A reader responded to the Hedgehog newsletter with an important question:
All this information is overwhelming. Can you help me manage things?
Our pleasure! Let's review the essential basics. The news that gets featured in the weekly email is exciting, and it's fun to keep up with the development of the industry, but most of that information isn't necessary on a day-to-day basis.
To start with, make sure your financial life is in order in general. Do you have an emergency fund? How about a traditional retirement account like a 401k or Roth IRA? Do you have any high-interest debt that isn't paid off yet? Bitcoin is awesome, but standard financial preparedness should be the highest priority for your money.
When you're sure that you're ready to get into crypto, go ahead and set up a wallet:
After that step, it gets a little more difficult. When I first joined Hedgehog, I wrote about the vigilant mindset that crypto investors need to have:
Treat cryptocurrency investing like the virtual equivalent of walking through a big crowded tourist area with a somewhat seedy reputation (think Times Square or nearly any part of Paris). Lots to see, plenty of exciting experiences — but it's crucial to know where your valuables are at all times, lest they depart on their own vacation, never to return.
The truth is, crypto isn't easy or simple. It's messy, the state of the art is always changing, the assets are volatile and risky, and you have to be careful to stay safe. Here's the good news: You don't need to understand everything right away. Keep reading, keep following your curiosity, and eventually the puzzle pieces will begin fitting together. There's no rush.
A few key puzzle pieces that you do need:
- Crypto Scams to Look Out For and How to Avoid Them
- How to Choose a Good Cryptocurrency: Top 6 Factors
- How to research a cryptocurrency: Your DYOR [Do Your Own Research] Checklist
- Crypto Portfolio Allocation: Your Complete Guide
- Dollar-Cost Averaging: How to Build Crypto Wealth on a Budget
- Should You Rebalance Your Crypto Portfolio? The Why & How
Once you've digested that, start diving into the more advanced knowledge:
- Why You Need a Crypto Hardware Wallet
- What are crypto gas fees & why are they so high?
- Staking Cryptocurrencies
- Crypto Domain Names
- Centralized vs decentralized exchanges: The Ultimate Guide
- What is crypto exchange liquidity and why should you care?
- What is Crypto Arbitrage & How To Profit From It?
- Best Execution Trading: The Cost-Shaving Strategy That'll Improve Your Trading Game
- What are crypto cards? 5 big reasons to get one
- Should You Get Yourself a Crypto Robo-Advisor? The 4 Best Options
Spoiler alert, we recommend Hedgehog 😉
Hopefully these lists will help you get oriented!