How To Get Started Trading Crypto | From Meme Coins To Bitcoin

The world of cryptocurrency can be dazzling and complex, but it doesn't have to be overwhelming. This ultimate guide will equip you with the knowledge to navigate the exciting (and sometimes wacky) world of meme coins, bitcoin and alt coins. We'll break down the basics of crypto, explore popular wallets like MetaMask and Phantom, and show you how to use exchanges like Coinbase to trade crypto, and platforms like Dextools to snag those elusive meme coins. Whether you're a crypto veteran or a curious newcomer, this guide will be your one-stop shop for understanding the wild world of digital coins and the tools you need to participate (responsibly, of course!). So, buckle up and get ready to dive into the cryptosphere!

May 31, 2024
Meta Matt
Missed Out On $JENNER And Want To Learn How To Find And Buy The Next Big MemeCoin? Or Just Looking To Get Started Investing In Bitcoin Or Solana?

Crypto Caution: Your Comprehensive Guide for Beginners

The world of cryptocurrency can feel like a foreign land, filled with technical jargon and confusing options (not to mentions the scams and sketchy links!). But fear not, intrepid explorer (shout out to StickM4n Stucy! and YodaBomb from the Pennybois Discord). This guide will break down everything you need to know to safely enter the crypto space, from setting up wallets to buying Meme Coins.

Other Helpful Links...

Crypto Exchanges vs Wallets 101

How To Set Up MetaMask And Coinbase

How To Set Up Phantom Wallet

Bitcoin Guide

We Had Some Members In The Pennbois Stock Alerts Discord Venture Into Our "Crypto Degen" Channel In The Discord For The First Time, And Had Some Questions About These New Solana Meme Coins Popping Up Like Caitlyn Jenner's $JENNER Coin. This Article Will Break Down

What Is Cryptocurrency?

Cryptocurrency can be a confusing term, but it boils down to a unique type of digital asset. Here's a breakdown to help you understand:

Digital Asset: Imagine it like a digital file that represents value, similar to how a stock certificate represents ownership in a company. Cryptocurrencies exist only electronically, not as physical coins or bills.

Secured by Cryptography: Strong encryption algorithms are used to secure crypto transactions. Think of it like a secret code that scrambles information, making it nearly impossible to counterfeit or steal your crypto.

Alternative Form of Payment: Cryptocurrencies can be used to pay for goods and services from certain merchants, similar to traditional currencies. However, their acceptance is still not as widespread as established currencies.

Sending and Receiving Money: You can use crypto to pay friends, family, or freelancers internationally. Here's where crypto offers some advantages over traditional methods like Paypal or bank transfers:

  • Faster Transactions: Crypto transactions can be significantly faster, especially for international payments, which can take days with traditional methods.
  • Lower Fees: Transaction fees for sending and receiving crypto on many blockchains can be lower compared to bank transfer fees, particularly for international transactions.
  • Greater Control: With crypto, you have complete control over your funds once they're in your wallet. This can be beneficial in situations where you might have concerns about intermediary control.
  • No Bank Required: Unlike traditional money transfers, you don't necessarily need a bank account to send or receive cryptocurrency. This can be particularly useful for people who are unbanked or underbanked.

The key difference between cryptocurrency and traditional currencies (like USD or EUR) is decentralization. Unlike traditional currencies controlled by governments or central banks, cryptocurrencies don't have a single entity managing them. This eliminates the need for government intervention or manipulation of the currency's supply. Those who are pro-crypto believe it fosters transparency and security. Crypto transactions are recorded on a distributed public ledger called a blockchain. This ensures transparency and eliminates the need for a central authority to verify transactions. While not entirely absent, blockchain technology can make it more difficult to manipulate the crypto market compared to traditional stock markets. Since every trade is permanently recorded on the public ledger that shows which wallets bought and sold which crypto, any attempt to artificially inflate or deflate prices becomes more easily detectable.

Bitcoin Was Created After The 2008 Financial Crisis Had The Public Questioning The Banks And Government Controlling Their Money

Crypto vs Gold and Dollars: Key Differences

Form:

  • Cryptocurrency: Exists purely in the digital world.
  • Gold: A physical commodity.
  • Dollars: Typically physical bills or digital representations in bank accounts.

