of bitcoin and their rates around 4.5% APR, which is not bad. So like I mentioned before, they have decreased their API, which is the interest that you would make they’ve decreased that before so watch out in the future, because our rates can change. Now they were founded in 2017. So they’re quite new one con is that they’re currently not as safe as banks because they are not FDIC insured, which is different from the other two exchanges I mentioned. If it’s crypto, they’re still not FDIC insured anyway. But if you have cash and block five, that’s not going to be FDIC insured. Because block phi is not FDIC insured, their custody provider is Gemini. So that means your crypto is stored with Gemini not block phi. And as you can see here with Gemini, the majority of crypto is held in their offline air gapped cold storage system. So they take a lot of security measures, which is good PR this review Gemini is a licensed custodian and regulated by the NY DFC and recently received SOC two compliance from Deloitte for its custody solution. So it’s good that they are still regulated by the NY DFS and they’re taking security measures. Another thing you need to know it’s it’s not as liquid, so it’s going to take a decent amount of time to withdraw. If you want to withdraw, it’s meant to be kind of a savings account that you leave your crypto in there and earn interest. For example, with my boyfriend, he tried to transfer out of block phi and took many days for him to do that to extract his Bitcoin to another exchange. So you got to think about this as a savings account. And also make sure you understand the risks. Like I mentioned, it’s not FDIC insured, and that’s also why I don’t put all my crypto in block five because of security as well, that I have it in different places that I have it in my ledger as well. So that keeps it a little bit safer. Okay, now we are in block five. So I’m going to show you guys kind of my portfolio real quick. So as you can see here, you can go into my account balance, and I have this much in Bitcoin this much in Aetherium. I have some cash here just to show you guys how it works. And I have some Litecoin in here. So as you can see you get some accrued interest, it should pay out monthly, it has a 5.0% AP why you can basically go in here and check theory M has 4.5% AP why Litecoin is 5.5% you can see here the accrued interest as well as the total interest paid. So right now I’ve only put in this money pretty recently. So it’s a crude a little bit of money, which is pretty cool. Now in order to buy Bitcoin or Aetherium or whatever you want to buy. There’s basically two steps you got to press the posit, and then you’re gonna basically deposit USD with ACH or wire or different ways and they do it through plaid and they make it really simple. I’ve already transferred 100 bucks over so you guys can see how it all works but basically like you would transfer your USD from your account over to block fi first and then after that you’re going to press trade and then you’re going to use that to essentially buy whatever you want to buy. So if you want to buy 100 bucks of Bitcoin, you would sell your USD over and then buy the Bitcoin. And that’s basically how it works. You can also do one time or recurring like all the other ones that I mentioned as well, and then you just buy it. And here you know how the other exchanges I kind of showed you how to convert it to different ones, I think it’s better to just buy it here and just leave it here. This is kind of more of a savings account that accrues interest and that’s really simply how you buy Bitcoin or any other cryptocurrency that they offer on block phi, you transfer your USD over and then you use that to trade it for Bitcoin. Now in order to get started with block phi, make sure to use my link below and you can get up to a $250 Crypto bonus with a deposit of $25 or more in crypto if you sign up with my link. So go ahead and check that out and you just sign up right there. So all three of those exchanges you can find the links below in my description. Now if you are investing in cryptocurrency, I do want to mention that it might be a good idea to get a ledger this is basically what it looks like this is the Ledger Nano x I’m going to link it down below but basically these allow you to store your cryptocurrency more safely in case any exchange gets hacked, you can put them on here and the ledger only holds the private keys that give you access to the funds in the blockchain it’s not actually stored in here. So what you’re going to do is when you get it you’re going to create a pin as well as a 24 word passphrase that you will keep securely and only you would be able to access those funds. So if you had a bunch of money in Coinbase or all these other exchanges, there is the possibility of it getting hacked and you can lose your money so you have to understand the risks of that Okay, so in order to be super safe, whether you put it here but obviously if you put it on block phi you would be accruing interest there you can’t accrue interest on here. So that is a risk there.
So there are risks to leaving it on the exchange versus a cold wallet like this. I’m not going to get too detailed on how to set up your ledger and how to start transferring funds over but if you guys want a video on that let me know in the comments below and I might do a video on that as well but this is very important if you guys do want to be secure with your crypto make sure you start with your cold wallet now I hope you guys enjoyed this extensive video on how to invest into cryptocurrency I basically went over multiple exchanges why people are interested in cryptocurrency the risks involved with it as well as briefly go over how to store it with a cold wallet and if you guys liked this episode, let me know in the comments below if you guys want me to go into the ledger more deeply if you guys want me to go over my thoughts on which crypto I like just let me know in the comments below make sure to smash the like mind if you guys like this video subscribe hit the bell button to be notified on my latest videos and I’ll see you guys in the next one.Transcribed by https://otter.ai