This guide will help you get started with cryptocurrency


Here you will find everything you need to know to start trading cryptocurrencies, from understanding what crypto is to taking steps towards investing.

cryptocurrency has seen a massive rise in popularity, but where it used to appeal to a very specific audience just a few years ago, now everyone wants to learn to invest. And the growth of cryptocurrencies is not even close to ending. the world cryptocurrency marketwhich was valued at $332 million in 2017, rose to $3.67 billion in 2020, and is projected to reach almost $400 billion by 2028.

So what does all this mean? Should you get involved and how to get started? invest in cryptocurrency? Before we jump right into navigating the digital space, let’s answer a few frequently asked questions you might have:

a cryptocurrency is essentially a new way of digital moneyand when cryptocurrencies go mainstreamyou can use them to pay for things electronically, just like you do with traditional currency.

With cryptocurrency, there is also the possibility of getting rid of banks and other centralized agencies; instead, all computers on the network can confirm any transaction made. Like stocks, cryptocurrencies can also rise and fall in value, making them a risky but potentially profitable source of income.

illustration of a couple talking about crypto

There are 10 popular types of cryptocurrencies currently on the market, with the best known being Bitcoin Y Ethereal while smaller ones include Tether, USD Coin, Luna, and Binance Coin.

So what is Bitcoin? Bitcoin was the first product of the first blockchain developed by Satoshi Nakamoto, an anonymous entity. Established in 2008, it was not a new idea at the time: there had been more than a few attempts to create a digital currency before.

Have you heard of Ethereum? Like Bitcoin, Ether operates on its own blockchain, but unlike Bitcoin, Ether is limitless, meaning an infinite number of coins can theoretically be created.

illustration of a block chain

Essentially, a chain of blocks it is an information logging system in a way that makes it impossible to hack. It is a digital ledger of transactions that is distributed throughout the network of computer systems that use it and each block in the chain contains a series of transactions.

So how do you start trading on the blockchain? We’ve broken it down for you, making the process simple.

It is important to know how to choose a cryptocurrency wallet as all your funds will reside in it. There are some basic steps you need to follow when setting up a wallet for the first time, but the most important thing is Do your research.

Determine what kind of wallet do you want to use. There are generally three options available; hardware, desktop and mobile wallets. We recommend a mobile wallet as it uses mostly downloadable software and is one of the most common wallet types available for keeping track of your assets. They are generally easy to use and have good security.

Safety should be at the top of your mind when choosing a crypto wallet because this piece of software can be easily accessed using your private keys. Private keys are basically the password to your funds and are given to you at the time of setup. In other words, control of private keys equals control of your money.

Different brokerage platforms offer different advantages/disadvantages, so read about each one and choose the platform that suits you best. Some recommended brokerage platforms include eToro, crypto.com, or Alvexo. It can be overwhelming for a beginning trader to decide which platform to use, so here is a checklist of what to look for when deciding:

  1. Choose a platform with more active years, as it is usually more reliable and resistant to scams and fraud.

  2. Know what currency you want to invest in and make sure the platform sells it, for example, small exchanges usually offer small cryptocurrency trading, but if you are looking for a lot of money, choose a larger platform.
  3. Find out what the transaction fees are for an exchange: the lower the better.
  4. Read the reviews of the platform and discover its usability.

After creating an account with a cryptocurrency broker, you can easily connect your bank account and fund your account via debit cards and wire transfers.

There are currently over 7,000 cryptocurrencies in circulation, so research which one is right for you and choose a cryptocurrency based on its performance. Some examples are Bitcoin, Ethreum or Litecon.

Financial risk can be mitigated with an efficient trading strategy and will prevent you from making impulsive judgments that can cost you a lot of money.

As a beginner, we recommend that you consider trading on a test platform such as “Binance Futures testnet” to familiarize yourself with the world of cryptocurrency’s ups and downs, and then move on to your chosen platform when you feel more confident.

“Don’t put all your eggs in one basket”, as the saying goes. Investing in digital assets can be lucrative, but the chance of losing your money can come just as well.

Diversifying across multiple cryptocurrencies helps you reduce your losses should a cryptocurrency drop in price. You can then store your coins in your crypto wallet.

Read more: How to trade effectively in the Crypto market?

Read more: Reasons Why NFT Crypto Art Makes a Great Christmas Gift

Stay up to date with the top stories from Reader’s Digest by subscribing to our weekly newsletter