Supply:

  • Cryptocurrency: Many have a pre-defined, limited supply, potentially making them deflationary (increasing in value over time).
  • Gold: Supply is influenced by mining and government reserves, but not directly controlled.
  • Dollars: Governments and central banks can control the supply of traditional currencies, impacting their value. (e.g., printing more money can lead to inflation)
The Bitcoin Halving Cut The Reward Of Bitcoin Given Per Block Mined In Half. Check Out Our Bitcoin Guide At The Top Of This Article To Learn More!

Control:

  • Cryptocurrency: Decentralized. No single entity controls the supply.
  • Gold: Governments can indirectly influence supply through import/export controls and monetary policy.
  • Dollars: Central banks have significant control over the supply and value of traditional currencies.

Governments can manipulate the supply of traditional currencies and gold to influence their value. They can limit exports of gold, adjust interest rates, or even tie their currency directly to gold (like the old gold standard). However, cryptocurrency is decentralized, so governments can't directly control its supply. They can only influence the crypto market indirectly through regulations or potentially competing digital currencies.

Volatility:

  • Cryptocurrency: Can experience significant price swings, making them a riskier investment.
  • Gold: Generally considered a stable store of value, but still subject to price fluctuations.
  • Dollars: Fluctuate less than crypto but can be affected by inflation and economic factors.

When it comes to Security, Crypto requires careful storage and management of private keys to prevent theft. Gold requires secure storage but is less vulnerable to hacking. Dollars held in bank accounts benefit from security measures and FDIC insurance (in the US).

In a nutshell, Crypto offers a potentially deflationary, decentralized alternative but with higher volatility and less certainty. Gold is a traditional safe-haven asset with moderate price swings. Dollars are widely accepted but subject to government control and potential inflation.

Step One: Understanding the Crypto Lingo

Before diving in, let's clear up some key terms:

Cryptocurrency (Crypto): A digital asset that uses cryptography for security. Think of it like digital money, but not controlled by a central bank.

Crypto Wallet: A digital storage unit for your crypto.

Hot Wallet: A crypto wallet in the form of an app or browser extension connected to the internet. They offer convenience but can be more vulnerable to hacking.

Cold Wallet: A physical device that stores your crypto offline, offering the highest level of security but less convenient for everyday use.

Blockchain: A digital ledger that records all crypto transactions securely and transparently.

Exchange: A platform to buy and sell cryptocurrencies.

Centralized Exchange (CEX): Think of it as a secure online marketplace like Coinbase. They hold your crypto for you and offer a user-friendly experience.

Decentralized Exchange (DEX): Here, users trade directly with each other, without a central authority. DEXs offer access to a wider range of crypto but can be more complex and risky.

Swapping tokens: In the world of cryptocurrency, swapping refers to directly exchanging one digital asset for another. Think of it as a trade, imagine you have some Bitcoin (BTC) but want to buy Ethereum (ETH) instead. Swapping tokens allows you to exchange your BTC for ETH directly, without needing to sell your Bitcoin for cash and then use that cash to buy Ethereum. You can swap tokens on cryptocurrency exchanges or through wallet interfaces that support swapping features. Exchanges typically offer a wider variety of tokens to swap, while wallet swapping might be more convenient for smaller, quick trades.

Seed Phrase: A series of random words that act as the master key to your crypto wallet. Never share this with anyone!

When it comes to cryptocurrency, managing your digital assets involves two key players: exchanges and wallets. Exchanges act like bustling online marketplaces where you can buy, sell, and trade a wide variety of cryptocurrencies. They offer real-time price charts and market analysis tools to help you make informed decisions. However, exchanges are designed for active trading, and it's not recommended to store your crypto there for long periods due to security risks like hacking. This is where wallets come in. Wallets are secure digital vaults for your crypto holdings, prioritizing safety and allowing you complete control over your private keys. Unlike exchanges, wallets aren't ideal for frequent buying and selling due to the transfer process involved. Think of it like this: exchanges are for actively shopping for crypto, while wallets are your secure bank vault to store your treasures.

Make Sure To Check Out ShieldFolio.com To Get A StoneBook To Keep Your Seed Phrases Safe!!

