10 Tips For Those Who Are New To Cryptocurrency

new to cryptocurrency

Chances are, if you’re reading this article, you’re new to cryptocurrency and that’s great!

You’ve come to the right place.

There’s a lot to know about the fascinating – and lucrative – world of digital currency.

So, read on for some tips and tricks for getting started. 

1. Cryptocurrencies are digital assets

In essence, cryptocurrencies (also referred to as ‘crypto’) are digital currencies that are not dependent on central monetary authorities such as governments or banks.

With these digital assets, you can buy and trade goods, or they can be used for investment.

Cryptocurrency is designed primarily to be used online and as are alternatives to currencies that are issued and controlled by governments. 

2. Many cryptocurrencies are decentralized 

Cryptography secures these virtual currencies, making them almost impossible to counterfeit.

They are decentralized networks that allow users to be their own bank.

While the majority of exchanges worldwide use centralized custody of user funds, decentralized exchanges enable users to trade while maintaining control over their assets.

Related: https://swyftx.com/learn/what-is-a-decentralized-exchange/

3. Crypto uses blockchain 

Most – although not all – cryptocurrencies use blockchain networks.

This secures them, as blockchains are constantly being verified and their accuracy is measured.

The reason for using blockchain as a foundation for crypto is because it means that secure payments can be made without having to be verified by a third party, such as a bank or other financial institution. 

Related: Is Blockchain Safe?

4. Blockchain transactions are secure 

In fact, thanks to the very nature of blockchain, transactions that use blockchain can actually be more secure than those made on credit or debit cards.

This is because you don’t use your personal information to make the payment, therefore there is no information about you to steal or copy, meaning there is less fraudulent activity.

Cryptocurrencies have been designed to be as safe as possible, and because they use open-source software, transactions are constantly examined and their security is validated.

5. It’s transforming the financial industry 

Blockchain is disrupting not just the world of finance, but the world itself.

The creation of a whole new currency base is changing the way products, money and power are exchanged.

Since the emergence of Bitcoin in 2009, fear and mistrust has started to give way to interest and excitement.

Blockchain technology goes even further than just crypto – it’s now being used to improve supply chains and the accuracy of records.

Essentially, it has many more, exciting uses.

6. It’s global, cheap and open 

Blockchain technology is global, so cryptos can be sent around the world quickly and cheaply.

Thanks to the construction of blockchain, crypto payments can be sent privately – this is advantageous for many reasons.

Additionally, all transactions are published in blockchain form, so anyone can see the transactions.

This means that there is no room for manipulation and it is decentralized. 

7. No middleman

Thanks to the technology, cryptos enable people to transfer value online without a middleman such as a processor (e.g. PayPal) or bank, at any time, for very low fees.

This makes it an attractive proposition for many.

Additionally, cryptos are managed by networks of computers that are running free, open-source software. 

8. There are many different types of cryptocurrency 

You’re likely to have heard of Bitcoin and maybe even Ethereum, but there are many different types of cryptos out there, such as Chainlink, Monero, Dogecoin, Polkadot.

Essentially, these virtual currencies are created and used online, and there are many different types, just as there are different types of countries’ currencies in the world. 

9. There are networks out there to help you 

Thanks to the entrepreneurial nature of crypto, there are many different networks – ranging in size – of individuals who have an interest in crypto and blockchain.

So, if you’re looking to start out, meet people with a similar interest to you or learn some more about the space itself, then you can use Facebook, Twitter or just a general Google search to find a group local to you or online for you to join.

As this can be a confusing space to begin with, it can be a great way to learn more from peers. 

10. It’s easy to buy and sell crypto

Online exchanges such as Coinbase mean that it’s easy and safe to buy crypto, even as a beginner.

You just need to create an account, and you can start buying crypto (even without a huge amount of money).

Conclusion For Those New To Cryptocurrency

This article is not the be-all and end all- there is still a lot for you to learn.

But I hope now after reading this, you’re in a much better position than when you first started reading.

You have some tools and foundational knowledge from which you can build on.

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