My Crypto Cheatsheet
Updated as of: January 1st, 2017
Welcome to My Crypto Cheatsheet!
Before you scroll down, some disclaimers:
- I'm not an expert. I'm simply someone who invests time and money into crypto.
- This isn't financial advice. All I'm doing is journaling my progress.
- Only spend what you're willing to lose. Nothing is guaranteed. If you lose your home because of crypto, that's your fault. Not mine.
Now that the legal stuff is outta the way, let's begin.
How to get started
If you already know how to buy crypto, you can skip this step and scroll down to the more-advanced stuff.
But if you're new and eager to begin, do this.
- Buy crypto
- Transfer it to an exchange
- Track your profits/losses
There's more to it than that, but these 3 steps will get you started.
1: How to buy crypto
The most-user friendly way to buy crypto right now is Coinbase.
- European? Check out Coinmate.
If you sign up using the "Coinbase" links on this page, we both get a $10 bonus as long as you deposit $100.
The signup process is self explanatory. Just follow the steps.
Once you link your bank account to Coinbase, you'll have the option to purchase these cryptos:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Litecoin (LTC)
These are all solid choices.
BTC is currently the most-common currency for buying other coins. So if I were to choose one type of cryptocurrency, it would be BTC.
- NOTE: You do NOT need to buy an entire Bitcoin or any other cryptocurrency. You can purchase a fraction of it instead. As the crypto's value goes up/down, so does your fraction.
Once you've made your purchase(s), congrats — you now own cryptocurrency.
At this point, you can either "hodl" your crypto or you can invest in alternative coins (aka, altcoins).
Altcoins have the potential to skyrocket. I've purchased dozens of altcoins. I'm hodling some while day and swing trading others.
If you want to purchase an altcoin, you'll need to transfer the crypto your purchased to an exchange.
- TIP: Coinbase has another site called GDAX. You can log into GDAX using the same username and password. Why use GDAX?Because GDAX is designed for trading, there are less fees when transfering crypto to an exchange.
2: How to transfer to an exchange
An exchange is like a marketplace for altcoins.
Because crypto exchanges only accept crypto, you won't be able to use fiat currency (e.g., USD, YEN, PESO, etc.).
The exchanges I use:
There are many more exchanges, but these two are good to start with.
After signing up on an exchange, you'll then need to visit the wallets (Bittrex) or transfer/withdraw page (Binance) to get the specific address for that cryptocurrency.
Triple check everything during the transfer process. Make sure you're transferring the same coin (e.g., BTC to BTC). Making a mistake on this step may lead to losing your crypto forever.
Once you have the address, you'll go back to GDAX to make the transfer.
Transfers take anywhere from 10 minutes to a few hours. It depends on the congestion in the network.
LTC and ETH transfers are generally faster. The downside is not all altcoins are available via LTC or ETH.
BTC is the most-popular coin for purchasing altcoins, but it also takes the longest to transfer and has the highest fees.
If you're buying at the price the crypto is buying/selling at, your order should process quickly.
What I just described is the simple version of buying an altcoin. At this point, I wouldn't overthink it.
Don't let your emotions get the best of you.
If you think an altcoin is a good purchase, buy it. You could spend hours waiting for it to drop... and kick yourself for not buying it sooner when and if it goes up.
Again, don't overthink it.
Make the purchase and track your profits/losses.
3: How to track your profits/losses
The app I use and love to track my purchases is Blockfolio.
Whenever I made a purchase or sale, I use Blockfolio to log the transaction. Blockfolio makes it easy.
There are other portfolio apps out there. Try them out and see which one you like!
Checking your altcoins is addicting, but you must be careful. It's easy to want to buy/sell based on the current price. This is a reactive way of thinking. It's not what I suggest.
Rather, I stick to a series of rules. Over time you'll develop your own rules that work for you.
Want to know what rules I follow?
Here ya go.
My 3 Cryptocurrency Rules
These are the rules that work for me.
1: Make equal purchases
No matter the crypto I buy, I use the same amount.
I call it my principal. My principal stays the same in order to evenly distribute my risk/reward.
2: My 250/120 rule
Whenever a coin breaks 250%, I sell 120%.
I set an alert using Blockfolio to let me know when a coin breaks 250%. For example:
- I buy $100 of ABC coin.
