What if there’s a technological advancement so powerful that it transforms the very basic pillars of our society, a technology that fundamentally influences the way that our economic governance systems and businesses function and could change our conceptual understanding of trade ownership and trust. This technology already exists and it’s called cryptocurrency.
Bitcoin and other cryptocurrencies have caused a paradigm shift and it’s time to explore this new technology constructively and critically and openly discuss its potential applications.
The Most Comprehensive Guide of Cryptocurrency For Beginners
This is a definitive guide for newbies on the most proficient method, to begin with putting money into computerized currencies like Bitcoin Ethereum, and other cryptographic assets.
The best part is that it will be significantly simpler than you might have suspected before.
If you are an apprentice then you might want to go through the entire article but if you’re more experienced and acquainted with the fundamentals then you can use the table of contents and move straight towards your desired topic.
What is Cryptocurrency?
First of all, crypto means that there is encryption and it also means that it’s a computer program so it must be encrypted money/currency or in cooler words – cryptocurrency.
A cryptocurrency is a digital representation of something valuable, such as money, that only exists online. Cryptocurrencies use cryptography to verify and secure transactions and are deemed by crypto enthusiasts as ‘the foundation of a better future economy.
But what’s wrong with how we pay for things now?
In a few words, it is too centralized. Every purchase that we make need to be approved by a third party such as banks, for which they charge a fee, adding up to a considerable amount of money over time. Transactions can also be extremely slow, it can sometimes take days for a bank to guarantee that a payment has been received.
There are many other issues with fiat currencies like you need a bank account/credit card, you need to provide sufficient verifications, there are limits on transactions, funds can be frozen by authorities, zero privacy, and many more.
Cryptocurrency solves all these issues. All you need is a smartphone/computer with a working internet connection and you’re all set.
Cryptocurrency For Beginners
I’ve explained and distributed this article into nine different segments/parts that you have to understand before putting resources into digital money.
Go through these nine stages before you go and buy cryptocurrency.
9 Steps Before Buying Cryptocurrency
The main thing you have to do is get yourself some pen and paper because it’s the most secure approach to keep the entirety of your data hidden.
Use your paper notepads to store the entirety of your passwords, login qualifications, and other delicate data with respect to your crypto wallets, trades, and other records.
Note: Never store passwords or login information online, with a secret key supervisor, or on any gadget associated with the web. You have to store the entirety of your data on paper.
Consider making two/three copies and putting away one in a secure safe at your home and another at a storage box at a bank or something comparative.
Always remember that you are your own bank and there are no pre-constructed safeguards in this innovation and there are programmers everywhere attempting to take your assets so it entirely depends on you to find a way to ensure the safety of your assets.
Stage 3: Solid Password
While setting up your crypto money venture accounts, ensure that passwords are amazingly solid. The reason behind this is that programmers are not hunching around on PCs attempting to figure your secret password, they use programs that unceasingly go through enormous information on the basis of normal passwords and irregular mixes of characters.
To shield yourself from this, you have to make exceptionally long passwords containing arbitrary numbers, letters upper/lower casing, and unique characters.
Just don’t use passwords based on basic expressions, renowned film lines, or spell words, or even sentences Your password needs to be as complex as possible.
For example, 2Ra1f@gm%qwm9i!
Also, never use a similar secret phrase in more than one place.
To build security ensure that you never store passwords for digital currency accounts on cloud-based password manager websites like LastPass because these sites are powerless against these assaults. That is the reason I suggest just putting away passwords on your paper.
You are your own bank so you have to have more than one line of defense and here’s a reward tip.
Tip: If any website requires a security question like what is your maiden name? What was your secondary school’s name?, use a phony, complex answer because individuals can undoubtedly discover your mom’s birth name and where you went to secondary school on sites like Facebook.
Remember to store the phony solutions of your security inquiries in your paper notepad with all else.
Stage 4: Malware and Viruses
Next, you have to do a full and complete malware sweep of your PC. You need to guarantee that your PC is secure and liberated from any kind of malware before you set up any records and wallets for purchasing cryptographic money.
I will also suggest you use a key scrambler. Key scramblers are extraordinary apparatuses that scramble the functioning of concealed keystroke logging malware and prevent them from recording your passwords to hack into your records by scrambling all that you type continuously.
Stage 5: Mobile Number
Mobile numbers are used to get to a heap of touchy, sensitive information incorporating banking and cryptographic money.
You must ensure that you won’t access crypto-related records on your cell phones because they play an immense part in the security and on the off chance that you do use it, you have to find a way to make sure the mobile number related to your crypto money stays private (at least not disclosed on social media or so).
