12 Must-Know Tips Before Opening a Brokerage Account for Stocks or Crypto
- Silivere Bakomeza
- Jun 29, 2022
- 4 min read
Updated: May 7
Have you ever heard of the investor who turned $17.53 into $5.8 million in just 197 days by betting on Shiba Inu? These stories, while rare, fuel a wave of excitement and FOMO (fear of missing out) among new investors chasing the next big crypto or stock. But before diving in, it’s important to take a step back.
At Bako Invest, we believe in long-term wealth-building, not hype. So before you open a brokerage account for stocks or crypto, make sure you understand these 12 key tips.
1. Know the Difference: Broker vs. Exchange
Crypto exchanges (like Coinbase, Crypto.com, and Binance) let users trade coins directly or convert them into cash. For example, you can swap Dogecoin for Bitcoin or sell BTC for USD. These platforms are decentralized and operate 24/7.
Stockbrokers (like Robinhood, Webull, and TD Ameritrade) act as intermediaries. When you buy a stock or crypto from a broker, you’re purchasing from their inventory, not directly from another user.
Each has unique features and fee structures, so explore your options carefully. At Bako Invest, we use multiple platforms like Webull, Robinhood, Acorns, Coinbase, and Crypto.com to cover all our needs.
2. Platform Features and Fees Matter
No two platforms are the same. Some offer better trading tools, others provide access to a broader range of assets. For example:
Crypto.com: Charges ~2.99% for trades.
Coinbase: Varies by region and method.
Robinhood & Webull: Commission-free for listed stocks and cryptocurrencies.
Tip: Many crypto exchanges don’t list every coin. Having 2+ accounts ensures access and acts as a backup if one platform is compromised.
3. You Might Not Know What Kind of Investor You Are (Yet)
Are you a:
Day Trader: Buys and sells within a single day. Requires $25,000+ to avoid restrictions in the stock market.
Swing Trader: Holds assets for days or weeks.
Long-Term Investor: Buys and holds for years.
Crypto Speculator: Trades volatile altcoins 24/7.
Your strategy will evolve. Start small and observe your behavior before going all-in.
4. The Rules Are Different for Crypto Day Trading
Crypto markets never sleep. You can day trade Bitcoin, Ethereum, or Pepe 24/7 with as little as $1. But be warned: crypto is highly volatile and lacks the historical data of traditional stocks. A working strategy is essential before scaling up.
5. There Are Multiple Ways to Make Money in Both Markets
In the stock market, you can earn through:
Capital gains
Dividends
Call & Put Options
In crypto, income can come from:
Capital gains
Staking (like earning yield on Cardano)
Shorting (betting against price movements)
Each carries risk. Options and shorting can be powerful but dangerous without deep research.
6. You Don’t Need Much to Get Started
You can start investing with just $1. Of course, your gains will scale with your investment size, but the important thing is to begin.
7. These Markets Are High Risk
Both stock and crypto markets can shift rapidly. While you can make a lot of money fast, you can also lose it just as quickly. Always research first and never invest money you’ll need in the short term.
8. The Rewards Can Be Life-Changing
I once turned a $1,832 Dogecoin investment into $151,000 in just a few months. Was it skill? Not really—it was timing. You can’t predict the market, but if you stick with it and stay disciplined, the rewards can be real.
9. Emotional Discipline Is Required
Market downturns will test your patience. Remember: you don’t lose until you sell. The S&P 500 dropping 20% doesn’t mean it’s over—it might be your best opportunity to buy.
10. Only Invest What You Can Afford to Lose
Never put rent or emergency funds into stocks or crypto. Only invest what you’re okay with leaving untouched for years. This protects both your portfolio and your mental health.
11. This Could Help You Quit Your Job (Eventually)
Investing isn’t just about passive income—it’s about freedom. If you’re serious, it could be your path to early retirement or quitting a job you don’t love. Platforms like Acorns can help you start automatically based on your goals and risk tolerance.
12. You’ll Learn How Money Really Works
Before I found the markets, I thought earning $26/hour was the ceiling. But after diving into investing, I realized I could make more in a month than I used to in a year. That shift changed my life—and it can change yours too.
Final Thoughts
Don’t let headlines fool you—investing isn’t about hype or gambling. It’s about understanding risk, learning strategy, and building wealth one smart move at a time.
If you’re just getting started, take this post seriously. Bookmark it. Come back to it. And most importantly—start small, stay consistent, and think long-term.
Start Your Investing Journey
Ready to open your first brokerage or crypto account? Here are platforms we use and trust at BakoInvest:
Webull – Trade stocks and crypto with no commission.
Robinhood – Easy to use, beginner-friendly, and supports options.
Acorns – Auto-investing for busy people.
Coinbase – Trusted crypto exchange, great for beginners.
Crypto.com – Flexible platform with staking options and a debit card.
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