How to Start with Cryptocurrency: A Beginners Guide

Cryptocurrencies have captured the imagination of the financial world and the general public alike. 

People have asked ‘What is cryptocurrency?’ and ‘Is it a good investment?’. The quick answer is ‘It is digital currency, based on cryptography, that is secure and can be transferred anonymously’. The more in-depth explanation is below.

What is cryptocurrency?

Simply put, it is the online version of currency. Invented by an unknown person or group, called Satoshi Nakamoto, in 2008, it was originally designed as a currency used exclusively by those who wish to keep their financial transactions private.

How to Start with Cryptocurrency?

There are many ways to get started with cryptocurrency. The easiest way is to simply buy some. You can purchase online using a credit card or use cash to buy bitcoin at a local store. Once you have your coins, you can learn how to store them, trade them, and invest in them. The learning path for how to get started with cryptocurrency is below. If you need help, feel free to message the /r/Cryptocurrency moderators.

The Differences Between Investing in Cryptocurrency and Investing in the Stock Market

One of the main reasons people get confused about investing in cryptocurrency is because it shares similarities to stocks and other investments. You can think of it as a share in a company that owns or operates using blockchain technology.

There are, however, some key differences between investing in stocks and investing in cryptocurrency. For one, stocks can be sold at any time. Compared to that, cryptocurrency can only be traded at certain times—when a person desires to sell their coins, they have to find someone willing to buy them.

Stocks also have a transparent owner, which is easy to track. Every stock transaction is recorded in a public ledger. Every share owned by any investor can be traced back to them.

Cryptocurrency, on the other hand, is largely kept private. The identities of the owners are mostly kept secret. There is no public ledger that shows who owns what.

How to Store Cryptocurrency?

Many people ask how they should store cryptocurrency. There are a few options:

Online: Using a web wallet—such as Blockchain, Coinbase, or Xapo—is the easiest method. You can store your coins online, away from the hands of others. However, this does not protect your coins from being hacked.

Using a web wallet—such as Blockchain, Coinbase, or Xapo—is the easiest method. You can store your coins online, away from the hands of others. However, this does not protect your coins from being hacked. Offline: An offline wallet is a better option. It’s a file stored on a device that is not connected to the internet. It’s an excellent option for long-term storage.

An offline wallet is a better option. It’s a file stored on a device that is not connected to the internet. It’s an excellent option for long-term storage. Hardware: A hardware wallet is another way to store your coins. It’s basically a small piece of hardware that you keep stored away from prying eyes.

Final Words: Should you invest in cryptocurrency?

There is no one-fits-all answer to this question. It largely depends on your goals, your risk appetite, and your financial situation. If you’re looking to make a quick buck, then probably not. You are much better off putting your money into a high-yield savings account or simply investing it yourself.

If you’re looking to become financially free in your lifetime, then yes. It’s a great way to become financially secure. It’s also one of the best investments in years. The only way to know for sure is to do some research and then invest into a few different coins that interest you. If you follow this advice, you should have no trouble getting started with cryptocurrency.