A Beginner’s Guide Into Web3💊
When people discover I have a web3 crypto business, I get one of two very distinct reactions. They either think it's all a scam and I'm a fool for wasting my time and money 🤡 or they are very curious and ask "How can I learn more about this?" 🧐
So I'm making this step-by-step guide as a resource to share with people who are curious and want to explore crypto and web3 safely. You have already done your research, and you know the risk of investing in crypto is very high, but you believe in the future of this new technology and you are ready to dive into web3.
This guide will provide you with some basic safety tips, define need-to-know web3 terms, and give you a lay of the land. 📢This is not investment advice and I am not a financial advisor. I am a writer and you are responsible for yourself.
If you are brand new to crypto, or not ready for web3, but curious about cryptocurrency like Bitcoin, take a moment and read this article first as an Introduction to crypto called “First Year Down The Rabbit Hole.” 🐇 https://x.com/chri5j0y/status/1787205485508321756
💊 1. Step one may surprise you, but web3 is based on community. You need to set up an X account, add a PFP (profile picture) a banner picture, and write a short bio. This is so people know you are human and not a software program, aka robot or bot.🤖 Any picture is fine so have some fun with it.. you can come back and edit this later.
📢BE SAFE! Never follow links on X, and watch out for fake accounts, especially impersonators of large accounts.
Try to join community-led "X spaces" to engage with other people in a live voice chat..🧠 and learn about crypto, Runes, NFTs, art, and much more. When you find a space you like, follow the people in the space. Start posting daily, say GM ☕(good morning), and engage with the X community. Take time to write meaningful replies, and share your thoughts. This is how you build on X. 💪🏼
💊2. Second, you will need to join @discord unless you want to depend on Twitter for your announcements. If you plan to own any #NFTs (Non-Fungible-Tokens) you will need DC (shorthand for Discord). This app can take some time to get familiar with, so take your time and you will learn your way around soon. ⚠️
📢 Never click any links from Discord either without verifying they are authentic. There can even be a main account that gets hacked and announcements may contain unsafe links. You must use high security in web3 as you are your own bank, meaning you protect the keys to your assets.
Discord is also where much closer bonds are made and close friendships are formed in the holder chat rooms.🫂 I highly recommend exploring this space safely in a Good Vibes discord like my home away from home, the @okaybears general chat called "The Fountain" ⛲
📢I recommend setting up Google 2-Step Authenticator to protect your accounts for X and Discord, as well as other accounts you create later. Not doing so can result in hacked accounts so better to be safe than sorry. ⚠️
💊3. Your first investment is not crypto. First, buy a @Ledger or two from a certified dealer to store your crypto assets securely. (You can even find them at @BestBuy and pick them up the same day some place) Set up on Ledger Live, and write the Seed phrase on paper (yes, actual paper)📝and store them in 3 different places that are completely safe and secure.
⚠️ It is Very Important that you Never share your seed phrase with anyone and you never lose your seed phrase or your assets are gone forever. 💀
Don't let this step intimidate you as it has some of my friends. It is not as hard as it sounds I promise, and you feel great having control of your assets. Reach out if you have questions. 💯
💊 4. Choose a CEX (centralized exchange) like @Coinbase or @Krakenfx. It is often easy to send money to the exchange but there can be more steps to cash out. Make sure you can meet all the requirements before you get too comfortable, and even consider having a backup.
CEXs are necessary to get cash from your bank to your ledger and back, but this guide is primarily for Web3 investors who prefer to trade on DEXs (decentralized exchanges) like @JupiterExchange and decentralized marketplaces like @Magiceden. Ultimately you will need to decide what is right for you.
For a great explanation on the differences between DEXs and CEXs read this thread by @OnchainLabsX https://twitter.com/OnchainLabsX/status/1785811464621559873
💊 5. You have completed registration and you are ready to fund your accounts. What to buy and how much of each is a decision every person needs to make for themselves. As you spend time in the web3 space, you will develop a sense of what to buy, and growing with experience and conviction will be your best guide.
I have tried many strategies over the years with huge success 📈 and massive losses. 📉 It is impossible to talk about all of the methods and techniques you can use, and honestly, you have to decide what makes sense for you.
I have had the best results using a simple DCA method: ⬇️
In 2023, as an experiment, I donated $1000 to a nonprofit I oversee, using the DCA method. Over the year, I gave 10 donations of $100 a month. Today, these donations are valued at over $7K! 🫡
When I invest money into my crypto business or add capital to one of my kids' portfolios, these are generally the ratios I use ⬇️
📢 REMEMBER: This is a Web3 guide, and these assets will be to buy other assets we will explore next. As a Web2 Only investor, I did best DCA'ing top 10 coins by MC (Market Cap) through CEXs.
