Getting into crypto can be exciting but also overwhelming. Here are some key things to know as a beginner:
1. Understand the Basics
Cryptocurrency is a digital asset that uses cryptography for security.
Blockchain is the technology behind crypto, a decentralized ledger that takes records of transactions.
Bitcoin (BTC) was the first cryptocurrency, and many others (altcoins) have since been created.
2. Security is Everything
Use a secure wallet: Hardware wallets (e.g, Ledger, Trezor) are safer than online wallets.
Never share your private keys: This is like your bank password whoever has it can access your funds.
Guard your password with your life like your breath depends on it.
Beware of scams: Avoid "too good to be true" schemes, fake giveaways, and phishing attempts.
There are lots of schemes out there waiting for newbies like you and me also avoid unsafe links.
3. Do Your Own Research (DYOR)
Don't blindly follow advice from influencers or random people online.
Learn about different projects, their use cases, and the teams behind them.
4. Exchanges & Trading
Centralized Exchanges (CEX): Binance, Coinbase, Kraken (easier but require ID verification). Some don't require heavy verification.
Decentralized Exchanges (DEX): Uniswap, PancakeSwap (no middlemen but requires more knowledge).
Always withdraw to your wallet if you're holding long-term to avoid exchange hacks.
5. Volatility is High
Prices can swing wildly in minutes. Never invest more than you can afford to lose.
Dollar-cost averaging (DCA) can help reduce risk.
6. Types of Cryptocurrencies
Bitcoin (BTC): Digital gold, the most stable.
Ethereum (ETH): Smart contracts and decentralized apps (DeFi, NFTs).
Altcoins: Projects with specific use cases (Solana, Chainlink, etc.).
Stablecoins: Pegged to fiat (USDT, USDC) to reduce volatility.
7. Decentralized Finance (DeFi) & NFTs
DeFi allows lending, borrowing, and earning interest without banks.
NFTs (non-fungible tokens) represent unique digital ownership (art, gaming, etc.).
8. Regulations & Taxes
Crypto is subject to different laws depending on your country.
Trading and selling crypto may have tax implications.
9. Common Mistakes to Avoid
Investing without research: FOMO (fear of missing out) can lead to bad decisions, most of the time new users get into this category because you don't want to miss the next Bitcoin
Leaving funds on exchanges: If the exchange is hacked or shuts down, you could lose your money.
Using weak passwords: Use strong passwords and enable 2FA.
