Intro to Crypto and Defi

Intro to Crypto and Defi

Store coins on a Ledger

If you keep your coins on an exchange, they’re not your coins. If you hold coins on a Ledger (a hardware wallet) for years, there’s no profits to report on your taxes until you sell (currently).

I would not buy crypto through a mutual fund or ETF. Look up the fees at your brokerage and compare returns with HODLing BTC or ETH.               

My Picks: BTC/ETH/LINK/SPELL

Gate.io is a brokerage with high gas fees (cost to buy coin.) Binance.us is much easier to use. However, SPELL, and many other minor coins, are not available on Binance as of 1/22/22. SPELL is available at Gate.io. You can loan your coin (defi) on Binance. This is a good way for a beginner to get into defi.

Misc.

  1. Google and read the whitepapers on cryptocurrencies you’re interested in. Whitepapers are similar to a prospectus. Whitepapers describe the purpose, goals, # of coin, and the hurdles the coin faces. The Satoshi Papers are Bitcoin’s whitepaper. (I enjoyed The Bitcoin Standard.)
  2. You can see when major holders of a coin buy and sell crypto at whalealert.io.
  3. Astronomical defi yields (10,000%, etc.) are very risky. There is a real possibility of total loss.
  4. “Bitcoin maxis” are more political and do not seek “alpha” like other traders will normally attempt to do. (We are still pretty early to cryptocurrencies, however.
  5. The Twitter account “BowTied Bull” offers a defi education substack you should find very helpful if you want to dive deep into defi.
  6. Lend stable coins for interest.
  7. Chainlink ($LINK) hopes to make stocks available on the Blockchain.

If you purchase or open accounts through the links to Ledger and Binance.us, I will receive a small commission. I receive a hefty percent if you open a Gate.io account. Please limit crypto purchases to what you can afford to lose.

You may find our Glossary page helpful.