Crypthena Original

Cryptocurrency starter guide

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Crypthena Original

Cryptocurrency starter guide

Welcome to the Crypthena Cryptocurrency Starter Guide. The purpose of this guide is to give you a pathway into the world of Cryptocurrency. Pour yourself some coffee, sit back and relax while we walk you through the first 7 doors.

Welcome to the Crypthena Cryptocurrency Starter Guide. The purpose of this guide is to give you a pathway into the world of Cryptocurrency. Pour yourself some coffee, sit back and relax while we walk you through the first 7 doors.

everything you need to know

7 STEPS to success

1

Understanding the Basics

”I cant really explain it but this is the technology of the future.. or Cryptocurrency is a bubble waiting to pop.”. We have all seen similar phrases before and people have been doubtfull about technology for decades, in 1995 they didnt believe in the Internet and called it a bubble, and we are seeing the same thing happening today with Cryptocurrency. This guide is written to cut right through the smoke.  Let’s start with answering some basic questions and work our way down. 

What are Cryptocurrency ?

Cryptocurrency is another word for virtual currency, or if you would want a simpler definition it would be something along the lines of: virtual tokens that represent value. So why are we excited about it ? And what is that Bitcoin that everybody keeps talking about ? Well if you want a deep dive into why we are excited about Cryptocurrency; we  recommend you reading our detailled article; right here. For this guide we will keep it simple. The next time someone asks you what is Bitcoin? or Cryptocurrency? You can tell them the following: 

”Bitcoin is an online currency that can be sent and received by anyone in the world, relying on computers to control the transfer and creation of money without human intervention, which results in low costs, no government corruption, and super-fast transfer.” 

what are ico's / Initial Coin Offerings ?

An Initial Coin Offering (ICO) is a means of crowdfunding the release of a new cryptocurrency. Generally, tokens for the new cryptocurrency are sold to raise money for technical development before the cryptocurrency is released. Unlike an initial public offering (IPO), acquisition of the tokens does not grant ownership in the company developing the new cryptocurrency. And unlike an IPO, there is little or no government regulation of an ICO. 

Now you might want more than just the definition of an ICO. If so we highly recommend reading our article about  ”What is an ICO”; right here

The underlying Technology — Blockchain

What if I told you I could explain blockchain in one easy-to-understand sentence — as well as give you a more thorough, yet still simplistic, view of how it works and how it can benefit various industries? Sound too good to be true? Lets give it a shot.

Here’s what blockchain is all about, in one sentence:

It’s a brand-new way of transmitting money without the need for traditional banking networks, as well as a means to store data in a transparent and unalterable way.

This is a relatively simple sentence, but there’s a lot going on, so if you want the more detailled version, we recommend reading our article ”The Blockchain – Easily explained.” You can find it right here.

Why is there A demand for cryptocurrency ?

So why use Cryptocurrency when you can just use Euro, Dollar or any other currency ? Well one of the main reasons is around 1.7 Billion adults worldwide still don’t have acces to a bank account, according to data released by the World Bank. Now that is a lot of people and to be quite frank, they are getting acces to the internet faster than they are getting acces to a bank account. Cryptocurrency is the way to enter the global markets. 

It's strengths & weaknesses

Lets sum up some key aspects Cryptocurrency brings the table: 

Strengths:

  • Easy Acces; Cryptocurrency is readily available to the general public. Almost anyone can make use of it.
  • Quick and easy payments; Making payments using Cryptocurrency is very easy. You can do it in just a matter of seconds. It is very fast because you dont require many details, you dont even need to enter you credit/debit card details. All you need is the wallet address of the person or enterprise you want to pay. 
  • Lower fees; We have all seen the hefty fees credit card companies charge us to do our payments. The costs of Cryptocurrency are very minimal and only the buyer gets hit with it. Transactions fees are also miniscule.
  • No third party; There is no bank or government involved. You are the master of your money. 
  • Private;  You don’t need to share your identity, whereabouts or the details of the transactions made between you and the beneficiary. No information is required to share with the government or bank regarding the deal. 
  • Facilitate International trades; When you talk about transactions using Cryptocurrencies there are no limits. You may be on the other side of the hemisphere and still be able to transfer money without any problems. This makes it very easy for users to transact without having levies imposed or have their value reduced by exchange rates. 

Weaknesses:

  • Difficult to understand; Cryptocurrencies are relatively new and come with a learning curve. 
  • Not accepted widely; Not many websites and companies accept digital currencies yet. We are seeing some adoption but we still have a long way ahead of us. 
  • No way to reverse payments; If you mistakenly pay someone by using Cryptocurrency, then there is no way to get a refund of the amount paid. All you can do is ask the person for a refund. 
  • Uncertainty & Volatility; Since Cryptocurrencies are so new, they are also very volatile. In other words we are still seeing huge swings in value and many corporations dont want to deal with a form of money that has such highs and lows. 
  • Scaling; Based on the way smart contracts are designed, there is a limit to speed and number of transactions it can process at a time. However there are already ways that scaling should be able to work, this is still one of the main concern a lot of technical people have with Cryptocurrencies. 
Is it LEgal ?

