Cryptocurrency: where do you even start? While many assumed Bitcoin, Ethereum, and other currencies to be something of a flash in the pan a few years ago, it’s clear that they are not only here to stay, but that they are also making many people a lot of money.
Therefore, while an ultimate guide to crypto might be millions of pages long, we thought we’d put together something of a beginner’s guide to help you get to grips with crypto in 2021. Whether you’ve been hearing about the highs and lows of Bitcoin and Dogecoin in recent times, or just want to know what digital wallets are about, you can use this quick overview as a launching pad.
It’s a good idea to go scouting out further reviews and guides so you can fine-tune your trading and experience. For example, why not take a look at the True Potential Investor review over at AskTraders? AskTraders is a fantastic website full of useful resources to help you get into crypto.
For now, let’s take a look at how you can easily get started in digital money.
What is cryptocurrency?
Cryptocurrency, or crypto for short, is digital money. The currency is generated through cryptographical mining and processing. For the average user, that means you are essentially crunching digits to find rare commodities.
The mining process may seem complex on the surface, but actively buying and trading in crypto is much simpler. Crypto runs on a digital ledger known as Blockchain. This is a popular source of currency mining because it has no central control.
Decentralization means that trading in crypto can occur without the need for much red tape. What’s more, it means that anyone, anywhere, can trade instantly without the need to wait for foreign processing. They can also do so without hefty trade fees, etc.
Is crypto private?
For the most part, yes, crypto such as Bitcoin, or BTC, is so popular because it’s decentralized. That means there’s no paper trail when it comes to who’s bought what, or where money might be going. Some territories such as the UK remain hesitant over the true legality of crypto, however, there are very few laws forbidding these transactions.
Is crypto secure?
One of the biggest draws for people investing in crypto is, of course, security. While dealing in digital money might not seem too safe on the surface, Blockchain is intrinsically secure by design.
Effectively, you cannot write over a contract that initiates or takes place on the digital ledger. This means that transactions are clear and absolute. This is also a key reason why so many people use Blockchain for contracting and for registering sensitive data elsewhere.
Banks, however, are wary of crypto because it’s decentralized. They do not have control over the resources, and as such, don’t know where the money is coming from or going to.
Where can I use crypto?
You’re able to use cryptocurrency in a growing number of places. One of the most interesting cases is Down Under. Australia is extremely open to Bitcoin in particular, and you can even use the digital currency at physical grocery stores. There are also football clubs and sports teams across the world that accept crypto payments. This is partly because it encourages investment from fans all over the globe!
You may have seen that Elon Musk, owner of Tesla, has spoken at length about Dogecoin potentially being used for journeys via his SpaceX intergalactic travel. It’s a brave proposition, and Musk remains one of the biggest forces in crypto right now. He helped to pave the way, arguably, by helping to set up the hugely popular PayPal e-wallet.
Where do I get started?
That’s the question! To start, you should ideally look for crypto wallets online. These are programs that you can install on a PC or Mac with ease, allowing you to effectively store the code you buy so that you can trade it in at a later date.
Once you have a wallet, you need to find an exchange – this is where you will be able to start investing real cash in BTC and more. There are plenty of exchanges out there so be sure to dig around and do some research.
Crypto can be very rewarding, but as with all trading, remember that there are big risks involved. Bitcoin, for example, can be very volatile.
So – be sure to take up some wider reading, find a wallet that suits your needs, and evaluate how much you can safely put aside for crypto!