Never supply your mobile number openly or to individuals, you don’t trust or have a clue about. I realize this is extremely hard to do in our web-based media-driven world yet it’s a basic advance to guarantee the security of your assets.
Also, your phone should require a secret passcode to gain access every time that way if it’s ever lost or taken, there’s a hindrance between a possible programmer and your speculations.
Tip: Get on the telephone with Verizon or whoever your supplier is and set up a solid passphrase that must be unveiled before going any further or enacting new SIM cards for you.
Stage 6: Email Address
An ideal way to get started is to make a fresh out-of-the-box new email address to utilize a handle you’ve never utilized anyplace else.
This implies that your new email address will not be associated with other networks and if by any mishap an attacker gains access to it, he won’t be able to link it with any other information about you.
Don’t utilize this new email address for shopping or marking it for bulletins and different things. Just use your new email address for crypto-only and don’t educate any other person about it.
I suggest setting up your new email account utilizing Protonmail or another comparable email supplier that provides a similar or higher level of security.
First of all, pick an exceptional username that you’ve never utilized anyplace else and create a solid secret passphrase and also register a recovery email. Ensure the email address you use for the recovery has a solid secret phrase too.
Now you have a scrambled and private email address to use to set up your digital currency accounts. This new email address should just be utilized solely for crypto ventures.
Stage 7: 2-Factor Authentication
You will need to download some two-factor authentication applications for this step. Two-factor confirmation is an additional layer of security that is totally critical to an arrangement before putting resources into digital currency.
The way it works is that while getting access to a website and after entering your email and password, you will be needed to include a code that is created on your two-factor verification application.
These codes continually change each twenty to thirty seconds so nobody will have the option to get to your records except if they have your number/device at that specific second in time.
There are two diverse confirmation applications that you can download and use i.e. Google Authenticator and Authy. Some people lean towards one over the other and some people utilize both of them. I for one favor Authy over Google Authenticator.
Stage 8: Cryptocurrency Wallet
This is one of the most significant strides to take before investing in any digital money and the vast majority will never do it.
You have to get a chilly stockpiling hardware wallet to store your digital money.
These gadgets cost cash and they are worth every Satoshi (Satoshi is the smallest unit of Bitcoin and it is to bitcoin what penny is to US dollar).
There are many distinct kinds of wallets out there and many of those wallets just save digital forms of money on the internet but you should know that no digital information is ever completely secure.
Also, remember never and I repeat never at any point leave your cryptographic money on cryptocurrency exchanges as it’s dangerously hazardous and programmers are continually attempting to break into trades.
The most secure spot to store your cryptocurrency is on a cool stockpiling hardware wallet gadget. These gadgets store the keys to your cryptographic money offline and are safe from the internet so it’s the most secure approach to store all your crypto assets.
Ledger and Trezor are the biggest players in the hardware wallet sector.
Trezor Model T Features
- 1000+ cryptocurrencies supported
- OLED Touchscreen
- Isolated from external environment
Ledger Nano X Features
- 1000+ cryptocurrencies supported
- Bluetooth connectivity
My undisputed top choice for a Hardware wallet is the Trezor Model T because it doesn’t require any external medium to access its sensitive information which makes it the most secure hardware wallet there is.
Note: Never purchase a pre-owned Hardware wallet and never purchase a Hardware wallet from an alternate source.
Stage 9: Make a Will
You’re practically prepared to purchase digital currency. So the last step before going ahead is something you have to consider regarding the legality of your assets.
Overseeing digital currency can be messy and difficult to do and if something somehow managed to transpire I’m certain there’s somebody who might be listening.
Your family would need to profit from your interests in case of your weakening or demise, your loved ones would presumably struggle to sort out ways to deal with your ventures without anyone else. So use your paper journals to record nitty gritty notes and guidelines to make sure that your loved ones will be able to access all your interests.
I likewise strongly suggest you go the additional mile and make a will, a trust, or different reports that could be legitimately executed in case of your demise to do your desires. Furthermore, make it straightforward and definite enough so no third party could stall it out.
Cryptocurrency For Beginners: Three Warnings
Practically, there are no safeguards set up to secure you on the off chance that you commit an error or on the off chance that you don’t comprehend what you’re doing.
There’s no hotline you can call when you stall out, there’s no corporate central command you can contact in the event that you lose your assets, there is no FDIC guaranteed bank behind these speculations.
This implies you could lose the entirety of your ventures from programmers or client mistakes with no response at all.
Cryptographic money is front-line innovation. It’s the cutting edge Wild West and so it requires some engaged time and energy to hold your head over it.
