A lot of people who are new to cryptocurrencies are often scrolling through many different forums and are asking the question “how do you get started with cryptocurrencies?” It is a question that gets thrown around a lot and I thought I would finally put an end and answer the question. In order to get started with cryptocurrencies, it is wise to know exactly what they are as this will give you a better understanding and know what it is you’re investing in.
What Is Cryptocurrency?
A cryptocurrency is a digital currency that uses cryptography as security, and this makes cryptocurrencies extremely difficult to counterfeit. This is one of many defining features of a cryptocurrency that make them very unique as well as the fact that they aren’t issued by any central authority, which means that it is protected against government interference or manipulation.
Cryptocurrencies can be used for a variety of things such as paying for goods or services, or they can be used as trading tokens to trade between people online. There are so many digital currencies out there, it can be difficult to know what they all do, which brings me onto my first point.
Know the Crypto
There’s no point putting your hard earned money into a cryptocurrency if you don’t know what it is, what it does or what it is for. There are thousands of cryptocurrencies out there and some are pretty the same, and then there are some with no real foundation or real-world application at all and they exist because someone has created it. On the other hand, there are those digital currencies that have we have benefitted from an improved an area of business or our lives for the better. Take Ethereum for example, this would have been a brilliant digital currency investment at the very start of its life because there are so many businesses that utilize smart contracts built on the Ethereum blockchain. Everything that a cryptocurrency does, and plans to do should be outlined in its whitepaper which can be found on their website. So download it, take a look and make your choice.
Know the team
The digital currency is only as good as the people who created it and the team who are working tirelessly to make it become the best and widely accepted. Cryptocurrencies that have dedicated biographies outlining who the team is should be looked at closely, as these are the people who don’t mind being in the spotlight. That being said, some people aren’t in it for the fame, some people genuinely see the good in how their technology could help people.
Know the platform
There are too many exchange platforms to count, but there are some that you should completely stay away from and then there are those with a decent reputation. Information and reviews can be found on any crypto-related website or forum, so do your research and found out about fees, and prices and the support side of things.
Know the wallet
You need a safe place to store your digital currency investment and online wallets simply don’t cut it these days, so the safest bet is to invest in a hardware wallet. The hardware wallet will store your public and private keys in an offline state, completely separated from the internet. Most people agree that this is the preferred way to store your digital currency investments for the long term.