5 Things To Know When Starting Crypto
Valueable Things To Know When Starting
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5 Things I wish I learned when I started in crypto
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Nov 21, 2021
5 Things To Know When Starting Crypto
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FULL VIDEO TRANSCRIPT
00:00
five things every crypto investor should
00:02
know all right this is targeting new
00:04
users but if you’ve been trading for
00:05
less than a year and you don’t
00:07
understand this stuff
00:09
uh it’s about time so number one market
00:12
cap that determines the value of a coin
00:15
and not coin price because if it has a
00:18
very low coin price what if the coin
00:20
supply is in the trillions in
00:22
quadrillions that means it’s not as
00:25
valuable as a coin with a smaller supply
00:27
in the millions in billions range so
00:29
we’ll get into that a little more later
00:32
number two don’t trade invest it’s a lot
00:35
easier to be a crypto investor than a
00:38
trader if you’re new to the whole crypto
00:41
scene and investing anyway
00:43
the chances of you becoming a very good
00:45
trader right off the bat are very low
00:48
and it’s really gambling on you guessing
00:50
when the price is high or low with a
00:52
very little information or experience in
00:55
trading so invest that’s a lot easier
00:58
number three everything has fees yes
01:01
every platform has fees including
01:04
robinhood etoro voyager everything has a
01:08
fee because there’s fees for trading
01:11
there’s a spread there’s withdrawal fees
01:14
there’s gas fees and we’ll get into that
01:16
number four staking staking allows you
01:19
to earn crypto passive income for having
01:21
that coin so let’s say you have bitcoin
01:24
you can kind of stake it on some passive
01:27
income platforms and then you earn more
01:28
bitcoin but that one isn’t exactly
01:30
staking
01:31
but you can do that for ethereum and a
01:34
lot of other coins which we’ll get into
01:37
as well and finding these things is
01:39
really just a google search and then a
01:40
quick check to make sure it’s actually a
01:42
safe platform
01:44
and number five scams everyone’s been
01:46
scammed in crypto especially if you’ve
01:49
gone off the main exchanges and you’ve
01:52
ventured into decentralized finance with
01:54
managing your own wallet trying to be
01:56
early in investing i’ve made that
01:59
mistake several times so i’ve learned my
02:01
lesson to the point where i minimize my
02:03
risk and we’ll talk about a couple
02:05
different scams that will happen in
02:08
cryptocurrency but before we get started
02:10
if you can hit that like button i would
02:12
appreciate it so we are going to start
02:14
off with market cap and we’re going to
02:16
go to coin market cap so this will tell
02:19
you the value of the coin in the market
02:23
cap section so you have your coin price
02:26
and then your circulating supply and
02:28
that helps you determine the coin’s
02:29
value you’re going to see all these
02:31
different coins with a price of let’s
02:33
say 1.91 109 41 214 595 coin price
02:40
doesn’t matter market cap matters so
02:44
market cap essentially is the total
02:46
value of that coin with bitcoin for
02:49
example each coin is 59 000
02:52
there is a 18.8 million circulating
02:54
supply
02:55
it’s actually going to be a max supply
02:57
of 21 million but we’re going to go off
02:59
circulating supply you multiply the 18.8
03:02
million by the coin price and then you
03:05
have your market cap so for bitcoin to
03:08
double
03:09
1.12 trillion dollars would have to be
03:12
invested into it for you to see a 100
03:15
gain and if you saw a 1.12 trillion
03:19
dollar investment in a coin that is a
03:22
one billion dollar market cap let’s say
03:25
anything in the one billion dollar range
03:27
right here uh not endorsing these i’m
03:30
just saying if 1.12 trillion dollars
03:33
went into a coin with a 1 billion dollar
03:36
market cap your investment would gain by
03:38
1 120 times now
03:42
very unlikely for that to happen on any
03:43
of these smaller coins because it always
03:45
depends on the demand for the coin the
03:48
utility and most importantly the
03:50
marketing marketing actually plays a big
03:52
factor in a lot of these coins when
03:54
you’re investing in mean coins like doge
03:58
or shiba they heavily rely on marketing
04:00
rather than people needing the coin to
04:02
use their services or platform which is
04:05
why we see a lot of the top coins like
04:08
bnb ethereum solana cardano
04:12
polka dot these are ecosystem tokens
04:15
that run smart contracts and you need
04:17
this coin to run things within their
04:20
network so they create the demand and
04:22
apparently these coins can go up
04:24
significantly in price as people want to
