Eyeing at the cryptocurrency market but unsure of how to start? Frankly, I thought I would be the last person to invest in crypto. If I can open an account and invest in cryptocurrency, you definitely can.
I was introduced to this beginner app – coinhako*.
█ How to sign up or download? █
► Sign up for a free account either via the website or via the mobile app (Apple iOS or Android Google Play).
► PinkOlifant invites you to enter my invitation/referral code: 8PArTAq when you sign up!
► I would strongly encourage you to download the mobile app version so that you can buy or sell at your fingertips, unless you are on your desktop/laptop all the time.
█ How to deposit SGD into the wallet? █
► The “wallet” you see in the app serves like “DBS PayLah!”. You transfer money from your bank to this wallet in order to complete transactions in this app.
► There are some rules to adhere to when you make a deposit to this “wallet”.
(a) Only make FAST transfers
NO PayNow, GIRO, SWIFT, over-the-counter or any other kind of transfer.
(b) Only transfer funds from a bank account under your registered identity.
Differ a little is fine, for example, your bank account is registered under “John Tan Ah Beng” and the name in your official document is “Tan Ah Beng” or “Tan Ah Beng John”.
(c) Do NOT include words such as bitcoin, cryptocurrency, coinhako, etc.
Cryptocurrencies operate independently and in a decentralised manner, so even people without a bank account can transfer money to another at low or no transaction cost 24/7. Of course, there are other benefits which I shall not dwell on. Just don’t use any word related to cryptocurrency in your transfer comments to avoid a bounced transaction for which you may be charged!
► When making a deposit, make sure the following tally:
Recipient’s name / Payee’s Name ➡ Beneficiary Name on your Coinhako App
Bank / Organisation / Institution ➡ Bank Name on your Coinhako App
Bank / Payee Account Number ➡ Account Number on your Coinhako App
Comments ➡ Deposit Code on your Coinhako App
► Once you have submitted the transfer, the amount should reflect in your “wallet” within minutes. If it doesn’t, submit a query ticket at support.coinhako.com. I have not submitted a ticket thus far.
█ How to buy or sell cryptocurrency? █
► PinkOlifant cannot tell you exactly which cryptocurrencies to buy…if I can I would have become a billionaire! However, there are some tricks or tips which can help us in forecasting the rise and fall of cryptocurrencies less blindly.
► Visit coinmarketcap.com to have a look at the “Market Cap”, “Circulating Supply”, “Price” and “Volume (24h)”. “Market Cap” is calculated by multiplying “Circulating Supply” with “Price”. A strong “Market Cap” shows that the coin is relatively mature and stable.
► Would recommend beginners to focus on the top 10 coins. When you are more familiar with how cryptocurrencies work, you can explore other coins with lower “Market Cap” and invest in the potential ones by researching the funds and projects they are doing.
► Buy low, sell high is definitely the rule of thumb. Look at the performance of the coin over 1Y (one year), 3M (three months), 1M (one month), 7D (seven days), 24H (twenty-four hours), 1H (one hour) before rushing into buying a coin. For beginners, we can take advantage of the “support”, the lowest points across the longer time frame (1Y, 3M and 1M), and buy the coins when they reach the “support” line. (Read this article to learn more about support and resistance.)
► This paragraph is solely a personal opinion.* The above graph is in USD, showing the price of Bitcoin over the period of 1Y (one year). There were two points where the prices fell close to 30.0k. So 30.0k is definitely a strong support in this case because it is quite unlikely that the price of Bitcoin will fall below that. Therefore, it is also quite safe to say that we can buy Bitcoin if it ever falls below 30.0k. Of course, whether it will ever fall below that level, it may, it may not, so we have to frequently update ourselves with crypto news as well as look at the directions in which the prices go.
► You can set price alerts for the coins you want to buy or sell. Ask the app to alert you when the price falls below a certain level or when the price increases to a certain level. A piece of advice would be not to always take nice whole numbers as the benchmark. Prices do not always fall nicely to a “20” or “250” before rising or falling.
► Once you have decided to buy a certain coin, press “buy” and complete the transaction within 15 seconds because the price will fluctuate here and now. If you are too slow in deciding, the price will change. (Besides coinhako wallet, you can also transact using GrabPay or credit/debit cards. Ensure you have linked the account or added the cards to prevent last-minute panic!)
► There will be a 1% platform fee for all buying and selling. Use promo code “COINGECKO” to reduce it to 0.8%! (Don’t forget to sign up using this invitation link: https://www.coinhako.com/affiliations/sign_up/8PArTAq or enter the referral code: 8PArTAq)
► Do note that the buying price will always be higher than the selling price, so it is definitely not recommended to sell at the buying price!
█ Final Words! █
► Set a limit: As a beginner, please do not dump your entire savings into this extremely volatile market. Set a limit to how much you want to invest, start small and learn as you invest.
► Strategise: Record down the transactions you have made, preferably using excel or spreadsheet, so you are aware of the average cost should you have bought a coin at various prices. Think about whether you want to hold the coin for the long term or just wish to earn a certain percentage of profit from it. You can also find out more about the Dollar-Cost Averaging (DCA) strategy.
► Diversify: As the saying goes, “don’t put all eggs in a basket”, we should look at a couple more coins and not just invest in one. Always do some research about the coin before purchasing. As there are no regulations yet, there are histories of FAKE coins where the creators just run with all the money invested into a coin.
Wishing you all the best in your crypto journey! – PinkOlifant
*PinkOlifant will not be responsible for the consequences of using the product(s) introduced on this blog, such as losses associated with the risks of investing.
PinkOlifant does not endorse individual vendors, products or services mentioned in this post.
Feel free to contact me @firstname.lastname@example.org or find me on Facebook @PinkOlifant 🙂