Step Two: Choosing Your Weapon - Crypto Wallets (METAMASK)

MetaMask is a user-friendly hot wallet that comes as both a browser extension and a mobile app. It's a popular choice, especially for those venturing into the world of Ethereum (ETH) and tokens built on the Ethereum blockchain (ERC-20 tokens).

Storage: Securely store your ETH and ERC-20 tokens within the wallet.

Sending and Receiving: Easily send and receive crypto to and from other MetaMask wallets or compatible exchanges.

Buying and Selling (with limitations): While not a dedicated exchange itself, MetaMask allows you to conveniently buy crypto using a linked debit/credit card through partnered exchanges.

Swapping Tokens: Swap your ERC-20 tokens directly within the MetaMask interface for added convenience.

Easy Ethereum Interaction: MetaMask simplifies interacting with Ethereum-based applications (dApps) for tasks like decentralized finance (DeFi) or exploring the world of NFTs (Non-Fungible Tokens).

Security: Remember, MetaMask is a hot wallet, meaning it's connected to the internet and inherently more vulnerable to hacking compared to cold storage wallets.

Fees: Transactions on the Ethereum network can incur gas fees, which you'll pay when using MetaMask. These fees can fluctuate depending on network congestion. Etherueum has higher gas fees than Solana, which we will be talking about in a bit.

Getting Started: Head over to https://metamask.io/ and download the extension for your browser or the mobile app. During setup, create a strong password and write down your seed phrase very carefully. Store it somewhere safe and never share it with anyone! You can also check this document out for a full breakdown on setting up MetaMask!

Exploring the Interface: You'll see your crypto holdings displayed prominently. There's a "Buy" button to purchase crypto using a linked debit/credit card (through a partnered exchange). You can also send and receive crypto using wallet addresses, similar to email addresses. The document mentioned above goes over how that works. The "Swap" feature lets you exchange one token for another directly within MetaMask.

What it Supports: MetaMask primarily supports Ethereum (ETH) and tokens built on the Ethereum blockchain (ERC-20 tokens). However, it can also be configured to work with other blockchains.

Step Two: Choosing Your Weapon - Crypto Wallets (PHANTON)

Phantom is a dedicated hot wallet for the Solana blockchain. It allows you to store, send, and receive Solana (SOL) and Solana-based tokens. It also supports Ethereum, Polygon, and Bitcoin.

Storage: Securely hold your Ethereum (ETH), Bitcoin (BTC), Polygoin (MATIC) and Solana (SOL) tokens, along with ERC-20 and SPL tokens (built on the respective blockchains).

Sending and Receiving: Seamlessly send and receive crypto between Phantom wallets or compatible exchanges.

Swapping Tokens: Swap your ERC-20 and SPL tokens directly within the Phantom interface for added convenience, great for managing your Ethereum and Solana-based portfolio.

Ethereum and Solana dApp Integration: Interact with decentralized applications (dApps) built on both Ethereum and Solana. Explore the world of DeFi (decentralized finance), NFTs (Non-Fungible Tokens), and other blockchain-based services.

Hot Wallet: Phantom is a hot wallet, connected to the internet, making it more convenient but also more susceptible to hacking compared to cold storage wallets.

Gas Fees: Transactions on both Ethereum and Solana networks involve gas fees. Ethereum fees tend to be higher than Solana's, so keep that in mind when swapping or interacting with dApps.

Setting Up Shop: Download the Phantom extension or mobile app from https://phantom.app/. Similar to MetaMask, create a strong password and safeguard your seed phrase during setup. Make sure to check out this document going over how to set up Phantom Wallet in detail.

Navigating Phantom: The interface is clean and user-friendly. You'll see your SOL and Solana tokens listed, along with options to send and receive them. There's also a swap feature and access to Solana-based DeFi (Decentralized Finance) applications.

Step Three: Entering the Marketplace - Crypto Exchanges (COINBASE)

Coinbase is a popular centralized exchange (CEX). Check out this document on Crypto Exchanges vs Wallets 101

Why Coinbase? It's a beginner-friendly platform with a user-friendly interface and supports a wide variety of cryptocurrencies. You can easily buy crypto using your debit/credit card or bank transfer.

