Share your Success
I don't know about you, but I can't help but share things that I find awesome with my friends; from restaurants, to movies, or even technology like cryptocurrency.
So today, in our Big News section, I wanted to share with you the easiest way to buy cryptocurrency. If you haven't already purchased, here's your guide. If you have purchased, here's an easy way to help your friends.
The Big News: Share your Success
Step 1: Sign up for Coinbase, with this link you will get $10 of bitcoin with your purchase. Coinbase is the most user friendly way to buy. Here you can purchase Bitcoin, Litecoin, and Ethereum by connecting your bank account (1.5% fee) or via credit card (3.99% fee). It typically takes 4 days for your currency to arrive, but you lock in the price upon purchase date. Coinbase then acts as a wallet for your currency. A wallet is similar to a bank account, just a place to store digital currencies.
Step 2: In order to trade one cryptocurrency for another, or convert your crypto back to fiat currency, I recommend using GDAX. GDAX is an exchange affiliated with Coinbase, so all you need to do is login with your Coinbase credentials. GDAX only charges a 0.15% fee for any trades, so it's easy and the fees are very low to trade between different currencies without taking the money in and out of your bank account.
Skip to Step 4 if you don't want to purchase more than Bitcoin, Ethereum, or Litecoin.
Step 3: If you want to buy additional types of cryptocurrencies, I recommend starting with Kraken. Kraken allows you to purchase the following: Bitcoin, Ethereum, Litecoin, Ethereum Classic, Augur, Ripple, Dash, ZCash, Monero, Gnosis, and a few others.
You first need to verify your identify. Here are the various verification tiers and requirements. I recommend Tier 3. You can read the Why all the Verification blog post to understand why this is required. Once verified, you can either deposit USD via a wire transfer (yes, a wire transfer), or you can send the cryptocurrencies directly from your Coinbase account.
Step 4: Decide how much money to invest. You should never invest more than you are comfortable losing. Depending on your situation and risk tolerance, this amount could vary widely, but I'd suggest starting with between 2-5% of your investable assets as a maximum. How to structure your crypto portfolio allocation is a topic for another day, but a diversified portfolio will include exposure to Bitcoin, Ethereum and a small mix of other Alt Coins.
Step 5: Secure your accounts. Be sure to subscribe in order to receive next week’s newsletter about how to secure your private keys, which allows you to store you cryptocurrency outside an exchange.
This was one of the most popular posts in crypto this week. @WhalePanda offers some harsh but logical criticisms of Ethereum and its recent skyrocket in price and all of the marketing hype around the ICOs, most of which are built on top of Ethereum or the ERC20 token standard. If you’re holding Ethereum, strongly encourage you to read this post. Link
Speaking of ICOs, last week’s largest ICO record was shattered as Bancor raised over $150M. Famed VC Tim Draper was notably among the investors in this round. Link
Tired of all this financial talk? How about some music? Imogen Heap in the Harvard Business Review explores how blockchain can bring value back to musicians. Link
A new report from Deloitte predicts that 10% of Global GDP will be stored on Blockchain platforms by 2025. (That means $8 Trillion in case you were wondering). Link
Jeremy Epstein delivers an entertaining and informational talk on the wide reaching impact that blockchain can have on society (you can watch it at 1.5-2x speed). Link
- When investing in equities, we all rely on standard metrics like PE ratio to help us understand the value of the companies we invest in. Where are the metrics for cryptoassets? Chris Burniske of ARK Invest delivered this presentation at Token Summit exploring the “Crypto P/E Ratio” (Network Value/Daily Transaction Volume) and other metrics including how to value open source developer contributions. Link
Chart of the Week
Chris Burniske posted a very interesting Tweet stream comparing the recent run up in ETH to the infamous BTC run in 2013. In 2013 Bitcoin appreciated 20X in 150 days; Ether has appreciated 40X in the past 150 days.