New to Crypto? Everything You Need to Know to Get Started

Ever since the inception of Bitcoin, cryptocurrencies have rapidly grown in popularity as a new asset class that is entirely digital – and an asset class that has  proven its potential for significant returns on investment.

If you’re new to cryptocurrency, navigating through the complexities of the crypto space can be daunting – but don’t worry we have got your covered!

In this article, we’ll be going over the basics of crypto, how it’s stored and how you too can get started in crypto with confidence.

Understanding Cryptocurrency

First things first, before jumping into the deep end with crypto it’s imperative that you take a moment to understand what cryptocurrency is and how it works. Cryptocurrency is a digital or virtual form of money that uses cryptography for security and operates on decentralised networks called blockchains.

Unlike traditional currencies issued by governments, cryptocurrencies are not controlled by any central authority, making them resistant to interference and/or manipulation.

Learn more: What is blockchain technology?

Factors to Consider Before Investing in Cryptocurrency

As a beginner, it’s important to understand the considerations for investing in cryptocurrency. Just like any other asset type, it’s essential to approach it with caution and diligence. Here are some factors to consider for investors of all levels:

• Research and Education: Before investing in any cryptocurrency, it’s crucial to conduct thorough research and educate yourself about the technology, the project behind the cryptocurrency, and its potential for long-term growth.
• Risk Management: Cryptocurrency markets can be highly volatile with prices experiencing significant fluctuations in short periods. As such, it’s essential to invest only what you can afford to lose and diversify your investment portfolio to spread out risk.
• Security: Security is paramount in the world of cryptocurrency. Choose reputable exchanges and wallets with robust security measures to protect your investments from theft or hacking attempts. Also, as we’ll get onto, understanding where and how you store your crypto is essential.
• Regulatory Environment: Stay informed about the regulatory environment surrounding cryptocurrencies in your country or region. Regulatory changes can impact the legality and adoption of cryptocurrencies, affecting their value and market dynamics.
• Long-Term Vision: While it’s tempting to chase short-term gains, successful cryptocurrency investing often requires a long-term vision. Look for projects with strong fundamentals and real-world utility that have the potential to grow and disrupt industries over time.

Related: Learn how to do your own crypto research.

How do I buy crypto?

With that being said, how does one buy cryptocurrencies? 

Buying cryptocurrency involves exchanging government-issued fiat currency (like NZD or USD) for the cryptocurrency you wish to purchase, such as Bitcoin, Ethereum, and many others. To get started you will first need: 

• A cryptocurrency wallet to store your crypto, and 
• A reputable cryptocurrency exchange of your choice as your gateway to buy crypto.

Once you have decided on the two items above, you can then proceed to deposit your fiat currency and exchange to your choice of crypto. Alternatively, you also have the option to swap from a stablecoin into the crypto of your choice.

The latter involves buying a stablecoin which is a type of crypto whose value is pegged to a fiat currency that will retain its value, and often used to quickly convert to and from between cryptocurrencies.  Below is a breakdown of the steps for buying crypto:

1. Choose a cryptocurrency exchange and wallet: Select a reputable cryptocurrency exchange where you can buy, sell, and trade cryptocurrencies. And also a crypto wallet of your choice to store and secure your cryptocurrencies. 
2. Create an Account: Sign up for an account on the chosen exchange. You will need to provide some personal information and verify your identity to comply with regulatory requirements.

3. Deposit Fiat Currency: Deposit fiat currency into your exchange account using a bank transfer, credit/debit card, or other available payment methods.
4. Buy Cryptocurrency Directly: You can use your deposited fiat currency to directly purchase the cryptocurrency of your choice, such as Bitcoin, Ethereum, or any other available on the exchange.
5. On-ramp from a stablecoin: Alternatively, you can exchange your fiat currency for a stablecoin like NZDD or USDT. Stablecoins are pegged to the value of a fiat currency and can be a good option if you prefer to wait for a favorable entry price to buy other cryptocurrencies.
6. Swap Stablecoin for Cryptocurrency: When you’re ready, you can swap your stablecoins for the cryptocurrency you want to invest in. This can be done on the same exchange platform.

Where do I store my crypto?

Now that you have a basic understanding of cryptocurrency and investment principles, let’s talk about storing crypto.

A crypto wallet is a digital tool that allows you to store, send, and receive cryptocurrencies securely. Think of it as a digital equivalent of a physical wallet that holds your cash and cards, but specifically designed for digital currencies.

Crypto wallets come in various forms, including:

• Hot wallets: these are wallets that are connected to the internet for easy access to your assets via mobile apps and browsers. Arguably the most popular type of wallets due to ease of access and convenience for frequent transactions.
• Cold wallets: wallets that function as offline storage for enhanced security against hacking. They offer higher security for long-term storage at the expense of convenience.
• Custodial wallets: crypto wallets that are managed by a 3rd party service provider (such as an exchange); your funds and assets are entrusted to the custodian for ease of access, at the cost of less control over funds. Think of this like a traditional bank.
• Self-custodial wallets: crypto wallets that give you full ownership, access and control over your funds and/or private keys. You are the sole custodian of your crypto. Offers high flexibility, full ownership of funds, but comes with great responsibility of taking security into your own hands.

Keep in mind that some of the properties of these crypto wallets overlap each other. For example, there are hot wallets that are custodial and non-custodial variants. 

Custodial wallets are often linked to a centralised exchange, establishing a co-dependency between the user and the exchange (similar to a bank).

Unlike custodial wallets, non-custodial options are purely tools to store your crypto and are not linked to an exchange, think of it like your personal wallet. You alone are the owner and custodian of that wallet.

Related: How do crypto wallets work?

