I just started to invest in cryptocurrency. This is what i learned

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Cryptocurrency has never appealed to me.

When the crypto-bro who makes me my coffee gets excited about how he turned $ 100 into $ 10,000 with his smart trades, my response is a resounding “meh”.

As a woman in my early forties, I’m about as far removed from the typical demographic of crypto enthusiasts as I can get, and frankly my to-do list already seems pretty comprehensive without adding “learn more about tech.” emerging financial institutions that could conquer the world ‘at this.

There are several reasons why I’m just not into crypto

I’m understandably skeptical, so anything billed as the next big thing, or an instant multi-million dollar, tends to cause a very raised eyebrow.

And in the same way that I don’t bet on the Melbourne Cup because I hate spending money on things I don’t know enough about, putting money into crypto has always been more of a game to me than it is. ‘an investment.

But the interest and number of people investing in cryptocurrency has grown exponentially over the past year. The ATO reports that around 600,000 Australians have invested in cryptocurrencies in recent years (although other estimates are much higher).

According to a survey in June by market comparison site Finder (whose founders also run a crypto exchange), a third of Gen Z now owns digital currencies, twice as many as in January.

Cryptocurrency is clearly here for the long haul, and as I talk about it frequently in my job as ABC News Breakfast financial presenter, I need to learn more. And the best way I know of to do that is to put some skin in the game.

I’m going to spend $ 100 of my hard earned money on a three month experiment with cryptocurrency and see where I end up.

Why I won’t buy Bitcoin

I don’t know if Bitcoin is going to rule the world, and I don’t want to bet that people are going to be willing to pay more for bitcoin in the future than they are today.

Read moreWhere to start?

First problem: I don’t know where to start.

According to that same Finder survey, this was the biggest hurdle for 22% of those interested in investing in crypto.

I don’t want to go to one of the YouTube get-rich-quick “experts” (of which there are around a million, many of which are sponsored by smaller or alternative coins), so I turn to the professor instead. Ellie Rennie from RMIT in Melbourne. She is a crypto researcher at their Blockchain Innovation Hub, and as an early-stage investor she has a lot of experience.

I like his first tip: “It’s very easy to lose a whole bunch of money.

“Never spend more than you can afford to lose.”

Professor Ellie Rennier recommends setting up a digital wallet when exchanging larger amounts of money to avoid potential hacks. (

Provided: Professor Ellie Rennie.

)

Ms. Rennie helps me take the first step: create an account on a trading platform. She uses one based in Australia, but there are literally hundreds to choose from.

You can go to a comparison site and see which one works best for you. They all offer different fees for transactions, different cryptocurrencies, and different options for putting your own money, like POLi, PayID, and wire transfer.

I have to enter personal information and my driver’s license for identification, and this is followed by a call a day later from the trading platform to verify my identity before creating my account, which reassures me.

Bitcoin scam leaves a bitter taste

The brother of a man who was scammed over $ 400,000 has warned people to be more aware of fake bitcoin traders.

Read moreDo I need a digital wallet?

Ms Rennie recommends setting up a digital wallet when trading larger amounts of money, as one of the big risks with cryptocurrency is that someone hacks your trading platform and steals your coin.

“Security is the most important thing when it comes to cryptocurrency. You don’t want to keep your cryptocurrency on an exchange,” she says.

Digital wallets are secure places where you can put your cryptocurrency, much like you would put money in a physical wallet.

Having said that, Ms. Rennie and I agree that because I only trade small amounts, I don’t need to worry about it yet, but as soon as you get amounts that you would be sad to lose, it’s a critical step.

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Now on to the exciting part of my first purchase! What to buy?

Bitcoin is obviously the largest and most well-known coin, and there are literally thousands more, but they come with a disclaimer.

“They all have different levels of security, and we also don’t know how long they’ll be staying,” Ms. Rennie said.

“You have to be a little careful, especially when you go into things that seem cheap on these platforms. They can go away.”

In the end, we go for the second biggest coin, Ethereum, for the stability of its platform. I also like the idea because it is changing how it works: it will soon reduce its power consumption by 99.5%, according to a blog post from the project.

Bitcoin has a carbon footprint known as the equivalent of Portugal, so the idea of ​​not contributing to that is appealing.

Ethereum is trading at $ 2,804.15, so after transferring my $ 100 to the trading platform, for a small fee, I am now the proud owner of about 1 / 28th of Ether (the blockchain coin Ethereum).

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Read moreAm I already rich?

That was a month ago, and I’d like to tell you that since then I’ve learned all about cryptocurrency and made a pretty dime in the process.

This is not what happened.

Since then, I’ve been on leave with my family, had some great stories, bought a dog, and didn’t do anything with my room. And Ethereum fell to $ 2,578.67.

It turns out that buying crypto isn’t enough to really invest in it, if you know what I mean.

My new resolution is therefore to spend at least an hour a week learning more and managing my investment more actively.

Ms. Rennie stresses that research is the key to a successful experience with the digital coin.

She recommends the newsletters of Messai, EthHub and Spencer Noon, and the Coindesk, The Defiant and Decrypt websites.

There are also many crypto podcasts. Ellie’s favorites are Laura Shin’s Unchained and Bankless.

These are just his choices, and as with any financial decision, you should do your own research and always consider your own circumstances before making an investment.

To be honest, it seems a bit overwhelming, but also necessary if I really want to understand cryptocurrency.

This article contains general information only. You should consider obtaining independent professional advice based on your particular situation.

Madeleine Morris is the financial presenter for ABC News Breakfast.

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