GETTING STARTED IN CRYPTO
Red pill
If you're reading this, you’ve chosen the red pill, and this article will guide your path down the rabbit hole. We will show you where and how you can get your first Crypto, how to choose the right exchange, and at the end, how you can change your Crypto back to Fiat if you need to. Let’s get right into it.
Getting your first Crypto
There are many ways of buying Crypto. Which ‘pill’ you choose to get your first crypto is usually a tradeoff between convenience, fees, degree of autonomy, security, how much KYC you have to go through, and what’s available in your location. Let’s get an idea of what options are out there:
Centralized Exchanges (CEXs): These platforms allow you to buy and sell Crypto. They act as middlemen, holding your funds in Crypto wallets they control.
Peer-to-Peer (P2P) Platforms: P2P platforms connect buyers and sellers directly, removing third parties. P2P trading allows you to buy and sell with other guys directly but be careful. Buy and sell only with reputable people.
Non-Custodial Wallets: Non-custodial wallets allow total control over your Crypto. Crypto wallets like MetaMask, Trust Wallet, and Ledger Live allow you to connect to decentralized exchanges (DEXs) directly from your wallet interface, allowing you to buy and sell without losing control of your Crypto.
Decentralized Finance (DeFi) Products: DeFi platforms offer financial services using smart contracts and blockchain technology that can allow you to get Crypto.
Are you feeling more confused than before? Don’t worry. Here’s a short overview of the pros and cons of each on-ramping way to get your first crypto.
We have touched on exchanges in this section, so let’s explore how you can choose the best one.
Which Exchange?
When choosing an exchange, consider factors like security, reputation, user experience, and the different types of Crypto that a given exchange supports. Do a background check on the exchange's history, check user reviews, and make sure that it follows the laid down regulations. As we say in Crypto, always DYOR (Do Your Research). Always settle for exchanges with good security measures like two-factor authentication (2FA), cold storage of Crypto, and a transparent operational track record.
Enough about exchanges. Let’s look at how you can buy Crypto through a non-custodial wallet that we mentioned earlier.
Buy Crypto through a Non-Custodial Wallet
This is the easiest and safest way of buying Crypto for starters. Here are the steps to follow:
Create a non-custodial wallet. Download a reputable wallet application from Google Play or AppStore, or set up a hardware wallet. Generate and safely store your wallet's recovery phrase or private key. Please read and understand the instructions on storing your private keys because if you lose your private key, you may lose your Crypto. In Crypto, we say, “Not your keys, not your Crypto.”
Connect your wallet to a decentralized exchange(DEX). Connect to a DEX like Uniswap or Sushiswap from your wallet interface. These platforms allow you to change one Crypto for another directly from your wallet.
Select your desired Crypto. Choose the Crypto you would like to buy and select the amount. Once you’re sure, confirm the transaction details and approve the transfer.
Transaction completion. Once confirmed, the DEX will make the transfer happen, and the Crypto will be sent to your wallet.
Well, you now have your Crypto. However, you may be in a situation where you need traditional money. Have a look at the several options you have.
Changing Crypto back to Fiat
Having back your traditional money is possible through several options, but let’s look at the two common ways that beginners can use.
Centralized Exchanges
Centralized Exchanges (CEXs) usually allow withdrawing Fiat directly to your bank account. Follow the exchange's withdrawal process, and make sure you complete any needed verification requirements.
Peer-to-Peer
Peer-to-Peer (P2P) Platforms can also make it possible to change Crypto to Fiat. Link up with buyers interested in your Crypto and agree on a price and payment method.
Conclusion
You now have the basics to start your Crypto journey. Do your own research and settle on the coin that works for you. From our previous article, you saw that Crypto is real and you can use it as a means of exchange and so much more. Good luck!
