Today's video is going to be the ultimate fast-paced crypto crash course in under
10 minutes where we will cover all of the confusing crypto terminologies,
talk about the best tools for trading crypto and even show you how you can make your first
$1000 with cryptocurrency. Alright, let's jump right into it.
What is going on everyone I hope you are all having a fantastic day. Okay first of
all let's give a clean and simple definition to some of the weird crypto terminologies
just to make sure we're on the same page before we talk about how you can safely and effectively
invest in cryptos. First, we have blockchain which is the secure and decentralized system
that records information and essentially this is the technology that crypto-related projects
are built upon. This is different from an exchange since an exchange is the place where you exchange
one cryptocurrency for another and exchanges can either be centralized like Binance or
decentralized like Uniswap. On these exchanges, you can also convert what's called your Fiat
for cryptocurrencies and vice versa and a fiat currency is one that is backed by a centralized
government meaning something like the US dollar is considered a Fiat currency. On the flip side of
that coin, you have DeFi which is just the general abbreviation for decentralized finance. Similarly,
you will also hear the term dApps which is just decentralized apps meaning it is an application
that runs on a decentralized platform. Mining is the process of computers solving complex math
problems in order to earn the ability to verify transactions on the network. Staking, on the other
hand, is essentially when you are locking up your cryptocurrencies for a set amount of time in an
effort to support that particular network and in exchange you get that crypto paid back to you like
passive income. Gas fees are the fees that you pay for sending a cryptocurrency to a crypto address
which is simply a specific place to send and receive crypto's just like you’re physical
address where you receive mail. An altcoin is any cryptocurrency that is an alternative to Bitcoin.
A hard fork is simply when a disagreement may arise within a particular cryptocurrency
oftentimes causing a split and perhaps the best-known example would be Bitcoin and Bitcoin
cash. A smart contract is the core of what makes Ethereum so great and this is simply a digital
legal contract just like you would have in the physical world but in this case, it exists in is
verified by the network. Market cap is something we've talked about before here on the channel but
this simply means the total value of all of the coins available in circulation and market cap
is extremely important because at the end of the day the price of a coin is not nearly as relevant
as the market cap or total value of that entire cryptocurrency. And lastly we have a whale which
is simply someone who owns such a large portion of a particular currency that they're buying and
selling of that currency can drastically influence the price. Alright I know that was a lot to unpack
so if you have to go back and re-watch it a few times go for it but now that you have a general
understanding of the crypto terminology, what is the best place to buy and sell cryptocurrencies.
Well, I have entire videos dedicated to this but like I said when it comes to crypto exchanges you
have decentralized and centralized options. Now, this might be an unpopular opinion but for 90%
of crypto investors, centralized exchanges are definitely the way to go and they will be much
more simple and easy to use especially if you're just a casual crypto investor. By far the most
popular centralized crypto exchange would be Coinbase and this is a platform that I have
used myself in the past and while there are some platforms that have lower fees, the user
interface of Coinbase really makes up for that so in my opinion if you're just getting started
then Coinbase is definitely your best bet. So once you've selected your crypto exchange you
now need to decide what cryptos are you going to invest in and that is the million dollar question.
Now if anyone on the Internet says flat out that you should buy this specific altcoin that I would
immediately be skeptical of that since we have seen so many crypto scams. This really goes for
any kind of investing but especially when it comes to investing in cryptocurrencies, you have got to
do your own research and make those investment decisions on your own. Now in general the crypto
market is incredibly volatile when compared to something like the stock market so just
be prepared and aware of that but even within the crypto market there is a wide range of volatility
and risk. For example at this point investing in Bitcoin is likely significantly less risky than
putting all of your money into something like shiba inu or some other random altcoin. Most of
these altcoins are completely worthless and will ultimately go to 0 so picking out the next winner
is honestly a shot in the dark but that doesn't mean it's impossible. Now again I am not a crypto
channel but even if someone does claim to be a crypto expert I would still argue that you should
always be making those decisions on your own so in general, I will just say keep it simple and if
you're brand new to cryptocurrencies then there's no shame in getting started with the big names
like Bitcoin and ethereum and then slowly adding other cryptocurrencies from there. Remember that
Bitcoin is the largest cryptocurrency in terms of market cap so that's not likely going anywhere
and because of the smart contract capabilities of ethereum, there are so many crypto
projects better built upon the ethereum network so that isn't likely going anywhere either.
Recently we've also seen some crypto ETF's hit the market which I know personally I am a huge fan of
and while there are lots of different ones to pick from, I've personally made a crypto ETF
part of my regular investing portfolio within the Wealthfront platform and I have made a whole video
on Wealthfront's crypto options if you do want to check that out. But when it comes to specifically
making your first $1000 from cryptocurrencies, you really first need to decide what your crypto
strategy is going to be. Are you going to invest your money in a few different altcoins in hopes
that one of them takes off or are you going to dare I say play it safe or safer in this case and
invest in something like a Bitcoin and ethereum ETF? Again that is totally up to you but once
you have decided on a strategy that matches the risk tolerance that you personally have,
you can then get started with making your first $1000. If you were to invest in something like the
stock market, you would have to invest $10,000 in earn a 10% return in order to earn $1000,
and if you invested in a general S&P 500 index fund that had a decent year then earning that
$1000 could easily take a full year depending on market conditions. But the larger alure with
cryptocurrencies is the potential to earn those returns any much shorter period of time but just
as we've seen with regular stocks, that also comes with significantly more risk. For example about a
week before I'm currently recording this video, Bitcoin saw an increase of nearly 10% in just
five days. Zoom out to a full year and even with a significant pullback
it is still up roughly 200% and with an increase like that this means that in order to make the
same $1000 you would have only had to invest 1000 bucks since $1000 times a 200% increase is $2000.
But again Bitcoin is really just the tip of the iceberg in comparison to some much more volatile
cryptos. I mean we saw what happened with those coins this past year which increased like 20,000%
in a few short months and even though it has since plummeted from its all-time high it is still
up over 6000% on the year. Had you invested the same $1000 there and here 6000% return
would have turned your $1000 into $60,000. Again though picking those breakout winners is not that
easy and if it was everyone would be making insane money with these altcoins. So is it difficult to
make $1000 with cryptocurrencies, in general I would say no depending on your time horizon
meaning how long do you plan to invest for but all I will say is it is so important to
set realistic expectations and understand that for every story you read about someone becoming
a millionaire overnight, there were probably 100 other people who had a fear of missing out,
bought in at the top, and lost a ton of money as a result. I get the emotion trust me but you've
got to keep your head screwed on straight and again understand that if it was easy, everyone
would be making bank from this. So I know that we just scratched the surface of cryptocurrencies in
this video but I hope this gave you a crash course into the different terminology, some of the best
crypto's and crypto exchanges currently available, and how you can realistically earn your first
$1000 from cryptocurrencies by setting realistic expectations and understanding what it takes to
consistently investing cryptos for the long term. As always if you did get value out of this content
and you want to help support me the easiest way to do that is actually by checking out some of my
favorite financial tools down in the description below including one offer from the point cash back
debit card that will currently give you $100 when you sign up and make your first purchase so be
sure to check that out using the link down below. Be sure to hit the like button and subscribe to
the channel for more content like this in the future and of course, thank you so much
for your time I really do appreciate it so much take it easy and I'll see you in the next one!