Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Investments

Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Cryptocurrency for beginners, where to start?

30 replies

PandoraRocks · 14/04/2021 15:34

I know hardly anything about Bitcoin etc but I do know a few people who have made 5k in a year. Are there any good podcasts or videos that explain the basics?
Even my plumber has invested in Cordano ADA and I notice the coins have increased from 89p to £1.50. Is it worth investing £500 in ADA or will it never reach the dizzy heights of Bitcoin?

From the limited amount I have read, it seems Bitcoin has grown in value because people keep buying it. It has no intrinsic value cause it's not realGrin. You can't use it to buy stuff.
What happens when people stop buying it and/or the last Bitcoin is mined? Will it be worthless? Also, the mining uses huge amounts of energy and is therefore very destructive to the environment. Maybe governments will ban it for this reason?

I remember when Bitcoin was £1 a coin. I just thought it was a scam🤣.

OP posts:
Plumtree391 · 14/04/2021 15:36

I would like to know too, thanx for posting this.

PandoraRocks · 14/04/2021 15:36

Also, forgot to ask, what's the best way to buy it?

OP posts:
castaway11 · 14/04/2021 20:16

I'd recommend the 'women take stock' podcast about 4 women that are newbies to stocks and crypto in the US. Someone on another thread mentioned it and I found it really useful.

Re the environment cost of mining. I'm sure it does take huge amount of energy but I wonder how this compares to the printing and processing of $€£ which has physical coins, notes and banks?

To start I'd read up as much as you can, make sure you understand the technology and have a grasp of how money and finance work. I liked the book 'the bitcoin standard' to understand the basics of money.

You can buy crypto from sites such as binance and crypto dot com.

Start small. Stay away from anyone on social media that says they can get good returns on your behalf. The crypto queen podcast won't teach you to trade bitcoin but does highlight some of the scams out there!

castaway11 · 14/04/2021 20:24

Sorry just noticed your other questions. It has value because people believe it has value, just like how people have agreed gold is valuable. And you can buy loads of stuff with crypto and more vendors are accepting it as payment. You can buy a tesla with it now.

One of the reasons people buy crypto is because governments are printing more money so the value of the money drops. Because bitcoin is finite it should, in theory, retain its value even when fully mined. In fact its scarcity might make it even more valuable.

Hope that helps to start!

QueenofBrickdon · 14/04/2021 20:25

I use Coinbase. It's good because you can watch videos about the different coins and 'earn' small amounts. I've got about £80 in my account from an initial investment of £30.

I honestly wouldn't put a lot in as it's very volatile but I like to play around with a small amount. I have bigger sums in stocks and shares though.

QueenofBrickdon · 14/04/2021 20:30

If anyone is Interested I have a referral link for Coinbase.

disclaimer
We both get £7.26 of Bitcoin when you buy or sell £72.55 of crypto if you use this link.

coinbase.com/join/stephe_di?src=ios-link

vickyp0llard · 15/04/2021 10:36

I watch a lot of YouTubers (Andrei Jikh, Stansberry Research, Anthony Pompliano) - there's a lot of videos explaining the basics. There's also a good thread on HousePriceCrash where people post the latest updates/tweets, though it does seem to be a lot of misogynistic blokes so I only check that once in a while.

The "it has no intrinsic worth" argument can be used for just about anything - paper money only has value because governments say it does, gold only has value because we've decided it's a store of value. Bitcoin is currently seen more as digital gold, a store of value, rather than a viable currency (though IDK, that could change). The selling point is that there's only a limited amount that can be mined, and it's decentralised, so no-one "owns" it. Every 4 years the mining reward halves, and around those times the price jumps up too.

Governments have tried banning it, but they can't, because people will buy it anyway - how can you ban something online? Loads of governments have started mining it instead, and in most countries it's taxed as an asset. In the UK it comes under CGT.

Part of the reason it has so much value is because it's so expensive to mine - if it was free to mine, anyone could do it, and it therefore wouldn't have value. Supply/demand.

The reason it's shot up recently is because of inflation fears with covid money printing (furlough, helicopter money e.t.c.), and because big companies like Tesla, Square and Microstrategy publicly announcing they've invested millions in it. Payment companies like Paypal have also started allowing people to buy/sell it, so it's gained a lot of mainstream press.

Personally I've put in some really piddly amounts (£10 3 years ago and £100 in Feb) and am kicking myself, as it's gone up loads since, wish I'd stuck the whole house deposit on it!

vickyp0llard · 15/04/2021 10:41

Also, this is probably obvious but don't fall for any YouTube comments where someone recommends a broker that will trade for you, they're all scams

fromdownwest · 15/04/2021 13:05

Coinbureau on Youtube is a wonder and wealth of information, he does go pretty deep though.