💊 6. In order to use all of the innovative new web3 dApps (decentralized applications) you will need to set up a few web3 wallets. Add the @XverseApp Chrome Extension to your Google Chrome web browser to hold and use your $BTC assets (including #Ordinals and #Runes) and the @Phantom Chrome Extension for your $SOL and $ETH assets (including utility tokens, #memecoins and #NFTs)
To learn more about Web3 wallets check out another thread by @OnchainLabs X and make sure to like and follow their page. https://twitter.com/OnchainLabsX/status/1782849575855730819
✅ This is a good time to register all your wallet addresses with your CEX as there may be a 2-day verification process before you can send funds.
💊7. After you have your web3 wallets made, send a very small amount of crypto to each address as a test to verify everything is set up correctly. Even if the fees to send are a little high, never send large amounts of crypto without first verifying the address.
⚠️ Remember to only send crypto to the correct blockchain. Bitcoin must go to Bitcoin addresses only. Solana can only be sent to Solana addresses. You rarely retrieve funds sent to the wrong chain and/or the wrong wallet address. Be very careful.
Once you confirm each address is working properly and you received the small amount in your wallet, transfer the rest of your funds to your ledger wallets.
It is a good idea to keep a little liquidity (USD in your crypto account ready to spend) on hand in case a sudden price drop happens, you will be ready to buy while most will not be able to transfer funds and get the deal.💸
💊 8. Okay now your wallets are topped off and you are ready to become a true Degen (short for degenerate investor). Time to choose a PFP (profile picture) and buy an NFT. Your online profile pic is your digital identity, but also your access to a community. This is an important purchase and one you should take seriously.
Go to @magiceden and look at some top collections to see what is out there and what you could imagine wearing as a pfp. At first, you will have no idea what to buy and what collections and communities you vibe with. This is completely normal. We all go through it. One thing I can say is that this is less about the picture and more about what it represents in web3.
I would check out inspect.xyz and see what communities are most active and go read what some of the top community members are saying on X.. see if you like what you hear and if you relate. Follow a few of them and see if you vibe with them.💫 Your Vibe Attracts Your Tribe. 🫱🏽🫲🏾
Here are a few pfp ideas with active communities in no particular order.. you can join for less than $500 just to get started: @okaybears @okay_dogs @Boredapesolclub @Cetsfk @sagamonkes. ⚠️Don't overdo it here, I spent 75 sol on my pfp last summer and it is now worth 4 sol and I don't even use it.
💊9. Now you have a pfp, it is time to double down on building your web3 community. Think of this like work you need to put in to learn the way this digital world functions and devote at least an hour a day, as many times a week as you can afford to making connections with people in web3.
For some of you, this can take some time to adjust and realize: that this is work and not just socializing. I know I was always told that was a waste of time and I needed to “get to work!” (physically speaking). But I believe this is wrong oppressive thinking parroted by angry people who dislike their work and feel trapped in a job they hate. I know firsthand because this was me.
The crazy thing is, that I have learned making strong connections with high-quality people in web3 is probably the best thing you can do to grow your portfolio.
📢 Avoid paid influencers with huge followings telling you what to buy. By the time those accounts are talking about a project, the opportunity has probably already passed, and they are unloading their bags (meaning they are selling their assets and tricking you into buying.) You become what is called “Exit Liquidity” for the early investors.
Instead, try to build individual relationships with people who keep showing up on your TL (short for timeline: refers to your Twitter feed). Start to connect with people on Discord and find them on X. When you cross platforms this way, the bond becomes much stronger because now you can talk 1/1 in DMs (direct messages) GCs (group chats), and VCs (group voice chats).
The more you overlap and engage with the same people, the stronger the connection becomes. These connections become roots and your community will continue to grow organically, eventually developing into a priceless resource.
💊 10. Become a student of everything in blockchain! Web3 is interesting because most of the community works together and helps each other, but we all understand we are responsible for our own decisions. You will hear this over and over: DYOR/NFA (Do Your Own Research/Not Financial Advice)particularly when people are sharing information they think is exciting and has the potential to become profitable.
The truth is, the only way to be successful in web3 is to study like crazy. Degens do more research than any kind of person I know. We are rolling out brand new tech all the time and if you do not commit to doing research, you will get left behind and probably stay poor because you won't have a clue what to invest in.
📢It is also true some people are only here to lie, cheat, and steal. If it sounds too good to be true, it is a scam. Just like IRL (In Real Life) if not even worse.
