Crypto 101: Everything You Need To Know Before Investing

Crypto 101: Everything You Need To Know Before Investing

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๐Ÿ•’ 10:49 AM

๐Ÿ“… Jul 27, 2025

โœ๏ธ By alaminlive

The world of cryptocurrency can seem overwhelming at first โ€” new terms, fast-moving markets, and lots of hype. But donโ€™t worry. If youโ€™re just getting started, this guide will help you build a solid foundation before putting any money in.

1. What Is Cryptocurrency? 

Cryptocurrency is a digital currency that uses cryptography to secure transactions. It operates on decentralized networks like blockchains, which are public, transparent ledgers.

Examples: Bitcoin (BTC), Ethereum (ETH), Solana (SOL)

2. How It Works 

Crypto transactions are peer-to-peer and verified by miners or validators. No banks involved. Everything is tracked on a blockchain โ€” secure, fast, and global.

3. Why People Invest in Crypto 

Potential for high returns 

24/7 markets (unlike stocks) 

Access to decentralized finance (DeFi) 

Store of value & financial freedom

4. Risks to Know 

High volatility 

Scams and rug pulls 

Regulatory uncertainty 

- Losing access to your wallet = lost funds

5. Before You Invest 

โœ… Research the project (team, use case, tokenomics)
โœ… Use trusted wallets & exchanges 
โœ… Start small, only invest what you can afford to lose 
โœ… Diversify your portfolio

6. Helpful Tools to Start 

Wallets: MetaMask, Trust Wallet 

Exchanges: Binance, Coinbase 

Trackers: CoinMarketCap, CoinGecko 

Learn: YouTube, Twitter, Reddit, Telegram

Final Tip: 
Start slow. Donโ€™t chase hype. Learn before you earn.