I find that Every Bit Helps is more manageable, as she focuses on the major points of Crypto.

SwimBaby · 15/04/2021 14:09

I use Etoro for buying snd selling Bitcoin, Litecoin and Ethereum. I find the app easy to use and it’s easy to withdraw profits into my bank account.

fromdownwest · 15/04/2021 15:27

I personally run Coinbase Pro for BTC and ETH
Kraken for XRP

and I have an exodus wallet combined with a Treznor cold storage key

lineagerq · 10/07/2021 09:48

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

WobblyLondoner · 11/07/2021 11:13

There is a good radio 4 moneybox episode that covered cryptocurrency. Well worth a listen, I found it helpful as someone who knows nothing at all. Via bbc sounds.

Vakaren · 07/04/2022 08:24

Thanks

Fluffyhairteddy · 07/04/2022 12:00

Slight aside but before you think about crypto or indeed any other investment are the rest of your finances in a positition where you should be looking at dabbling at such a risky asset? Any Financial Advisor will tell you that unless you e got no bad debt, an emergency fund of 3-6 months etc investments should wait. Not meaning to be the doom and gloom merchant but if you are still paying high interest say on credit cards/finance or have no back up in the form of a sinking fund it really is key to sort that out. Crypto is really the “cherry on top’ to the average joe and it’s easy to buy into all the social media noise of how easy it is to make money. The reality is as crypto is so volatile it’s anyones guess and the only punt you should take is money you are literally ready to lose. Traditional long term investing in the form of equity investing via passive trackers, held for a long time via an isa or pension wrapper really should form the mainstay of investments.

Howdidthathappen1 · 08/04/2022 13:23

I put in 220 quid which was flight refund money I had written off last May via ziglu.
Not going to lie - I don't understand it and split between cardano/ tezos and a block chain thing by the informed method of closing my eyes and pointing my finger at the screen! Over the year its been worth between £500 and £150 as its so unpredictable.
I don't plan on putting more in but happy to sit and watch the roller coaster with my fingers crossed!

Warner31 · 10/04/2022 13:25

I think with crypto it is a lot riskier than stocks but if you hold it for say 5-10 years then returns could be a lot assuming crypto becomes more widespread as a concept in the next 10 years.

Cailleachian · 21/04/2022 13:07

I'd recommend starting with bitcoin, until you get familiar with crypto.

Bitcoin is the most "solid" crypto, its unlikely to ever fall below around £15k (currently £30kish), everything else is a considerably more risky.

Coinbase is a great place to get started, but once you get comfortable move it off an exchange into a wallet that you hold the private key for. As people have said they also have "coinbase earn" where you get small amounts of coins for learning about them, its a great way to pick up some knowledge of alts and get some exposure while you learn more.

Once you are familiar with bitcoin, the next thing to look at is probably Ethereum, which has much more functionality than btc,

Some people like ADA, I'm not very keen for long and extensive reasons, but if you dont know why you are choosing ADA over btc, other than "number go up", then I'd advise staying clear, (which applies really to all other cryptos).

You cant really go wrong with bitcoin over a 4 year timeframe, other coins are much more of a risk.

Fluffyhairteddy · 21/04/2022 21:01

“You can’t really go wrong with bitcoin…” honestly? An unregulated, new, volatile asset that is not tethered to anything tangible??? I’d gently suggest a lot can go wrong. I’d only invest what you are 100 per cent prepared to lose OP

Cailleachian · 23/04/2022 14:41

Yeah, dont stick your rent money in it!

Its super volatile and can drop 20/30/40% in a couple of hours, but I'd still advise everyone to have at least a tenner in bitcoin

Fedupsotired · 23/04/2022 14:57

This is probably shit advice but I just used my PayPal account and bought £40 in two different currencies. Currently running at a loss but I decided I could lose £40 if needs be (it's worth £32 today) but it can just sit there and see what happens!

Helenahan21 · 09/05/2022 19:38

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Zilla1 · 09/05/2022 19:38

Does anyone understand what steady state looks like for bitcoin, what the incentive will be to incur costs to mine it and enable its use for transactions once the cap is reached and miners can't be rewarded with fragments of a coin?

Cailleachian · 10/05/2022 02:30

The last satoshi isnt mined until 2140, so thats a while away yet, but the assumption is that as btc becomes more well used, the fees that are paid to the miners will take over as the main source of revenue.

HerRoyalNotness · 10/05/2022 03:07

Following to learn.

what on earth are they “mining” and how can something virtual run out?

Swipe left for the next trending thread