How To Get Started In Cryptocurrency: A Beginners Guide

I had no idea what cryptocurrency was, but now I’m hooked. It’s like the Wild West out there. The internet is full of conflicting information on how to get started, with opinions ranging from ‘cryptocurrency is a scam’ to ‘buy it now because it’s going to be worth a million dollars someday.’ I wanted to know the truth. I wanted to know how to value bitcoin and other cryptocurrencies. And I wanted to know how to invest my money wisely. So I talked to a friend who is a financial advisor and got some expert advice. I’ll break it down for you below.

Introduction

Do you have a wallet and know how to use it? Every cryptocurrency needs an exchange. The ones I like are Bittrex, GDAX, and Kraken. Bittrex is best known for bitcoin trading and GDAX for bitcoin and ether trading. You should avoid trying to trade ether with bitcoin or vice versa, since the volatility of these cryptocurrencies makes it hard to predict prices. On Kraken, if you want to trade your money directly, you’ll be able to set up a trading account with a name and password, deposit the amount you want to trade, and then send funds to an exchange. Step One: Buy Your Wallet You can buy bitcoin with US dollars on the websites Coinbase and Kraken. These are online wallets. The wallet connects to the internet, and gives you your own private key.

What is Cryptocurrency?

I know, you’re confused too. What exactly is cryptocurrency? “Cryptocurrency is a form of digital currency created and/or used to buy goods and services,” explains financial advisor Tony Santoro. “Cryptocurrency uses a decentralized network of computers that work to keep the records of its transactions secure. Cryptocurrency doesn’t use a central governing authority, like a bank or other financial institution, to verify transactions or balance a currency.” Just like banks, you can trade in cryptocurrency, but you’re dealing with blockchain technology — a shared database of transactions. The “blockchain is also the ‘money’ in the cryptocurrency world,” says Santoro.

How to get started with cryptocurrency

Cryptocurrency’s value is determined by how many people want it and how many people want to buy it. Bitcoin, the king of the cryptocurrencies, is valued at $7,000. Before I started diving in, I spent most of my money on non-cryptocurrencies like bitcoin. And then I went to Cointelegraph, and that changed everything. It started with their article, “Bitcoin: I Can’t Believe It’s Still Cheap.” I asked myself, “How much bitcoin do I need? How much do I have? What do I need it for?” I realized, “I’m in no hurry to sell it if it is not necessary.” It’s not a typical investment. People invest in stocks for retirement and vacation plans. Cryptocurrencies are not like any of those.

The cryptocurrency market

Basically, you can think of cryptocurrencies as a market of people who want to buy a certain type of cryptocurrency (like bitcoin). Once a cryptocurrency starts to gain traction (meaning people start buying it) its value goes up. While the value of a coin is fairly straightforward, it’s the market behind it that you need to know about. So, here’s a primer on the cryptocurrency market: Bitcoin is the most well-known cryptocurrency and the most well-known store of value. Since its creation in 2009, bitcoin has gained popularity with the big players in the finance world. The reason is simple. Bitcoin is secure. Bitcoin is secure because it’s stored in your computer. A hacker can’t simply access your bitcoin wallet if your computer is already encrypted.

How to invest in cryptocurrency

To get started investing, you don’t need a lot of money. Even an initial investment of $10 to $50 is enough to learn about the world of cryptocurrencies and decide whether or not they are right for you. A good place to start is CoinDesk.com, a site that provides all the necessary data about the cryptocurrencies currently in circulation. This includes a list of all the different cryptocurrencies and how much they’ve risen or fallen over the past 30 days. You can also download CoinDesk’s free ‘Digital Currency Dashboard,’ which gives you an overall picture of the digital currency world. There are about 1,600 digital currencies currently in circulation. You can use an easy-to-use coinocumming calculator to get an idea of what your money is really worth. 

Conclusion

Cryptocurrency is becoming more mainstream, but you still need to be aware that it’s volatile. In fact, many people have lost a lot of money investing in cryptocurrency. But if you’re willing to learn and put in the work, you can potentially reap big profits.

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