A Beginner’s Guide to Cryptocurrency

In the past twelve months alone, the cryptocurrency market has grown rapidly from $11 billion USD to the lofty heights of $795 billion USD. As trading in cryptocurrencies and awareness of the cryptocurrency market continues to be more prevalent in mainstream media, these numbers will only continue to rise.

With more than 1,500 cryptocurrencies currently on the market, deciphering the wild west of crypto can be a daunting task, but it need not be. Below, you will find our beginners guide to cryptocurrency.

Let’s start with what exactly is a cryptocurrency? The basic answer here is that cryptocurrency is a form of digital currency that has been designed to be ultra-secure and anonymous, with every coin being unique – once a coin is used, it is verified on a network which creates a public record of the transaction. This prevents the same crypto from being used twice by the same person.

But where can you use cryptocurrencies and how do you buy them? Cryptos can be used both on and offline, with retailers such as Apple now accepting at least 10 different cryptosas a viable payment source on the App Store. You can buy cryptocurrency through exchanges but should buy a cryptocurrency wallet to do so, which is where any cryptocurrency you buy, or sale, will be stored and kept safe.

You may now be thinking that this all sounds great, but what is a cryptocurrency exchange? An exchange is a business that lets crypto owners trade their cryptocurrency for other digital currencies, or for fiat money – GBP, USD etc. However, it is important to find an exchange that works for you and provides you with the insight you need to monitor, trade and buy your crypto. I use an exchange called Binance, to me the decision to use what exchange is based on security and the amount of coins available. Thus removing the need for multiple apps to keep control of your investments. I’m keen to see what Blockbid offer on launch, as they provide an ultra-secure, trading platform that has cyber security insurance, giving further security to the user.

Similarly, to finding your exchange, finding your desired cryptocurrency is entirely up to each individual. Often, consumers like to take their first tentative steps in to the crypto market by purchasing a currency they have no doubt heard of before, such as Bitcoin or Ethereum. However, it is key to do you research and know what ICOs (Initial Coin Offering)are happening and whether the project is viable – if it’s not, then it’s not worth your money as you could end up with nothing. This is where we need to be mindful of crypto-scams.

There is no clear indicator for when a project or coin might be a scam but there are a few red flags to be mindful of. Any reputable ICO project will have a detailed whitepaper document which details everything you need to know about the campaign. If this is not readily available then you should ask yourself why. To this effect, it is once more where research becomes a great tool. Look in to who the team is behind the project, what is their experience and what are they hoping to achieve. Scams and crypto thefts are increasing and are becoming more widely documented, and so we are seeing crypto exchanges beginning to form self-regulating tightening their regulations

That said, there are of course benefits to investing in cryptocurrency. Unlike fiat money (your regular currencies such as USD, GBP, Yen etc.), cryptocurrencies are not regulated by a bank, governing body or financial authority. Instead, cryptocurrency relies on the power of the internet to guarantee its value and confirm transactions. Cryptocurrencies tend to have a lower inflation risk meaning there is less chance of the currency collapsing.

The key with all cryptocurrency and crypto investing is to do your research. Ensure you know the company behind the currency and that it is a legitimate means of making money, and not a get-rich-quick money making scheme.

 

By Laurence Bray, Director of Stature PR & CMO at Searched

Back
Share this article:

LIKE WHAT YOU SEE?

CONTACT US

office

STATURE PR

7 BELL YARD

LONDON

WC2A 2JR

020 7100 0850