04:26
be a part of that ecosystem they want to
04:29
use things they want to build things and
04:31
they need that coin to be a part of it
04:33
so they create a need rather than
04:35
marketing and for the most part
04:37
marketing does work well but there is a
04:39
limit on how high something can go and
04:41
if you are going to invest in dog coins
04:43
just know anyone can make a dog coin and
04:46
there are a lot of them uh coin market
04:48
cap doesn’t track all of them but
04:51
there’s a lot and these are just coins
04:54
that registered with coin market cap
04:57
i think there’s like over 160 and these
05:00
are just the dog related ones there’s
05:02
also other animals so
05:05
it’s
05:06
a very high risk thing if you want to
05:08
invest in meme tokens utility tokens
05:11
create more demand and build in the long
05:14
term which is something you want to see
05:16
whereas a lot of these
05:18
meme coins might only be available for a
05:21
month or two and then just run off with
05:23
all your money so there is a lot of risk
05:26
when investing in animal related coins
05:29
that have no
05:30
utility utility just means purpose is
05:33
there a purpose why you need this coin
05:34
or you just like the picture of the
05:36
animal it’s up to you you can make money
05:39
either way but there is a lot more risk
05:41
investing in these meme coins than coins
05:43
with utility number two don’t trade
05:46
invest now you’re going to want to start
05:48
trading because like oh buy sell limit
05:51
order market order stop loss you’re just
05:53
gonna kind of have fun with it
05:55
especially if it’s new to you i
05:58
certainly did i did a lot of trading and
06:00
i was making judgments based on a couple
06:02
videos i watched on technical analysis
06:06
where i was just
06:08
trying to be smarter than the market
06:11
in the long run
06:13
it just makes more sense to invest and
06:15
just hold the coin because
06:18
no one can really predict whether the
06:19
coin will go up or down technical
06:21
analysis works to a small extent because
06:24
the markets are volatile you can just
06:27
have the price jackknife and then your
06:29
stop loss activates that then you have
06:30
to buy back in at a higher price that
06:32
happened to me many times so i don’t use
06:35
stop losses i invest in things i believe
06:37
in over a long period of time and if you
06:41
are new to crypto trading you know take
06:44
your time and understand the fees
06:46
because there are a lot of fees when
06:48
trading and you have to do better than
06:51
those fees to make that trade worth it
06:53
which is why number three
06:56
fees everything has fees let’s say
06:59
you’re trading on coinbase if you’re on
07:01
coinbase the regular site it has a 1.5
07:04
trading fee if you’re on their more
07:06
professional trading site coinbase pro
07:08
they have a 0.5 percent trading fee and
07:12
that means if you’re buying and selling
07:14
you’re trying to predict if the coin is
07:15
going up or down uh it doesn’t really
07:18
matter if the coin price moves a small
07:20
amount it really matters if your trades
07:23
make more than that trading fee so each
07:25
trade has to make 0.5 or more just to
07:28
outweigh that fee which means if you are
07:31
going to buy and sell you know buy low
07:34
sell high you need to make a profit of
07:36
at least one percent to
07:39
outweigh that trading fee because it’s
07:41
0.5 to buy 0.5 to sell you need at least
07:45
one percent to outweigh that fee now
07:48
every platform has a different fee
07:50
whether it’s for the trading fees or the
07:53
spread a lot of the more professional
07:55
platforms that are in exchange they are
07:57
going to have trading fees and they can
08:00
range for much different prices i
08:03
personally use the lowest fee ones
08:05
finance kucoin and pionect’s pioneer
08:08
sponsors of this channel and i would
08:10
recommend them there will be a referral
08:12
link in the description because they
08:14
have the lowest trading fees at 0.05
08:17
percent they are a broker for finance
08:19
which means if you’re from the us and
08:21
you’re worried about kyc they don’t
08:24
really do kyc and you can access all the
08:27
quality coins on finance because if you
08:30
are trading and you are a new trader you
08:32
are looking for coins to buy
08:34
it makes sense to stay on the big
08:36
platforms like coinbase and binance
08:38
because they thoroughly vet the coins
08:41
being listed there and the chances of
08:43
you getting scammed are very low
08:45
more about the fees
08:47
there are a lot of fees when trading so
08:50
we talked about trading fees there’s
08:52
also fees built into the spread you’re
08:54
gonna see that on platforms like voyager
08:57
etoro and robinhood which we’ll take a
09:00
look at here’s some screenshots of the