Non-Custodial Wallet App vs. Custodial Crypto Exchange App

A frequent question among those new to crypto is the difference between custodial and non-custodial wallets. 

Below is a breakdown of the main differences between the two:

Custodial Crypto Exchange App:

• Managed by cryptocurrency exchanges, where users entrust their funds to the exchange (counter-party risk).
• Users do not have full control over their private keys and rely on the exchange to manage their funds.
• Convenient for trading and accessing a wide range of cryptocurrencies.
• Users sacrifice some control over their funds in exchange for convenience and seamless integration with the exchange platform.

Non-Custodial (or Self-Custody) Crypto Wallet App :

• Provides users with full ownership and control over their private keys and funds (no risk from anyone else using your funds or your funds being at risk should an exchange go out of business, etc).
• Offers the highest level of security and privacy due to it not being linked to a centralised authority.
• Users are responsible for securely storing their private keys and managing their wallet.
• Suitable for individuals who prioritise security and control over their funds.

Ultimately, the choice between a non-custodial crypto wallet and a custodial crypto exchange app depends on your preferences, security needs, and usage patterns. 

While custodial exchanges offer convenience and access to a wide range of cryptocurrencies, non-custodial wallets provide the highest level of security and control over your funds. 

It’s essential to weigh the pros and cons of each option and choose the solution that best suits your needs and preferences.

Other Things to Consider When Choosing a Crypto Wallet

Think of the last time you wanted to open a bank account. Surely there were considerations for you to weigh on before deciding which bank to store your assets in. 

The same applies with storing cryptocurrencies. Below are some considerations for you to think about when choosing a crypto wallet.

Security

In any asset type, security is a non-negotiable and integral component to protect your assets. This is even more so with cryptocurrencies, where transactions are irreversible and assets are stored digitally on the blockchain.

When evaluating the security of a crypto wallet, consider the following aspects:

• Encryption: Look for wallets that employ robust encryption techniques to protect your private keys and transaction data from unauthorised access.
• Two-Factor Authentication (2FA): Two-factor authentication adds an extra layer of security by requiring users to provide two forms of identification before accessing their wallets.

User Experience

User experience here refers to the overall quality of interaction you have with all aspects of the crypto wallet. That includes its UI design, ease of use, customer support, and more. 

Consider the following factors when evaluating the user experience of a crypto wallet:

• User Interface (UI) Design: wallets with good UI design are ones that have clarity and ease of use built into its design language. This makes your crypto experience more seamless, blending into the background enabling you to navigate and perform transactions.
• Customer Support: Assess the quality and responsiveness of the wallet’s customer support team. In the age of automations and bots, human customer support is becoming a luxury and can be the key defining user experience in your crypto journey.

Supported Cryptocurrencies

Different wallets support different cryptocurrencies, so it’s important to choose one that aligns with your investment goals and portfolio. Consider the following when evaluating the cryptocurrency support of a wallet:

• Supported Assets: Check whether the wallet supports the specific cryptocurrencies you intend to store or trade. Some wallets may offer support for a wide range of assets, while others may be more limited in their offerings.
• Token Compatibility: In addition to major cryptocurrencies like Bitcoin and Ethereum, consider whether the wallet supports tokens issued on various blockchain platforms, such as Ethereum’s ERC-20 tokens and Binance’s BEP-20 tokens. 

Privacy

Privacy refers to the preservation of anonymity, on-chain privacy and data protection for crypto users. 

The following are some things to consider when evaluating the privacy features of a wallet:

• Anonymity Features: Some wallets offer features designed to enhance a user’s on-chain privacy, such as multiple account creations and addresses to preserve their anonymity.
• Data Encryption: Look for wallets that encrypt your backup and transaction data to protect them from unauthorised access or surveillance.

By carefully considering these factors, you can choose a crypto wallet that meets your security, usability, compatibility and privacy needs, providing you with peace of mind as you navigate the crypto space.

Get Started with Easy Crypto Wallet

As you embark on your cryptocurrency journey, choosing the right wallet is crucial. That’s where Easy Crypto Wallet comes in. 

Crypto can be complicated sometimes, we get it – and we got you covered. We designed the Easy Crypto Wallet to simplify your crypto experience while also empowering you with the tools to take control and manage your crypto assets your way. 

The Easy Crypto Wallet is part of a next generation of self-custody crypto wallets designed to simplify the process of managing your digital assets and putting you in control.

Our entire approach to cryptocurrency has been about making things easy – removing the daunting complexity of enabling people to go on their own journey to financial independence.

The Easy Crypto Wallet continues in that vein combining the ease of use and wide crypto selection of an Exchange Wallet, whilst also incorporating the protection, security, and privacy of a Cold Wallet – making it the best of both worlds. Above all it is crafted with simplicity and ease of use as a central objective.

With Easy Crypto Wallet, you can:

• Easily on-and-off ramp from fiat to crypto with multiple payment options.
• Buy, Sell, Swap, Send and Receive Cryptocurrency: seamlessly with just a few clicks, anytime and anywhere.
• Choose from 50+ popular cryptocurrencies across different blockchains all in one wallet 
• Securely Store Your Cryptocurrency: Keep your digital assets safe and secure with the latest security and recovery features.
• User-Friendly Interface: Whether you’re a seasoned investor or a beginner, Easy Crypto Wallet’s intuitive interface makes managing your digital assets a breeze.
• Peace of mind in the crypto space with secure MPC signing and authentication for transactions.
• Create multiple accounts in one app to customise the wallet to your needs. Think of your mobile banking app, but for cryptocurrencies.
• Local Customer Support: We’ve got your back with a customer service team that is ready to help.

Get started today with Easy Crypto Wallet and unlock the potential of digital currencies!