Does the current economic state get you down? Instead of investing in the traditional speculative fiat economy controlled by large banking institutions such as the Federal Reserve, why not try something more decentralized?
Enter cryptocurrency, an alternative investment option governed by mathematics and computer processing power, rather than the whims of a giant centralized bank.
Learning how to start trading cryptocurrency can be confusing. Even the terminology can be intense, with words like blockchain and Satoshi. This guide will help break it down for you into bite-sized chunks.
Cryptocurrency for Beginners
Cryptocurrency is the general name for an electronic currency that uses the principles of blockchain as its foundation.
Blockchain, in short, is an electronic ledger. It builds new transactions off past transactions so they cannot be falsified. Each new transaction has a bit of code from preexisting transactions.
This makes it easy to see if a transaction is a forgery, as a new transaction needs all of the existing code traced back to the first transaction ever.
The backbone behind cryptocurrency, as its name suggests, is encryption. All transactions are encrypted. The encryption process involves solving countless complex mathematical puzzles. This takes a lot of processing power.
At this point, we are getting a bit too far into the weeds for a beginning cryptocurrency enthusiast so let’s move on to different forms of crypto.
Types of Cryptocurrency
The king of cryptocurrency is Bitcoin. Bitcoin has become a household name in recent years due to the meteoric increase in its price from a fraction of a cent, to over $60,000 in 2021.
In addition to Bitcoin, there are hundreds, if not thousands, of other cryptocurrencies with more developed each day. Some examples of these include Ethereum and Litecoin.
You can open up any exchange and see all of the different cryptocurrencies available for purchase. None have as high a value as Bitcoin, but each has its unique attributes and advantages/disadvantages.
How to Start Trading Cryptocurrency
Your best for trading cryptocurrency is to find a reliable platform. While you can buy crypto from an individual using methods such as flash drives and external hard drives, this is not advised for your first few transactions
If you are looking for a beginner-friendly and secure option check out this company. They have all the resources you need and more to start trading crypto.
You can pick one of many cryptocurrency trading strategies. These include methods like day trading crypto, holding it for the long haul, and everything in between.
Do a bit of research to find out the best strategy for you. A good rule of thumb early on is to not invest too much money in crypto until you become more familiar with how it works.
Give Crypto a Try
Part of being a smart investor is having a diverse portfolio. If you don’t have any crypto yet, it is time to learn how to start trading cryptocurrency.
From buying crypto outright for cash to using a dedicated exchange you have many options. Pick your best option and start learning the basics of how crypto works.
Give cryptocurrency a try today. The sooner you start, the sooner you can begin to familiarize yourself with this emerging alternative economic engine. For all your other news and information make sure to check out our page.