09:02
buy price and sell price when looking at
09:05
robinhood each of these fees are more
09:07
than zero point one percent so you are
09:09
paying more in fees than you would be on
09:12
finance kucoin and pionics but of course
09:16
there’s also a trading spread you want
09:18
to make sure that the trading spread is
09:21
very low so you’re not paying a premium
09:24
what really matters is how much coins
09:26
are you getting for your money you have
09:28
a thousand dollars you want to get as
09:30
close to a thousand dollars worth of
09:32
coins as possible then there’s
09:34
withdrawal fees every platform has
09:37
withdrawal fees and it also depends on
09:39
the network if you’re on one of the
09:42
major us exchanges in platforms a lot of
09:45
them operate on ethereum on the erc20
09:48
network so you are going to be paying
09:51
much more in fees if you’re doing any
09:53
transfers on that network where fees can
09:56
be anywhere from 20 to 35
09:59
sometimes even higher in times of high
10:02
volatility and high network use so if
10:06
you actually want to see what those gas
10:07
fees look like we can take a look so
10:10
this is etherscan.io
10:12
and this is the gas tracker and you can
10:14
see to move an erc20 token at the moment
10:17
so this is this time now it’s going to
10:19
be very different when you see it it’s
10:22
going to cost at least 23 to 25 dollars
10:24
worth of gas using una swap will cost
10:27
between 71 to 78 dollars removing or
10:31
adding liquidity 62 to 68
10:34
now cast fees will fluctuate if you are
10:37
operating from your own personal wallet
10:40
especially on the erc20 network these
10:42
are the fees you’re going to be
10:44
responsible for and a lot of people new
10:46
to crypto investing don’t understand
10:48
that they have to pay these gas fees you
10:51
need ether in your account to operate
10:53
things if you’re withdrawing a coin like
10:55
ship to your personal wallet
10:57
and you don’t have any eath in your
10:59
wallet you’re going to have that ship in
11:01
your wallet but you can’t take it out
11:02
because you need as gas to fund that
11:05
transaction so for the most part
11:08
operating on a centralized exchange for
11:11
a new user is great sure you’re not
11:14
responsible for your coins too
11:17
a lot of people say not your keys not
11:18
your crypto but if you are a new user
11:21
and you’re not familiar with any of this
11:23
your crypto is significantly safer on a
11:27
centralized exchange i know people are
11:29
going to say otherwise but
11:32
new users
11:33
not that responsible and
11:36
learning the intricacies of the fees and
11:38
moving things around and staying safe is
11:41
something that you learn over time and
11:43
not something you can pick up
11:44
immediately as a new user and as for gas
11:47
fees it always depends on the network
11:50
ethereum is going to be high it’s going
11:52
to be much cheaper on finance smart
11:54
chain salana
11:57
polka dot any of the other networks are
11:59
going to be significantly cheaper so
12:02
understand where you’re moving coins
12:04
what you’re using and what are your
12:06
options i recommend to a lot of people
12:09
trying to move their coins off coinbase
12:11
to something like pionx or kucoin or any
12:14
other type of platform to buy litecoin
12:18
make that transfer because it’s going to
12:20
be less than a penny to withdraw from
12:22
coinbase and then you trade that
12:24
litecoin for usdt or whatever you want
12:28
on that platform you just move those
12:29
coins to something like litecoin has low
12:32
fees and it’s supported everywhere and i
12:34
kind of use it as a way to move money
12:37
around especially in small amounts now
12:40
if you’re transferring like 10 000 worth
12:43
of coins or even more than that
12:45
those trading fees are going to outweigh
12:48
that savings and gas and it makes sense
12:50
to just pay that gas fee for people
12:52
trading less than ten thousand dollars
12:54
i’m talking about a thousand dollars or
12:56
less and you want to save those gas fees
12:58
because it’s going to be a hit to your
12:59
account it does make sense to have this
13:02
intermediary coin with low network fees
13:05
to make those transfers so
13:07
that sounded confusing even i heard what
13:09
i said
13:10
but
13:11
uh the key to this is understanding what
13:13
the gas fees are and what options you
13:15
have to make trades at lower rates and
13:18
get full value
13:20
number four staking all right this video
13:22
got way too long because there’s a lot
13:24
of stuff on fees but staking is one of
13:27
the easiest ways for you to earn crypto
13:29
passive income for holding your coins a
13:32
lot of coins will offer staking rewards
13:35
or something similar
13:38
i’ve covered that in multiple videos and
13:40
i will have a playlist at the end of
