Crypto 101: Everything You Need To Know Before Investing
Go Back๐ 10:49 AM
๐ Jul 27, 2025
โ๏ธ By alaminlive
The world of cryptocurrency can seem overwhelming at first โ new terms, fast-moving markets, and lots of hype. But donโt worry. If youโre 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
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Research the project (team, use case, tokenomics)
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Use trusted wallets & exchanges
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Start small, only invest what you can afford to lose
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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. Donโt chase hype. Learn before you earn.