Introduction
- This is a cheatsheet meant to quickly onboard people to Bitcoin and crypto
- These are all the basics I find myself explaining when introducing Bitcoin and crypto to people
- Hodl: Misspelling of “hold”; Popularly stands for “hold on for dear life”; One of the legends of Bitcoin lore
tl;dr
Here’s a tweet thread I wrote to sum up how to get started in Bitcoin and to illustrate the most basic concepts.
Getting Started
- Crash course yourself on Bitcoin with the Bitcoin Wikipedia article, the Bitcoin Whitepaper, YouTube videos, Online Bitcoin Courses (eg. Udemy), etc.
- Understand the nature of Bitcoin and crypto, where it came from, its intentions, its blockchain technology, its pros and cons, its place in the world versus other currencies or stores of value (eg. gold), and its property of being a global currency. This will provide the conviction to feel confident to proceed with crypto.
Buying Crypto
- You will probably buy your first crypto on an exchange but there are other options including ATMs and local face-to-face buying and selling
- Never spend more than you can afford to lose
Bitcoin
- Bitcoin’s Early Inflationary Cycle (2009 to the present)
- Bitcoin has a history of repeated multiple times gains, followed by 80%+ crashes, followed later by new all-time-highs
- Ex. In 2017, Bitcoin reached nearly $20k USD, crashed to nearly $3K (~85% crash), followed by a 2020/2021 rally to more than $30k.
- This is the game in an unregulated asset that is in an early inflationary stage
- Don’t panic sell during these crashes
- Those who know this cycle are confident even during crashes and reap the rewards on the next up-cycle
- Bitcoin has a history of repeated multiple times gains, followed by 80%+ crashes, followed later by new all-time-highs
- Bitcoin has always been far and away the leading and most trusted crypto. You will be tempted to buy altcoins, and like stocks it’s fair to have a portfolio, but represent most of your money in Bitcoin to maximize your gains.
Security
- Never store your crypto on an exchange for longer than you have to (because exchange’s are prime hacking targets)
- Withdraw your crypto from an exchange as soon as possible
- Never share your password, private key, or recovery phrase with anyone
Exchanges
- Avoid new or sketchy feeling Exchanges
- Go with exchanges that have been around with a good track record (Coinbase, Kraken, CEX, Binance, etc.)
- Exchanges are prime targets for hacks
- Never store your crypto on an exchange for longer than you have to
- Withdraw your crypto from an exchange as soon as possible
Wallets
- There are Exchange Wallets, Web Wallets, Hardware Wallets, and even Paper Wallets
- Hardware Wallets and Paper Wallets are considered more secure than Web Wallets, and Exchange Wallets are least secure of all (because exchanges are prime hacking targets).
- List of Hardware Wallets
- List of Desktop Wallets
- List of Web Wallets
Tracking Prices and Analytics
Blockchain Explorers
Explorers allow you to look up transaction details. You might do this to check up on the status of sending or receiving crypto.
Just search for “<coin> blockchain explorer” to find explorers for your coin
Credit: Featured Image