How To Use Crypto: A Beginner’s Guide
With kids earning $30,000/month mining cryptocurrency, it’s no wonder why this new technology has gained popularity. Aside from earning a decent income, there are many reasons to get involved with crypto.
If you’re new to crypto, it’s not too late to get started. The beautiful thing is that crypto opens the world up to financial possibilities previously unavailable. Without the need for a third party, anyone can get started.
To begin to learn how to use crypto, you’ll want to stick around. Read our guide below to give yourself the 411.
Buying and Trading Crypto
Buying and trading cryptocurrency for beginners has become very user-friendly and intuitive. Popular apps such as Cash App, Venmo, and PayPal all allow you to buy, trade, and store cryptocurrency.
Coinbase is the most popular cryptocurrency change out there. It is seen as the Google or Facebook of crypto.
Getting in and out of crypto is relatively simple with a linked bank account. From there, you can take advantage of low fees and many types of cryptocurrency to invest in.
When learning how to use bitcoin, many agree that it has become more of a store of value à la gold. This is because they believe it will appreciate over time.
How to Use a Crypto Wallet
As you learn how to use crypto, you’ll need to get a cryptocurrency wallet. Each cryptocurrency takes advantage of its blockchain (a public ledger).
This means that you can only send and receive crypto of the same kind (for example, send bitcoin to a bitcoin wallet). If you do otherwise such as sending bitcoin to an ethereum wallet, your money will be lost forever.
You’ll come across two different kinds of cryptocurrency wallets: hot and cold.
A hot wallet is connected to the internet. While this makes things much more convenient, it increases your vulnerability as well.
It is encouraged to keep small amounts that you’d use for daily transactions on a hot cryptocurrency wallet. You never want to store your crypto on an exchange either as they are highly susceptible to hackers and attacks.
We recommend non-custodial hot wallets, as you’ll have access to your private key and seed phrase.
Your private key or seed phrase is extremely important and must be handled with great care. Anyone who has access to this has access to your crypto. Remember the mantra—not your keys, not your crypto.
A cold wallet isn’t connected to the internet. This makes things much more secure.
Popular cold wallets or hardware wallets are Cold Card, Trezor, and the Ledger. A cold cryptocurrency wallet makes an excellent choice when learning how to use crypto as it greatly diminishes your chances of losing your money.
We hope you enjoyed our how-to-use crypto guide. As you familiarize yourself with crypto, you’ll start to see the many benefits over the traditional financial system.
There are tons to learn and it’s always changing too! To gain an advantage over the next person, be sure to read our blog today!