The second thing you have to know before we go any further is the brilliant standard of contributing i.e. never invest beyond what you can bear to lose.
High danger can prompt high reward and as human beings, we have a characteristic inclination urge to overextend. So you have to sort out a sum you’re okay with contributing and more critically, a sum you can genuinely stand to comfortably invest then you have to stay with that sum and show restraint toward the cycle.
Digital currency is much more unstable and unusual than financial exchange. Unlike traditional stock exchanges, digital currency is exchanged every minute of every day around the globe.
As a crypto speculator you have to create your own spending plan, a measure of cash you will invest, and adhere to it.
Since you’re not managing any banks and other outsider budgetary establishments. This cycle will essentially help you set up your very own bank to deal with your very own assets.
The third thing you have to know is that it’s critical to focus on the URLs of the sites you’re going to visit. This is to guarantee that you’re not visiting a phony one that is claiming to be the genuine one.
Additionally, you need to ensure that there is an HTTPS convention in the URL and not simply an HTTP one. This implies that the webpage has a Secure Sockets Layer or an SSL securing the data.
Consistently guarantee that the real URL is right because there is a huge load of phishing locales that profess to be the genuine website so as to take your username and secret key to access your record on the genuine site.
Once you are 100% certain you’re getting to the correct URL, bookmark the page and just access the webpage by utilizing that bookmark that way you never become prey to a phishing website.
To make it more secure and simpler for you, I have listed all the major websites at the end of this article so you can go ahead and bookmark this page too.
For the sake of keeping this article simple, we’re going to go ahead and proceed with only one cryptocurrency exchange i.e. Coinbase.
Coinbase is one of the most secure and least demanding cryptocurrency exchanges. If Coinbase doesn’t have the digital form of money you need to purchase or it isn’t available in your country, you should go at the end of this article and see all the cryptocurrency exchanges and decide which one is best for you.
After clicking the link, it will take you to a screen that says “Buy and Sell Cryptocurrency” and some data. Just bookmark it and that way you never become a survivor of a phishing webpage.
Click on ‘Get started’ Fill in your first name, last name, your Protonmail encoded email account, and a long unpredictable secret key with irregular mixes of letters, numbers, and unique characters.
Remember to record your secret phrase on your paper notepads. Affirm that you are not a robot and click the check box ensuring you’re more than 18 years of age.
Sign in to your Protonmail account and check your email address by tapping on the check email address interface.
Then you will be incited to include your mobile number on it and afterward click ‘Send Code’. Binance will automatically empower 2-factor confirmation requiring a code shipped off to your telephone through instant message. However, it is not mandatory.
Note: Please don’t get scared the first time you log in to Binance and see your dashboard. Instead, take 2 minutes and explore the platform because it’s really easy to use once you start to get the hang of it.
When you log in to Binance check to ensure that your first and last name are right. Then point and pick what you will use Binance for.
Make sure the data you give while joining Binance is precise so your record can be handily checked to evade any stops for monetary guidelines.
Next, you should set up a financing account to buy cryptocurrencies.
Your options are to associate a credit card, online merchant, or wire. PayPal is useful mainly for pulling cryptocurrency back into fiat currency, a credit card is useful for buying modest quantities of cryptocurrencies and a wire move is just useful for single exchanges to or from your Binance.
You will also see a notice about the measures Binance takes to keep your records safely.
Your profile is created now.
In the upper-right profile area, click on the profile image and click on settings, go to the security tab and go down to the 2-factor confirmation portion.
You’ll see your current settings are text or SMS.
To set the 2-factor confirmation which is simply honorably secure, go to the Authenticator application and click select, enter the 2-factor check code transported off your phone then click avow, open the Google Authenticator application on your phone, and click the incorporate sign.
Tap analyze scanner tag and hold your phone up to scan the label like you’re snapping a photograph of it.
Enter your two-factor confirmation code for the Binance account on your Google Authenticator before the code changes. Then tap ‘Enable Now’ and you’re all set.
I energetically propose setting up various security options to safeguard your account.
Recall you are your own bank and it’s your obligation to keep your assets safe.
Next, look up and tap on account levels.
You should see that you are at level 2.
For confirming your own personality, you have to clear the crate under level 3 with some type of picture ID so you’re ready to send and get digital money with Binance.
Click on the confirm personal ID box and afterward a window with a possibility for a driver’s license or a personal ID will spring up, go through the process, and afterward, you will have the alternative to use your PC webcam, your smartphone camera or you can transfer a document whenever you’ve presented the mentioned reports.
