A Beginner’s Guide to Getting Started with Cryptocurrency

Cryptocurrency can be a little bit intimidating to some people, but it doesn’t have to be. Once you understand the basics, buying and selling crypto is easy. The most important thing is making sure that you’re thoroughly informed first and understand the risks and benefits of crypto. You also need to have a solid understanding of what they are, as well as their limitations. Let’s take a look at what beginners need to get started with cryptocurrency.

Learn About Cryptocurrency Types

The first thing you will need to learn is your major cryptocurrencies. At the time of writing, we would say that Bitcoin, Ether, Litecoin, and Ripple are the ones you should pay the most attention to. You can also look at a few lesser-known but still popular coins, like Cardano, for instance.

You will then need to understand what differentiates cryptocurrencies. Bitcoin, for instance, is purely transactional. Ether, on the other hand, serves as a form of ‘fuel’ developers have to use to power their apps, like the Ethereum blockchain. You can already see the fundamental difference between the two.

As a newcomer, you will also need to pay attention to tether. That’s because transferring currencies from fiat to crypto and back is not always easy. However, Tether is a cryptocurrency that replicates the movements of the US dollar.

This means that you can buy USDT instantly from an exchange like Paxful and be able to switch between cryptocurrencies easily while still taking advantage of the stability of the US dollar. This site makes it easy to trade coins with other verified members and you can accelerate transactions when you buy USDT instantly. It’s also very safe, and they have a great wallet that you can try as well, which brings us to our next points.

bitcoin cryptocurrency for beginners

Get Yourself a Wallet

Note that you will need a wallet if you want to exchange and store cryptocurrency safely. Do not leave your money on an exchange unless you have no other choice. Make sure they let you transfer your funds to your wallet easily.

Your wallet can be anything from a piece of paper with your private and public key to an encrypted USB key. It’s good to have a combination of wallets just in case. You can have a software-based one and a hardware one like the Ledger Nano, which you can store in a safe place.

Know that there will be no way to get your coins if you lose your private key. And there are many stories of people who have lost insane amounts of coins because of that. So, take that part very seriously.

Learn how to Trade

The next step is learning how to be an actual trader. You want to learn how to read candlestick charts. You want to learn how to use technical indicators to verify your predictions. This way, you’ll have a better idea of whether the coin might be over or undersold, for instance, and not just bet on movements.

This is really all that it takes for you to get started with cryptocurrency. Like anything, practice makes perfect, and the more you learn about trading and crypto the better your strategies and returns will be.

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Cryptocurrencies To Trade In 2021

If you are aiming to invest in cryptocurrencies, you are most probably spoiled with a choice since there are approx 7000 altcoins at this moment to trade with. Choosing the best is not an easy task. According to specialists in crypto trading, the year 2021 could be the best year for trading cryptos since the creation of bitcoin in 2009. At the moment of writing of these lines, the value of bitcoin has reached an amazing $20 000.

When trading cryptos, some take a long-term strategy (investors), others a short-term (trader). Either way, here are the three cryptocurrencies to watch out for over the next few months.

Ripple (XRP)

Despite an extremely competitive market, Ripple has stood out among digital assets. It is displayed alongside the most popular digital currencies like Bitcoin. And for a good reason, Ripple is not just a cryptocurrency. It’s also the name of a company and the Ripple blockchain network and also the name of its Real-Time Gross Settlement System (RTGS). Created in 2012 as OpenCoin by Jed McCaleb, XRP aims to provide another alternative to Bitcoin. In 2020, the Ripple has some impressive features when it comes to its weight in the market. Indeed, there are 44.2 billion XRP, 100 billion existing tokens, a stock market value of 8.3 billion dollars and a market capitalization of 18.8 billion dollars. Since all crypto assets are volatile, it is not possible to make reliable predictions, but Ripple looks promising.

Ethereum (ETH)

Ethereum or ETH is the second cryptocurrency on the market and therefore, the main competitor of Bitcoin. Yet, ETH was not originally intended to become a popular digital currency. The creator, Vitalik Buterin, wanted to design a blockchain in 2015. The goal was to create an exchange protocol (smart contracts) to simplify and secure online transactions. Today, Ethereum is worth more than around $ 450. It represents a market capitalization of over 20 billion euros and a total market volume of over 110 million euros. To invest in such a cryptocurrency, one should turn to approved trading platforms. Also, trading Ethereum requires some special skills related to trading strategies and ability to read the technical and fundamental analysis.

Litecoin – LTC

Litecoin could be a good investment due to the high liquidity as well as the large market cap.

Many experts for crypto are forecasting that the Litcoin will skyrocket in next year and in the years to come. Its supplies are limited to 84 million coins. Block reward for litecoin reached 12.5 LTC. That’s quite a high reward compared to the rest of cryptos. It’s not among technically the best currencies, but it has great potential. When it comes to mining litecoin, it takes approx two minutes to mine an LTC block.

Bitcoin (BTC)

Finally, Bitcoin (BTC) is the first digital currency on the market. Created in 2008 after the bankruptcy of the American bank Lehman Brothers which caused a multitude of economic reactions and a global crisis, Bitcoin keeps its first place on the podium. Considered today as a financial asset, Bitcoin also makes it possible to pay for purchases online and in certain physical points of sale. However, for the moment, this method of payment is still not very popular.

You can buy BTC either by obtaining peer to peer tokens or through an online crypto broker. Creating a crypto wallet is essential to store your tokens. Note, however, that Bitcoin is not unlimited, that is to say, that there is an exact number of tokens in the world and that the supply is reduced by 50% every four years during the famous halving. Like gold, Bitcoin is considered a safe haven, hence the fact that investors prefer to store them and not spend them while they gain value, to manage their finances well.

Learn More Before Using

No matter which of these recommended cryptos you choose for trading, be aware of risks that every investment. Don’t rush with your decisions. Before picking up the crypto, you have to do due diligence research of the market. Also, check out the crypto broker and compare their offers. Be sure to learn more about the way of work of the blockchain and crypto market. If you are a complete newbie, choose stable cryptos rather than just emerging altcoins. The coins we mention in this article are all perceived as a safe investment with strong networks and proven history. And most importantly, create your trading plan and achievable trading goals.

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