Crypto - an easy guide for beginners
Have you always wanted to get into cryptocurrency (crypto); but don’t know where to start? Is all the jargon confusing and scary? Or are you simply afraid of losing money? If you answered ‘YES!’ to any of these questions, this guide is for you.
We believe that crypto is for everyone! So let’s help you get into crypto - the easy way.
About this guide
In today’s world of finance, crypto literacy is more important than ever. We’ll help you navigate this exciting new world with confidence by exploring the key topics:
What is crypto?
Imagine a digital form of money that allows you to pay for goods and services and send money to friends and family locally or overseas almost instantly with just a few taps of your smartphone. All of this, and more, is possible with crypto! Crypto is simply ‘digital currency’ or ‘virtual money’ that you can transfer - without intermediaries like banks - over the internet.
For the brainy bunch: The term ‘cryptocurrency’ is a combination of the words ‘cryptography’ and ‘currency’. Cryptography is a method of securing information using secret codes to keep things safe (encryption); and currency is just another word for money. So, cryptocurrency is digital money that is protected by secret codes to keep it secure and safe from hackers.
How does crypto work?
Crypto enables individuals to act as their own banks! It’s super easy to transact directly with other crypto users without the need for a ‘middle man’. All crypto transactions are recorded on ‘the blockchain’. This is simply a public record that is shared across everyone who participates (hundreds of thousands of computers globally). Because it is so widely shared (distributed), it is impossible to tamper with. There are hundreds of digital coins that operate using the blockchain. Two of the most well-known ones are Bitcoin and Ethereum. Some have broad uses as a digital currency (like sending money peer-to-peer), while others have very specific, niche uses such as for lending.
Why is crypto cool?
Accessible to all
Crypto can be used by anyone providing equal access to financial services globally - even for those who may not have access to banking.
You’re in control
Crypto accounts use cryptography for security. Storing coins in a wallet gives you full control, making it difficult for hackers to access or steal your funds.
No restrictions
Unlike banks, crypto can’t be frozen by governments. You have access to your money 24/7 and there are no middlemen or fees like with traditional transfers.
Storing your crypto
A crypto wallet helps you store, send and receive your crypto. It doesn't hold actual coins, but keeps the ‘keys’ (passwords) that give you access to your crypto on the blockchain safe. If you lose these keys, you lose access to your crypto. Some wallets use complicated keys called 'seed phrases' that are hard to remember, while newer wallets, like the Easy Crypto wallet, use simpler methods and offer help if you forget your password.
Your wallet has a unique address and you will be asked to share this with your exchange when buying crypto or when receiving crypto. This is safe; but you should never share your keys with anyone - doing so could give someone full access to your funds.
Be cautious of storing crypto on an exchange, as it’s riskier than using your own wallet. You can find out more about storing your crypto in your own wallet vs allowing someone else (such as an exchange) to store your crypto here.
For the brainy bunch: Wallets can be online (an app that is connected to the internet - known as a ‘Hot wallet’) or offline (a USB drive - known as a ‘Cold wallet’). Offline wallets are often safer for storing large amounts.
How to buy your first crypto
Getting started with crypto is a really easy four-step process:
1. Sign up
The first step is to sign-up with an exchange. An exchange is how you purchase your coins (think of them as a crypto ‘shop’).
2. Complete ‘verification’
The exchange will ask you to follow some easy steps to ‘verify’ you, including asking you for proof of your identification. This process is known as ‘Know Your Customer’ and ensures that the exchange is not being used for illegal activities like funding terrorism or evading taxes. It also helps prevent fraud, fight money laundering and provides a safer trading environment.
3. Purchase crypto
You can quickly and easily buy crypto within minutes using your crypto wallet to store your coins. Our step by step guide provides simple instructions on making your first purchase through Easy Crypto.
4. Store your crypto
You will need to have your wallet address ready so that we know where to send your crypto. We will never ask you for your keys.
Congratulations - welcome to the world of crypto! Now that you have made your first purchase, you can send and receive at any time of the day or night. You’re in control!
Staying safe
The crypto landscape is constantly evolving and it’s a good idea to keep yourself updated on the latest security practices and potential threats. You could join crypto communities like the Easy Crypto Community Facebook page and follow trusted news sources.
Here are some additional safety tips:
Do your homework
Research any crypto provider before trusting them with your assets to ensure their reputation and security measures are solid. (At easy Crypto, your safety is our top priority and we have lots of smarts in place to protect our customers. Find out more.)
Use a secure wallet
It’s important to store your crypto using a reputable wallet that will protect your keys. (We think ours is awesome and that you will too! Find out more.)
Enable two-factor authentication (2FA)
Turning on 2FA for your crypto accounts (such as your exchange account and wallet) means that anyone who tries to log in will require a second verification step (such as a code via email), making it harder for unauthorised users to access your accounts.
Beware phishing scams
Be cautious of emails asking for your wallet keys or personal information. Always verify sources before clicking links and use official websites.
Keep software updated
Regularly update your wallet and trading apps to protect against vulnerabilities.
Crypto trading: understand the risks and rewards
Crypto trading can be exciting, but it's important to understand the risks. Prices can go up and down very quickly, meaning you could make money fast - or lose it just as fast. Unlike traditional markets, crypto trading is more unpredictable, so it's essential to only invest what you can afford to lose. Have an idea of your ideal goal from your investment, i.e. is there a price you would sell at or are you putting away small amounts over time to build up a savings pot? Crypto offers the chance for high rewards if carefully managed. Doing your own research or seeking professional advice is always a smart move.
Diving deeper: different types of crypto
There’s more to crypto than just Bitcoin. Each type has its own purpose and value. Exploring different cryptocurrencies helps you understand which ones fit your goals and how they work together in the larger digital economy. You can learn more about the crypto coins Easy Crypto sells here.
Disclaimer: Investing in crypto carries risk. Always do your own research or seek professional advice. Terms and Conditions apply