Crypto Investing Tutorials

How To Invest In Crypto Onchain

Our goal is to provide readers with in-depth crypto tutorials, walking them through every step of the process, where we can demonstrate a hands-on experience where learning about crypto is simple and fun through investing onchain. Learn about crypto and investing onchain by doing. Check out the following guides:

Investing In Crypto

Investing in crypto involves putting your time and/or money towards the future of the industry. While buying crypto assets is the most direct way to invest, there are also ways to get exposure through the stock market or by investing in the infrastructure that powers crypto.

Why Invest In Crypto?

Many people feel that crypto has the ability to revolutionize our daily lives by removing intermediaries and creating a peer-to-peer financial system.

Other people may see assets like Bitcoin as a store of value, and something that could replace Gold in an increasingly digital age.

Whatever your view may be, here is why investors are excited about this space:

• Diversification: It is always important to diversify your portfolio. Crypto assets have been uncorrelated to almost every asset class in 2023 and could offer a new wave of alternative investments to one’s portfolio.
• Decentralization: Today’s world depends on centralized intermediaries. We are required to ask permission for nearly every transaction. Crypto has the ability to put people back in charge of their finances, as well as their daily lives.
• Potential Gains: The returns crypto assets have brought certain investors in the past can not be ignored. If the industry continues to shape into the future of finance, it is hard to measure what the potential could be.

Earning Yield: Have you seen what banks are paying on savings? Crypto offers several ways to earn a yield, such as lending or staking. And the recent trend of protocols returning profit to token holders is just beginning.

Considerations

In addition to being riskier than most stocks and other asset classes, investing in crypto is unique for several reasons:

• While stocks grant ownership to a share of the underlying company, token holders are not guaranteed the same benefits.
• Tokens are valued in much different ways than stocks, and revenue being passed through to token holders is a relatively new concept.
• Tokens come with additional risks such as exploits, smart contract risk and unclear regulation.
• Instead of simply buying and holding, you can do a lot more with a token once you own it such as providing liquidity or staking.

Crypto Tutorials With Milk Road

Milk Road is the one-stop shop for tutorials about getting started in onchain investing with crypto. And since we start with the basics of creating and funding a wallet, readers of any knowledge level can follow along.

For those who are more experienced, we also dive in head first into interesting and emerging protocols. But don’t worry, everything we do is broken down for readers step-by-step.

On top of this, we explain our reasoning for everything we do. We also educate readers on why they might want to follow in our footsteps, as well as things on the blockchain that should be avoided.

What We’ve Done So Far

We’ve accomplished a lot in our first month, which you can read all about here (need last to be published).

In short, we’ve:

• Created our MetaMask wallet, linked it with our Trezor cold storage device and funded it with $10,000.
• Purchased Ether and staked it with Lido Finance, while leaving some of our funds in stablecoins to utilize down the road.
• Took some of our staked Ether to Pendle Finance to trade yield and restaked another portion of it with EigenLayer.
• Bridged some of our ETH to three layer-2 blockchains: Arbitrum, Optimism and Base.
• Taught cryptocurrency trading for beginners by trying out perpetual futures exchanges.

And we’re still only in the first inning of our tutorials on crypto. Follow our progress as we continue to try new things and attempt to grow our portfolio. We've also walked through how to use MetaMask Portfolio and how it differs from their traditional service offerings.

How To Invest In Crypto

We've been putting together a lot of guides for readers to learn about investing in crypto. We cover everything from cryptocurrency trading for beginners to specific guides to cryptocurrencies or protocols.

Readers can follow along and learn from our journey! And there's no shortage of other resources we would recommend in the form of other newsletters or Youtube channels. Crypto for beginners just got a lot more fun with Milk Road 🥛

What Does Investing In Crypto Mean?

Investing in crypto means placing your financial bet on the future of crypto — or specific projects or companies. Buying crypto is the most direct way to invest, but some ways to invest in crypto don’t involve owning any cryptocurrencies at all. For example, many see MicroStrategy stock as a crypto play because the software company holds over 150,000 Bitcoin. Yowsa.

• Crypto stocks: You can gain exposure to the crypto market through crypto stocks like Microstrategy (MSTR), Coinbase (COIN), or even Bitcoin miner stocks, like RIOT.
• Crypto ETFs: There are already several crypto exchange-traded funds (ETFs) that act like index funds for crypto companies. ETFs often (but not always) offer more diversification compared to buying individual stocks.
• Bitcoin and Ethereum ETFs: Several asset-specific ETFs loosely track the movements of top assets, like ETH and Bitcoin. Current options center on futures market trading, but big names like BlackRock and Fidelity have filed for approval for Bitcoin ETFs that will hold BTC rather than futures contracts.
• Crypto coins and tokens: Of course, the most direct way to invest in crypto is to buy cryptocurrencies like BTC or ETH – or any of the thousands of other coins and tokens.

Stocks and crypto ETFs often provide ancillary exposure, meaning that their price may be affected by a number of other factors that aren’t seen in the crypto market itself. The upside is that you can buy and sell them easily through a stock brokerage account.

Crypto coins and tokens take a bit more work. You’ll need to learn the ropes for crypto exchanges and crypto wallets, and how to do your own crypto research.

The upside? The industry is still very young, with sky-high possibilities if the conditions are right.