Binance will survey them and either request more data or will acknowledge the information. Once you’ve passed the process and you’re at level 3 you’ll have the option to send and receive a vast majority of cryptocurrency on Binance.
All the transactive cryptocurrencies will now be available for you.
Note: Specific nations and states may confine which cryptocurrency is accessible relying upon their own laws and guidelines.
Also, Binance is continually adding new cryptographic forms of money to their trade for individuals to purchase and sell.
Now that you’re prepared to purchase a cryptocurrency, click on the purchase tab, pick the digital currency you might want to buy using Fiat currency.
Make sure you have sufficient financial balance and the cryptocurrency choice is precise and afterward enter the sum you wish to purchase with your fiat cash or you can enter the measure of digital currency.
Next, simply proceed by tapping the Buy button and the digital currency will be saved into the digital currency wallet on Binance.
Please recollect and transfer your crypto coins into your personal cold storage wallet because cryptocurrency exchanges like Binance can’t assist you with any misfortunes that come about.
It is your duty to use a solid secret phrase and keep up control of all login accreditations you use to get access to your currency because cryptocurrency exchanges like Binance are under consistent assaults from programmers attempting to get through and take reserves.
Despite the fact that Binance keeps the majority of the digital money disconnected and away from the internet, it is anything but a smart thought as a crypto speculator to depend on outsiders.
Since securing your assets is of utmost importance and leaving your digital currency on cryptocurrency exchanges like Binance is not very safe, you should immediately move your digital money to your cool stockpiling hardware wallets like Trezor or Ledger.
Your cryptocurrency will be incredibly safe if you followed the means I recommended and you purchased the hardware wallet pack.
On the off chance that you don’t have a hardware wallet yet, click here to securely get to the official store of Trezor.
Again never purchase a pre-owned Hardware wallet and never purchase a Hardware wallet from an alternate source.
Then all you need to do is move your digital money from Binance to your Trezor hardware wallet.
While doing so, confirm that all the subtleties are right on the exchange and wallet and if everything looks great, go ahead and send the money from your Binance exchange wallet to your cold storage wallet.
You will see that your Bitcoin is in transit from Binance exchange to your personal wallet.
Now you can use your cryptocurrency for any means.
Why Cryptocurrency is Better Than Fiat Currency
- First of all, cryptocurrency is more durable than fiat currency because you can’t rip or tear digital currency.
- Secondly, cryptocurrency is more portable than any quantity of money. You can fit it on a cheap little phone or a USB stick.
- Thirdly, digital currency is more divisible. For example, bitcoin is divisible to eight decimal places while fiat currency is only divisible to two.
- The acceptability is a little bit muddier because fiat and crypto are currently battling it out. Technically crypto is much better designed for acceptability because it’s a universal currency and doesn’t require any third-party permission.
- The use of fiat currency is restricted to a country or a group of countries while a cryptocurrency is exactly the same regardless of what country it’s being used.
- Cryptocurrency also wins in counterfeit ability because cryptocurrency algorithms ensure that duplication of a crypto coin is impossible.
Cryptocurrencies can also be linked to smart contracts and do things that we could never have done before. Now we’re also getting into next-generation blockchains.
So it’s now not just about currency anymore it’s about entirely new financial ecosystems for example decentralized peer-to-peer trading DAPPs (Decentralized Applications) which rewards users in exchangeable cryptographic tokens for the value that they add to the platform.
Historically as each new iteration in currency comes along, it brings with it monumental changes, often in efficiency and simplicity.
Cryptocurrency the most recent iteration, comes loaded with many improvements over our currency system.
The main characteristics of money are durability, portability, divisibility, acceptability, counterfeit ability, uniformity, and limited supply.
Paper money has a host of issues namely government overspending and inflation.
The modern version of paper money differs from its predecessor (Precious metals like gold, silver) because now the money we use isn’t limited in supply.
Governments can manipulate the money supply based on their current monetary policy.
For example, if an economy is overheating a government can limit the money supply on the other hand if an economy is in recession a government can print more money to put into circulation.
So if your concern is that cryptocurrency isn’t tied to anything real and that it’s just Internet money well you can rest easy knowing that neither is what you’re carrying around in your wallet or purse.
Paper money only has value because we all collectively agree that it does.
On the other hand, cryptocurrency is programmable and that’s a characteristic that was unthinkable in the past.
I believe we’re at the intersection of a major change in the financial system because up until this point every iteration of money hasn’t been able to perfectly satisfied the users.
To put it bluntly, cryptocurrency beats fiat currency on virtually every money characteristic.
With that being said, we conclude our ‘Cryptocurrency For Beginners’ article.
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