- If ABC reaches $250, I withdraw $120
- $100 (principal) + $20 (20%)
This rule allows me to get my investment back (plus profit), while I ride out the rest. While I may miss out on potential gains if the coin goes higher by doing this, I'm okay with it.
There's nothing wrong with taking profits; they allow you to increase your principle. For example, instead of spending $100 per coin, you can eventually purchase $500.
The bigger your principle, the greater the reward. But don't let that stop you from starting small. That's how you learn.
3: Let the game come to you
I got this rule from a paid newsletter I subscribe to.
The idea is not to chase profits. Set rules, stick to them, and let the game come to you.
Using these rules, I've been able to 4x my money since I got started.
I got started with BTC and now I've purchased dozens of coins. Most of them are profitable.
I'm now going to my portfolio — which includes every coin I've purchased. Whenever I a make a purchase, I update this portfolio.
My Crypto Portfolio
These are the cryptos I've purchased.
Below you'll see:
- Name of coin (SYMBOL)
- Date I purchased
- Price I purchased at (not the current price)
- Exchange I used to make the purchase.
- Date: Jan 2, 2017 / Price: $8.74 / Exchange: Binance
Bitcoin Cash (BCH)
- Date: Nov 13, 2017 / Price: $1,408.93 / Exchange: Binance
- Date: Dec 20, 2017 / Price: $.05658448 / Exchange: Binance
- Date: Nov 29, 2017 / Price: $1.81/ Exchange: Binance
- Date: Nov 21, 2017 / Price: $494.98/ Exchange: Bittrex
- Date: Aug 29, 2017 / Price: $4,593.69 / Exchange: Coinbase
- Date: Dec 31, 2017 / Price: $0.0012 / Exchange: Coinsmarkets
- Date: Dec 25, 2017 / Price: $2.44 / Exchange: Bittrex
- Date: Dec 31, 2017 / Price: $0.17590293 / Exchange: Binance
- Date: Nov 14, 2017 / Price: $1.54 / Exchange: Binance
- Date: Aug 30, 2017 / Price: $381.90 / Exchange: Coinbase
Ethereum Classic (ETC)
- Date: Jan 1st, 2018 / Price: $30.99 / Exchange: Binance
- Date: Nov 9, 2017 / Price: $24.07 / Exchange: Binance
- Date: Nov 6, 2017 / Price: $0.19757025 / Exchange: Bittrex
Date: Dec 15, 2017 / Price: $309.77 / Exchange: Coinbase
- Date: Nov 21, 2017 / Price: $0.49229770 / Exchange: Bittrex
- Date: Dec 17, 2017 / Price: $42.99 / Exchange: Bittrex
- Date: Dec 6, 2017 / Price: $8.80 / Exchange: Bittrex
- Date: Dec 31, 2017 / Price: $0.0059 / Exchange: Storiqa (ICO token)
- Date: Dec 22, 2017 / Price: $0.02372094 / Exchange: Bittrex
- Date: Nov 22, 2017 / Price: $0.08323756 / Exchange: Bittrex
Stellar Lumens (XLM)
- Date: Dec 24, 2017 / Price: $0.20847885 / Exchange: Bittrex
- Date: Nov 6, 2017 / Price: $0.2024035 / Exchange: Bittrex
- Date: Dec 13, 2017 / Price: $0.01423750 / Exchange: Bittrex
- Date: Nov 5, 2017 / Price: $19.61 / Exchange: Bittrex
The crypto rush is causing a lot of exchanges to open and close. In order to prepare in advance, I recommend having an account in all of the following exchanges — even if you're not actively trading yet.
Except for Coinbase and GDAX, these exchange will not fiat currency such as dollars or euros. You'll need to purchase crypto first to handle your transactions.
Make sure you use a strong password and keep it in a safe location after. Should something happen, you don't want to get locked out of what could potentially turn into millions of dollars.
Setting up two-factor authentication via Google Authenticator is also a wise step. Save your backup code for this as well, so you have it when you change phones.
I know this sounds like a lot of work, but the tradeoff is worth it. These are the exchanges that are turning the traditional way of exchanging money with banks to a peer-to-peer platform.
Want more updates?
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My favorite resources
- Coinmarketcap - For comparing cryptocurrencies, checking prices, and learning what exchanges they're trading on.
More coming soon!
This page will get updated over time.