There are currently over 106 million people globally that own cryptocurrency.
While this might sound like a lot, it’s still less than 2% of the global population. Very few people own crypto or even know what it is. As it grows in popularity, however, people are quickly wanting to get involved to avoid missing out on everything it has to offer.
This guide on cryptocurrency for beginners is the perfect place to start your journey.
What Is Cryptocurrency?
Understanding cryptocurrency can be quite difficult. It’s a new concept and involves a lot of advanced technology.
Cryptocurrencies are digital currencies that operate on a decentralized ledger known as a blockchain. The decentralized technology used for cryptocurrency means that it can’t be controlled by any financial institution or government.
The first one to exist was Bitcoin, which was created in 2009. Today, there are thousands of different cryptos available, but Bitcoin is still the most popular.
The Biggest Cryptos Available
Different cryptocurrency trends affect the price of different coins. While they haven’t been around long, various cryptos have experienced major gains and losses over the years. Nothing has quite caught up to bitcoin, but several other coins have grown incredibly popular.
Ethereum is the second-largest crypto and was launched in 2015, making it quite old in terms of cryptocurrencies. The Ethereum blockchain is notable for being the largest blockchain to support NFTs, which is one of the reasons for its popularity. The main downside of Ethereum is that it has very high gas fees, which are essentially transaction fees that cover the power needed to complete transfers.
Other popular cryptos include Solana, Cardano, and XRP.
Investing in Cryptocurrency for Beginners
You can purchase cryptocurrency from an online exchange. There are many of these available, and while they’re generally quite similar in operation, they do have varying features. VirgoCX is a great place to buy Bitcoin Cash, Ethereum, and other cryptocurrencies in Canada.
If you want to buy cryptocurrency, one of the most important things to remember is that you should always DYOR (do your own research). Don’t buy crypto based on what someone else has said without first looking into the cryptocurrency so that you have a good understanding of what you’re buying.
It’s also important to never invest money you can’t afford to lose. While the main reason to invest is to make more money, cryptocurrencies are very volatile, and their value can drop quickly. It’s generally a good idea to diversify your portfolio so that if one coin drops suddenly, it will only be a small portion of your funds.
Is Crypto Right for You?
Getting into cryptocurrency for beginners can seem daunting. The most important thing to do is learn so that you know what you’re investing in. Do some research on the biggest coins to see why they have done well, and always look into anything you plan on buying.
For more tech articles check out some of our other posts.