10 Things Every Beginner Should Know About Cryptocurrencies

10 Things every beginner should know about cryptocurrencies, but you still don’t really know what they are or why you should care. You’ve just learned about this digital money called Bitcoin and it’s making headlines, but you’re not sure if it’s a good investment or even what role it plays in the bigger picture of things in your financial life. Don’t worry – we can get you from beginner to expert in 10 simple steps! You’ll be up-to-speed on everything you need to know about cryptocurrencies before you know it. Here we go!

1) Bitcoin (BTC) - What is it?

Bitcoin (BTC) is a cryptocurrency, also known as a crypto or digital currency. What does that mean? For starters, it means that transactions are made without any middleman (like PayPal or Visa). Buyers and sellers transact directly with each other. (How do they do it? With Bitcoin.) It's basically online cash. The value of Bitcoin is inversely related to fiat currencies like USD and EURO; meaning if those go up, then BTC goes down. In fact, during 2017-2018 prices for BTC shot up to over $19000 USD before beginning a sharp decline in late 2018 which continues through 2019.

2) What are Altcoins?

Altcoins are alternate cryptocurrencies to Bitcoin, also known as altcoins or alts. The most popular altcoin is Litecoin, a cryptocurrency that operates on Bitcoin’s blockchain and has very similar features, such as its ability to keep transaction costs low. Although many altcoins are based on popular currencies like bitcoin and litecoin, some are based on other projects. For example, dogecoin is a satirical take on bitcoin created as a joke in 2013. While it gained popularity at first because people thought it was funny (think: memes), it now has actual value and is accepted by businesses worldwide.

3) How do I get started with BTC?

First, you need to buy bitcoin. Once you do that, here are some tips for getting started with your BTC: Find a wallet. There are many different kinds of wallets to choose from, but a good starting point is one that offers both security and ease of use. Options include desktop, mobile and hardware wallets (such as Ledger Nano S or Trezor).

4) Security Considerations

When you think of cryptocurrencies, it’s easy to forget about all of their security considerations. After all, these are currencies – and anyone who has experience with traditional currencies will know that they don’t always need layers upon layers of security surrounding them. With cryptocurrencies, however, it’s a different story. There are still risks – but if you stay cautious and smart, you can avoid most issues by following some common-sense advice. Here are 10 tips every beginner should know to keep their crypto secure

5) Finding the best wallets

With so many cryptocurrency wallets to choose from, it can be tough to decide which one is best for you. Many people ask which one they should use, but the answer really depends on what you’re looking for. Do you want a desktop wallet that gives you full control over your coins? Or would you prefer a mobile-only wallet that makes transactions easy? Will it matter if your wallet has extra security features like fingerprint login or facial recognition software? And, most importantly, will your privacy be at risk?

6) Trading & Investing in Crypto

If you're interested in trading or investing in cryptocurrencies, there are a few things you should know before getting started. Just like any other market, if you don't have an understanding of how things work, it's easy to make costly mistakes. To help clear things up, we've compiled 10 tips that can guide your investment decisions and trading strategies. Make sure to take note of these guidelines as they'll help prevent beginner's mistakes that can set you back months or even years. 1) Diversify: Investing in one coin is always risky. Some coins will skyrocket in value while others will plummet into oblivion—it's just impossible to tell what will happen with any cryptocurrency, especially because new projects emerge every day!

7) Storing coins safely offline for long-term storage

If you've accumulated a good-sized collection of cryptocurrencies, it's time to think about storing them offline for long-term storage. The safest place for your coins is offline in an air-gapped or paper wallet. It may sound intimidating, but it's actually easier than you might think. You can even make your own paper wallet at home with no special materials required; it just takes a little bit of know-how and some free time. Once your coins are safely offline, they'll be far less susceptible to theft and you won't have to worry about paying transaction fees every time you move them from one exchange or device to another. For more detailed instructions on how to create and secure an offline storage solution for long-term coins, check out our guide here .

8) Biggest opportunities in 2022

Perhaps most exciting of all, we can expect cryptocurrencies to go mainstream. Retailers and service providers will start accepting Bitcoin and other major cryptocurrencies as payment—just as Amazon has changed its policies to accept Bitcoin for certain purchases. While it is difficult to project how much these changes will affect everyday consumers in 2022, what’s clear is that blockchain technology and its impact on cryptocurrency could be among our biggest opportunities in five years. As governments around the world issue their own cryptocurrencies, or put a stop to those created by other organizations, retail interest may decline—and prices along with it. Regardless of regulatory changes, at least some cryptocurrency marketplaces should continue developing new services designed to help consumers manage their funds.

9) Where to learn more about crypto

There are many places to learn more about crypto, but a few of our favorites include: Coindesk's beginner’s guide ; Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond ; and finally, Blockchain Academy . This will get you off to a good start. If you want to go even deeper into crypto, try reading Mastering Bitcoin or The Internet of Money. There is no shortage of free resources for crypto newbies. Just look at all of Coin Market Cap's Learn pages!

10) Don’t trust, verify

Bitcoin and other cryptocurrencies were built as a way to facilitate peer-to-peer payments, and trust is a big part of that. You don’t have to blindly trust that another person will do what they say—blockchain technology allows you to verify transactions yourself. This approach may seem difficult at first, but it gives you more power in how your money is handled. For example, if someone tries to send your cryptocurrency to someone else by pretending it came from you, you can easily verify that it didn’t. In addition, most services let you store some or all of your cryptocurrency offline in an encrypted wallet—meaning they aren’t subject to hacking or theft if your computer gets compromised by malware.