Methods For Acquiring Crypto

There are essentially two methods used to get involved with crypto. As to which method is the best I think relies entirely on each person’s plan or duration of involvement within the various currencies. I recommend you ask yourself these two questions.

  • What do you want out of crypto?
  • How long are you willing to invest to see a return?

After you answer these questions consider the following…

 

Mining

Mining is a process for solving the blockchain which results in a reward for miners of the coin. Basically, it’s a job for your lazy graphics cards and CPUs! This method takes the longest to get crypto but there are many people that have reaped great returns on their initial investment of hardware.

Pros:

  • Long-Term Returns

    • It’s true the every couple of weeks difficulty of mining goes up down or sideways, but if you’re long-term bullish on crypto like me, you probably won’t mind the time it takes to see returns. Warren Buffet said, “The market is a tool to remove money from the impatient and give it to the patient.”
  • Limited Risk

    • So let’s assume the worst and your coin goes to zero! This was just a phase the out valued GOLD by 3x! Sure you’d be out money for the equipment but if you cash out along the way you’re never truly “all in.”
  • Outsourceable

Cons:

  • Initial Cost

    • Cost is always a factor to consider in every business venture. However, if you’ll long-term bullish on a particular currency it’s not too hard to justify buying a couple of hundred dollar graphics card to test the waters. Building a dedicated mining rig can get expensive pretty quick, so it’s better to measure out the total cost ahead of time.
  • Time

    • I understand the urge to get rich as fast as possible and mining is by no means to answer to this impulse.

Exposure: Long

Who Should Choose The Mining Method?

I think anyone with a long-term interest in crypto should consider mining. It has scalability, a quasi-form of passive income, and is less stressful than just dumping all your money and hoping for an up or downtick. I like it even though I’ve even traded equities for the last 3 years fairly actively.

Buying/Selling Directly From An Exchange

Yep, that’s right you can trade, speculate, or hedge on these coins. If I was convicted about directional momentum one way or the other about what was happening to a certain coin, this would be a great way to express it. Ever since the beginning of time, the bulls and bears have been at war who will win out in the long run in crypto? Only time will tell but I’m on the bull side at the moment anyway. :p

Pros:

  • Flexible

    • For those of you that might be new to trading, most brokers offer the ability to make money on either side of the move. Long (You make money when the price goes price goes up.) or Short (You make money when the price goes down.)
  • Scalable

    • By scalable I mean you can be in or out of the market as much as you want. Most real traders only go big on the highest probability setups.

Cons:

  • Time

    • Most of the time it takes a good 2-5 years for a trader to develop/learn a system and finally break even or become profitable.
  • Market Tuition

    • The market has its own cost if you try to skip out on the first con. I don’t advise anyone to jump in the market without lots of guidance and conviction. 90% of traders lose so don’t be a part the statistic. Towards the bottom of this page, I give some mentors I’ve had in the past that I think are worth listening too.

Exposure: Long/Short

Who Should Choose The Exchange Method?

If you were convicted of something going on the market and you’ve already had a lot of rigorous studies in the market, I’d consider trading. However, this is still a new market and as earlier in 2017 showed us crypto can be both extremely dangerous and rewarding. If you’re looking for some resources about how to get involved in the stock or crypto markets here are some that I recommend.

 

  • Content Worth Getting

    • Trading Tickers
      • This course is taught by Tim Grattani ( One of Timothy Sykes‘ first millionaire students) He is a short biased trader in a big way known mostly for his high-risk high-reward trading style.
    • Trading Around Equilibrium
      • This course is taught by Matti Owens, he teaches you how he uses the Ichmuchi Kinko Hyo trading system how to develop a fundamental/technical thesis for trading as well as advanced charting.
    • Quant Trading 101
      • This course is also taught by Matti Owens, he teaches you how to make your own algorithms and how to think in the world of odds, not the risk.
  • Traders Worth Listening To

    • Timothy Sykes
      • Tim isn’t a crypto trader but as we all know crypto is full of scams and he has been making money off scams for the last 20 years both long and short. In doing this he turned 12k into 4.5 million dollars trading mostly with small accounts.
    • Matti Owens
      • Matti isn’t a crypto trader either but he has become a millionaire over the last 3 years from refining his trading systems in futures.
  • Exchanges

    • CoinBase
      • This exchange is almost a must for cashing out your profits from trading. You can receive payment directly to your bank account or PayPal.
    • Local Bitcoins
      • Maybe you’re kinda old school and you don’t like trading on exchanges, this allows you to trade with people, not machines.
  • Wallets

    • Exodus Wallet
      • This wallet holds about 15 (currently) different types of cryptocurrencies.
    • Ledger Wallet
      • This is a secure portable hardware wallet.
  • Scanners

    • TradingView
      • In my humble opinion, I think this is by far the best charting tool on the market concerning cryptocurrencies.
  • Lending

    • Bitconnect
      • Maybe getting coins isn’t your problem but rather making that money work for you. Bitconnect allows you to lend money to their trading bot and in exchange you are paid a variable interest rate. The normal rate is between (1-2% per day) I made 15% in 10 days lending with them!
  • Hardware

    • Bitcoin Miner
      • Cloud mining, not your thing? Consider this high-quality Bitcoin miner.
    • Dashcoin Miner
      • Not hyped about Bitcoin? Consider Dashcoin. I think this miner is by far the most profitable on the market.
    • Litecoin Miner
      • Ah, so you’re still here? Check out this Litecoin miner. Its profitability is definitely something to consider.

OTHER ARTICLES OF INTEREST

Check out my articles on How To Get Started Investing In Crypto & The Crypto Toolkit they are both great resources for beginners.

Need a more secure wallet? Check Out Ledger’s Hardware Wallet

How does 1% a day for 300 days sounds? Check out my article on Crypto Lending only if you like money that is.

Interested in mining crypto? Consider Genesis Mining they are my preferred mining company.
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