💊 11. Study Blockchain and Crypto. I wrote an article over 5 years ago about my first year in crypto and it is interesting how much of this still applies. I have several links here to begin to study blockchain and learn about crypto, so if you are brand new to the space, it may be good to read: https://twitter.com/chri5j0y/status/1787205485508321756
This article provides information and links to begin to learn how to chart, maintain a portfolio, prepare for taxes, and follow crypto news, as well as a few good books everyone curious about crypto needs to read.
💊12. Study NFTs and Ordinals (NFTs on Bitcoin). It can be very tempting to just start buying up a bunch of NFTs and Ordinals when you get started but I encourage you to take some time and study the asset before you buy. It is important to understand the different kinds of NFTs, (pfp, utility, art, etc.) what advantages different blockchains offer (Bitcoin vs Ethereum vs Solana), and how they function in various market patterns.
I made the mistake of buying too many NFTs not understanding that they were far more illiquid assets (like homes, autos, and collectibles) than I needed for my financial goals. I need to have 50-75% of my portfolio in liquid assets, especially during a bull market (rising markets with higher highs and higher lows).
I plan to devote an entire article to NFTs and Ordinals soon and share my experiences good and bad with trading this asset class. For now, tread cautiously with NFTs until you have been in Web3 a while and understand this rare asset a little better, and know what makes sense for you to invest in.
💊 13. Study Meme Coins and Runes. When I say meme coins, I am referring to tokens on the Solana Blockchain and Runes are just meme coins on the Bitcoin blockchain. Runes specifically, are the latest developments in crypto and provide an amazing opportunity to be at the genesis of such an amazing technological breakthrough. There is always the possibility that the technology is a complete failure and everyone who invested money will lose it all. This is a very high risk = high reward scenario, and not a good fit for everyone.
I wrote this article to give a little background on memes that may be helpful to read: https://twitter.com/chri5j0y/status/1785382229046415762
I plan to write a more in-depth article soon about what I have learned with Solana Meme coins and Runes to share more on this exciting way to make and lose money at the speed of light! In the meantime, be very careful trading these fast-moving, extremely volatile assets.
💊 14. Study Staking and DEFI (Decentralized Finance). I will wrap up with Defi because it may be the best place to have your assets while you learn your way around. When you are staking your assets, you are locking them into a liquidity pool to allow others to trade the assets and you receive an interest rate usually between 7-12%.
I currently use a platform called @Sanctumso to stake my Solana for about 9% APY (Annual Percentage Yield). Sanctum is cool because it uses Liquid Staking, so my assets are always able to withdraw immediately.
Other platforms I use, like @ledger which pays 8%, require 2 days to unlock the account before I can withdraw funds. Other great options are @kamino and @MarinadeFinance. DYOR and see what makes sense for you.
💊 15. Study Airdrop Farming. This is one of the coolest ways to earn crypto when you are getting started. Essentially, web3 companies are incentivizing new users by airdropping their tokens, in other words, sending tokens to your wallet for using their products. Some of the best airdrops have been by @bonk_inu, @jupiterexchange, and @wormhole.
Sometimes you are selected for amazing airdrops just because you hold an NFT. I made $6000 recently on an airdrop for NFTs I spent only $200 on for example, and did not even expect it! I will write an article soon devoted to this topic. For now, I would use @assetdash to track potential airdrops from their rewards page. This is also a great tool for portfolio management, and I use it in conjunction with @netrunnertax to maintain my books and prepare tax documents.
💊 16. Build Your Portfolio With Diversity. You need to really watch this step and always make sure you have your assets well balanced out. In other words, don't put all your eggs in one basket. This space is too high risk and uncertain, and a project you might be sure of today can disappear by tomorrow. Diversity is the only way to guarantee you don't get wiped out if the shit hits the fan.
You know the drill by now, it is up to you to decide what makes sense for your portfolio’s diversity. I can share what makes sense for me at the moment is pretty close to this ⬇️
💊 Okay, folks, that is all I have for today. I can write a book on each of these steps, as there is so much to say about these topics, but I hope this gives you an overview of what it takes to get started in web3.
Here is your Web3 Beginner's Guide TL;DR⬇️
Set up an X account
Join @discord
Buy a @Ledger
Sign up with a CEX
Fund your accounts
Set up web3 wallets
Fund your web3 wallets
Buy a NFT for your PFP
Build your web3 community
Become A Student of web3
Study Blockchain and Crypto
Study NFTs and Ordinals
Study Meme Coins and Runes
Study Staking and DEFI
Study Airdrop Farming
Build your Portfolio with Diversity
If you read this and enjoyed it, please like👍and follow🤝 if you resonate with anything I said please share your thoughts in the comments… I would love to know what you think. 🧠 and every repost is an absolute gift.🎁
Thank you for your love and support💚
Chris Joy @chri5j0y
©2024. Christopher Joy. All Rights Reserved.