Last summer, I kept hearing about something called crypto. Everyone I spoke to talked about how it was the new currency and how I should invest in it and make tons of money, but no one could explain to me what it was or how to do it. Eventually, I decided not to bother, but then over the holidays my brother convinced me to give it a try and said he would help me get started. I thought I’d share my experience with crypto so that others don’t have to struggle the way I did with crypto!
The basics
So you’ve been hearing about this Bitcoin thing and you’re ready to get your piece of the pie. But where do you start? First, some basics: Satoshi Nakamoto invented Bitcoin as a digital asset and a payment system. The nodes of the network verify transactions using cryptography, storing the records in a public ledger called a blockchain. Bitcoin is unique in that it has only a finite supply: over 21 million people. That means no central bank can inflate away your money. It also means that the price of each bitcoin will rise as it becomes scarcer – and demand increases as more people want bitcoins for themselves or their organizations. Unlike traditional transactions, you don’t need someone’s account information to send them money. All you need is their bitcoin address – which is like an anonymous post-office box with a number assigned to it instead of street address – along with how much bitcoin you want to send them in the transaction, or they can generate one for themselves if they don’t have one already. You’ll be able to use bitcoin anonymously because each user has access only to their own personal address which could be used by anyone but only accessed by one person at any given time.
What are cryptocurrencies?
Cryptocurrencies are tokens (digitally or otherwise) that can only be sent or received with the consent of both parties and use cryptography to authenticate their transactions. These currencies operate on decentralized systems, which means they are not regulated by banks or governments. The first and most popular cryptocurrency in existence is bitcoin. Cryptocurrencies are traded via decentralized exchanges and can also be used to purchase goods and services. Currently, it is difficult to purchase anything using cryptocurrency, but as a growing number of vendors start accepting cryptocurrency, it will be easier for those who want to buy cryptocurrencies.
What do you need to get started?
You can buy and sell cryptocurrencies on exchanges, or you can store them in a digital wallet. There are many different types of wallets, including software wallets, hardware wallets, and paper wallets. Each type has its own pros and cons. You’ll also need to decide which currency you want to use. Some of the most popular options include Bitcoin, Ethereum, and Litecoin. Once you’ve decided on a cryptocurrency, it’s time to figure out how much money you’re going to invest. It might be tempting to invest all your savings right away- but it’s best not to risk too much at once. Buy an amount that will fit into your budget and work towards buying more as you become more comfortable with the process. One of the great things about crypto is that there are no limits on how much money you can make- so don’t worry if you start small!
Where can you trade or store them?
You can buy and sell cryptocurrencies on exchanges, or you can store them in a digital wallet. Cryptocurrencies are often traded on decentralized exchanges, which means there is no central authority overseeing the transactions. This can be good or bad depending on your perspective. Some people like the fact that there is no government control over their money, while others worry about the lack of regulation. You can also store cryptocurrencies offline in a paper wallet or on a USB drive. These wallets can either generate new public and private keys randomly (if they’re software wallets) or have one set of pre-generated keys (if they’re hardware wallets). You might want to get a hardware wallet if you plan to hold onto your coins for a long time. The issue with these devices is that they require an internet connection to work properly, so if the power goes out at home or the device gets stolen then you could lose all your coins!
Who should be paying attention to this?
Just about anyone with an internet connection and a computer or smart device can get involved in cryptocurrency. Whether you’re looking to invest or just want to learn more, there are plenty of resources available. Here’s a quick guide on how to get started.
– If you’ve never invested before, start by reading some beginner articles and watching tutorials on YouTube that cover some basic terminology and investing strategies.
– If you’re ready to start investing but don’t know where to begin, find out what other people are investing in by checking out what’s trending among influencers and making trades yourself.
– If it seems too complicated at first, take your time. There is no need to rush into anything! The market is still relatively new so most things will change frequently over the next few years until we have enough data points to establish patterns that work well for most people. For now though, these simple steps should get you off on the right foot as far as crypto is concerned!
My first cryptocurrency investment
If you’re interested in learning more about cryptocurrency, there are plenty of resources out there. Here are a few of my favorites – What is Bitcoin? (a general introduction to Bitcoin) Basic Mining Tutorials for Crypto-Currency (a step-by-step tutorial on how to mine Bitcoins) Building your first Ethereum mining rig (a list of instructions for building an Ethereum mining rig) A Beginner’s Guide to Buying and Selling Altcoins (basic guide on what altcoins are and how to buy them).
Crypto Resources
1. Binance- another popular cryptocurrency exchange with a focus on altcoins.
2. Cryptokitties- a game built on Ethereum that allows you to collect, breed and raise digital cats.
3. ShapeShift- an instant cryptocurrency exchange that allows you to convert between different cryptocurrencies without creating an account.
4. BitPay- a Bitcoin payment processor that allows businesses to accept Bitcoin payments and get paid in US dollars.
5. LocalBitcoins- a peer-to-peer Bitcoin marketplace where you can buy and sell Bitcoin with cash or trade it for other cryptocurrencies.
6. CoinMarketCap- a site where you can find all sorts of information about any given cryptocurrency including price, market cap, trading volume and much more.
7. Cryptocurrency exchanges don’t trade traditional stocks or currencies; instead, they are an exchange platform for cryptocurrencies. The price of a particular cryptocurrency is determined by availability and demand; if more people want it, then its price rises.