13:42
this video uh explaining all the
13:44
different places where you can get
13:46
crypto passive income at least for the
13:48
topics i’ve already covered feel free to
13:51
let me know in the comments if there is
13:53
a specific platform you want covered um
13:56
if it’s big enough
13:57
i’ll cover it if it’s like a really
13:59
small platform and a small coin but
14:01
wants attention i’m gonna skip it so
14:04
with staking there are a lot of
14:06
different places uh i really like
14:08
binance.com if you’re eligible for that
14:11
because you can do staking within their
14:13
exchange you can also do staking on
14:16
kucoin it does have less options and if
14:19
you are going to stick your coins look
14:21
up the name of your coin and staking in
14:23
google and then see what your staking
14:26
options are because just by holding that
14:29
coin within a certain platform you can
14:31
see massive rewards especially if you’re
14:34
long-term you understand what they’re
14:36
doing you you love their community and
14:38
you see them continuously building that
14:41
is a great coin to stake and hold long
14:43
term for me personally i’m staking a lot
14:46
of different coins in a lot of different
14:47
places but there’s none i necessarily
14:50
want to recommend because maybe it’s
14:52
going to be a short-term trade maybe
14:54
it’s something with a small market cap
14:55
that i don’t want to reveal because i
14:57
don’t want to have people uh buy that
15:00
coin without understanding what it is so
15:04
if you’re in my discord which i’ll leave
15:07
a link in the description or if i forget
15:09
there you’ll you’ll see what the link is
15:11
in at the end of the video and you can
15:14
join the discord i do talk about some of
15:16
these things and why and i do tell you
15:18
that hey this is high risk but i’m going
15:21
for it and number five scams
15:23
i don’t like recommending coins because
15:26
i have influence and a lot of youtubers
15:29
do and not everyone is honest about when
15:32
a video is sponsored i recommend not
15:35
trusting anyone and just researching it
15:37
for yourself i try to give a lot of deep
15:39
dive information otherwise i just don’t
15:42
give that information because uh it is a
15:44
lot of work to do i might just make some
15:46
shorter videos about why some of my
15:48
investments did well or not but there
15:51
are a lot of scams in crypto anyone can
15:53
make a coin i’ve made several videos on
15:55
that but yes you can make a coin very
15:58
quickly
15:59
if you’re new to cryptocurrency just
16:01
stay on the big exchanges especially
16:03
when you’re managing your own coins your
16:05
meta mask that your personal wallet can
16:07
be compromised your wallets within your
16:09
phone can be compromised your copy and
16:12
paste function within your computer can
16:14
be compromised there are so many
16:16
different ways to be scammed or hacked
16:18
that very likely within your first year
16:21
of crypto trading you are going to be
16:23
scammed that’s happened to me that’s
16:25
happened to a lot of people i know and
16:27
from that you learn to be more cautious
16:29
i’ve heard a lot of stories personally
16:32
from people that were reaching out to me
16:34
for help about how to uh get unscammed
16:36
and get their money back but for the
16:39
most part within cryptocurrency there’s
16:41
it’s unregulated once that money’s gone
16:44
it’s gone so i know that’s not detailed
16:46
advice on how to not get scammed but the
16:49
safest thing you can do if you are a new
16:52
crypto trader is to
16:53
slowly and use a small amount of funds
16:57
to get comfortable with decentralized
16:59
finance managing your wallet restoring
17:02
your wallet saving things before putting
17:04
a significant amount of money into it
17:07
because you should be investing money
17:09
you can afford to lose because crypto is
17:11
very volatile if you’re just comfortable
17:13
trading and just keeping things simple
17:16
stay on the big exchanges they are safer
17:19
i know some people might say otherwise
17:21
but if you are a new user and you’re
17:23
really bad at managing passwords or
17:25
keeping your computer secure you’re
17:27
gonna be a lot better off on a
17:29
centralized exchange and just big ones
17:32
i’m talking about the the big exchanges
17:35
coinbase finance
17:37
gemini any of those platforms that are
17:40
secure they’re insured and they provide
17:43
coin custody services and with that i
17:45
hope you learned a lot and you hit that
17:47
like button that helps me out this was a
17:49
pretty casual video just because there
17:51
were a couple topics i wanted to share
17:52
because a lot of people keep asking me
17:54
this and i’m just gonna point them to
17:56
this video so with that i hope you got
17:59
your full value for today
18:06