Exchanges vs. Wallets: Think of Coinbase as a secure shop to buy and sell crypto, while MetaMask and Phantom are your personal vaults to store them. Coinbase holds your crypto for you, while wallets give you complete control (and responsibility) for your holdings.

What You Can Do on Coinbase: You can buy, sell, transfer, and convert cryptocurrencies on Coinbase. They also offer features like staking (earning rewards on certain coins) and educational resources to help you learn more about crypto.pen_spark

Exploring the Wild West: Decentralized Exchanges (DEXs)

Dextools.io is a platform that aggregates data from Decentralized Exchanges (DEXs). These are peer-to-peer exchanges where users trade directly without a central authority.

Why Use a DEX? DEXs offer access to a wider range of cryptocurrencies, including meme coins and new projects, often not available on Coinbase or centralized exchanges. However, DEXs can be more complex and carry higher risk. Here's a step by step guide on how to buy crypto off of Dextools.io:

  1. Navigate to Dextools.io: Head over to the Dextools website https://dextools.io/
  2. Find Your Token: Search for the cryptocurrency you want to buy by name or by pasting the contract address into the search bar on Dextools.
  3. Connect Phantom Wallet: Click on the "Connect Wallet" button and choose "Phantom" from the available options. Follow the on-screen instructions to connect your Phantom Wallet to Dextools.
  4. Review the Swap Details: Dextools will display the current price, trading chart, and liquidity pool information for your chosen token.
  5. Set Swap Amount: Enter the amount of the desired cryptocurrency you want to purchase. Dextools will automatically calculate the equivalent amount of SOL required for the swap, considering the current exchange rate and fees.
  6. Set Slippage Tolerance (Optional): Slippage refers to the potential difference between the quoted price and the final execution price (explained earlier). You can set a slippage tolerance in Phantom to prevent failed transactions due to price fluctuations. A higher tolerance allows for smoother buying but might result in a slightly less favorable price.
  7. Initiate the Swap: Once you've reviewed all the details, click on the "Swap" button. Confirm the transaction in your Phantom Wallet.
  8. After the Swap: The transaction will be processed on the Solana blockchain. You might see a confirmation message on Dextools and within your Phantom Wallet. Depending on network congestion, it might take a few moments for your purchased crypto to appear in your Phantom Wallet.

Keep in mind that you'll incur transaction fees on the Solana network for the swap. These fees can vary depending on network traffic. Before buying any cryptocurrency, it's crucial to do your own research and understand the risks involved.

How to Hunt for Meme Coins in the Wild West of Crypto

The world of meme coins can be exciting, but also highly speculative. Here's a roadmap to help you find these sometimes elusive social media darlings:

Social Media Buzz: Meme coins often gain traction through social media hype. Follow crypto influencers and communities on Twitter, Telegram, and Discord to see what coins are generating buzz. Make suer to check out our "$50 Crypto Account Follow Along" Channel in the discord to stay up to date! Make sure to follow Meta Matt and BTC Jay!

Meme Coin Websites: Several websites track and list meme coins. Explore sites like CoinMarketCap's meme coin category or dedicated meme coin tracking websites.

Emerging Coin Listings: Keep an eye on new listings on cryptocurrency exchanges. Meme coins often see a surge in popularity after exchange listings.

Be Careful Trading Meme Coins. They Typically Have Big Rises/Pumps Followed By Big Falls/Dumps

Bitcoin vs Alt Coins vs Meme Coins

Bitcoin: The OG of cryptocurrency. Known for its limited supply (21 million coins), established network, and role as a digital store of value. Think of it as the gold standard of crypto.

Altcoins (Alternatives): A vast and diverse category encompassing all cryptocurrencies other than Bitcoin. This includes established projects like Ethereum (Ether) with smart contract functionality, stablecoins pegged to real-world assets (e.g., US Dollar), and even utility tokens used for specific purposes within a platform.

Memecoins: A subcategory of altcoins often created as a joke or based on internet memes. They typically have limited real-world use cases and rely heavily on social media hype and community support for their value. Think of them as the dogecoin of the crypto world, all bark and some potential bite, but with a higher risk of going bust.



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PennyBois

PennyBois is a group of experienced traders dedicated to providing hedge fund quality trade alerts without the cost.