If you’ve been following the news in the last six months, aside from the news of Covid, you may have seen articles relating to the explosion of interest in cryptocurrencies such as Bitcoin and Ethereum. For some, these cryptocurrencies are considered a great investment for quick returns, while for others, they serve as a philosophically innovative means of controlling currency in a totally unregulated manner, enhancing privacy, and taking back control from the federal system.
We’re not going to tackle those intensive topics in this post, because newcomers can get vastly overwhelmed by this at best, and at worse, make a bad investment. For this reason, it’s a good idea to start with the basics and think about what you should know about this burgeoning new technology as a beginner.
This way, you can decide which approach is more interesting to you, and how you might even begin diversifying your investments, building a crypto portfolio, or just keep up with the news as an interested and impartial observer. With that in mind, let’s get started:
There Are More Coins Than Bitcoin
You may have heard of Bitcoin and Ethereum, which are two of the most popular coins out there with differing valuations on the market. It’s also true that others coins, such as Meme Coins, have risen to prominence, and are a good place to invest in some circumstances. The most popular of these is far and above Doge Coin, which has even had backing by Elon Musk. Each coin will have its own philosophy – sometimes just to be humorous, and so it’s worth thinking more open-mindedly about what kind of coin you hope to invest in, and what its staying power could be.
Be Mindful of Influencers
Influencers have managed to take cryptocurrencies and use them as advisory get-rich-quick schemes, teaching their followers to invest in a coin pursuant to a range of pump and dump scams that are now starting to make people question exactly who they should put their faith in. When it comes to investing in crypto, it’s important you remain mindful of influencers and truly vet everything they say, or don’t listen to advice unless you can independently verify their valuation claims. Be cautious and careful.
Learn What the Blockchain Is
The blockchain is what helps cryptocurrencies thrive, although depending on the coin you use the architecture of this necessary backend may differ, as well as its name. Blockchain technology serves as something of a digital ledger, recording digital transactions in a means that is totally run by the people who use it, which is different to the standard top-down SQL database type. This way, transactions can be verified, leading to the necessary peer-to-peer security and trust that helps cryptocurrency thrive in its anonymous and yet totally verifiable nature. You can also read more about the blockchain here.
With this advice, you’re sure to step forward into the world of crypto feeling a little more competent and capable of stepping out and making your first investments in that space.