One of the concerns a lot of people have when thinking about investing in Cryptocurrency are the legal issues. Well to address that concern, we best direct you to the following website:”https://www.finder.com.au/global-cryptocurrency-regulations.” Finder provides descriptions on the legal standings of most of the countries in the world.

Relevant Categories

Courses

Watch one of the many courses to get up to speed quickly.

2

creating a strategy

By now we understand the basics of Cryptocurrency. So lets talk about some investment strategy, there are two basic strategies that can help you reduce risk. Diversification and dollar-cost averaging. 

Diversification means avoid placing all your investment eggs in one basket. Investment experts say it is smarter to invest in a number of different investments. You want to have your money in different kinds of investments, so that if anything happens to any one of them, it won’t be a disaster. Being diversified across all sorts of Cryptocurrency coins may help reduce the risk in your investments. 

Investing gradually rather than all at once, that is, not putting all your money in the Cryptocurrency market in one shot, has certain advantages. The strategy of systematically investing a fixed dollar amount over time is called dollar-cost averaging. For example, if you have $1,200 to shift into a new investment, you would invest $100 per month instead of shifting the whole $1,200 at the beginning of the year. The benefit of dollar-cost averaging is that it reduces the risk of buying Crytpocurrency coins at the wrong time. The theory is that you buy fewer coins when the price per share is higher and more coins when the price per coin is lower. Dollar-cost averaging may work in your favor because the average price per coin that you end up purchasing is typically lower. Now this second strategy might be tricky with Cryptocurrency because they can be so volatile, keep in mind that we are still in a very early market and we have a lot of maturing to do. 

A good trading strategy is personalized and not everything works for everybody, however we have noticed one thing most good traders have in common, they do their research and they do it thoroughly. We strongly recommend to get out there and start reading all sorts of Crypto related articles. Watch the best Cryptocurrency Youtubers. Listen to the most influential people in the Cryptocurrency world on your way home from work or pay the experts to give you detailled research to base your investments on. 

 

Relevant Categories

Youtube Influencers

Discover the most educational and fun crypto Youtubers.

Facebook Groups

Join other investors in some of the largest Facebook groups.

Podcasts

Listen to some of the very best crypto related podcasts.

3

buying cryptocurrency

Coming to step 3; Buying Cryptocurrency. If you have made it this far, well done, you are one step away from making your first trade! Exciting times so let me get on with it. One of the first things we need to establish is a Bitcoin wallet. It functions just like a normal wallet where you would keep your money in only this one is digital. Wallets range in terms of features, platforms they can be used on, and security, so it’s important to choose one that works for you. 

To get you started your best bet is to use one that is automaticly provided by the broker where you buy your Bitcoin, such as Coinbase. This allows you to buy Bitcoin and store it automaticly in the by them provided Wallet. However it is always a good idear to store your Bitcoin into multiple wallets to keep them safe. If Coinbase were to go down, you wouldnt go bankrupt. We advise you to check out our Wallet category and find one that fits your needs. Again if you are just starting out we would recommend using Coinbase. 

Once you have selected a Bitcoin wallet, we can get to actually buying Bitcoin. Now there are a lot of different places you can buy Bitcoin from, not all are as trustworthy as others. We would recommend buying it from Coinbase as it is one of the easiest option but its never bad to check out the competition. You can check out all our Bitcoin brokers in the ”Brokers” Category on our website. If you have succesfully purchased your Bitcoin from any of the Brokers, make sure to leave a comment behind on our detail pages, so other users can benefit from your experience. 

If everything went according to plan, you have now succesfully bought Bitcoin. If not please dont hesistate to contact us or our community to ask for help. Last but not least we want to notify you of the ability to Earn Free Crypto. Now Bitcoin is expensive and its definetly not in everybody’s budget to be buying Bitcoin, hence the introduction to earning free Cryptocurrency sites. Those sites allow you to earn Cryptocurrency or Bitcoin for doing basic tasks like sharing an article on social media. 

Relevant Categories

Brokers

Buy & sell cryptocurrencies for traditional fiat currency.

Wallets

Send, receive or hold your crypto in one of the many wallets.

Earn Free Crypto

Complete simple online tasks to earn free cryptocurrency!

4

making your first trade

Are you ready to become a Cryptocurrency Trader ? Well you sure check all the boxes, so why not try at it. By now we managed to understand what Bitcoin is, we got ourselves a Bitcoin wallet to keep our digital Cryptocurrencies safe and we already invested into Bitcoin. So how do we become an active Cryptocurrency trader ? Well the first thing you need to know is that besides Bitcoin there are thousands of other different Cryptocurrencies out there, and you can invest in ALL of them. That’s right, all those other coins are virtual currencies but represent something different than Bitcoin does. They mostly represent a form of technology or a company. Now if you believe in the companies vision or the technology behind that particular coin, it might be a solid investment. One of the ways to understand the coins and find out what is behind them is by checking them out in comprehensive coin lists. If you click on the category card ”Coin lists” down below it will redirect you to a list of websites that provide detailled information about every Cryptocurrency coin out there. 

So lets assume you checked out a coin list and have some coins in mind that you found interesting enough to invest in. The next step would be for us to find a Cryptocurrency exchange to trade Bitcoin against other Coins. Your best bet would be to go with Binance for your first exchange as it is one of simpler ones to trade on. If you go to our Binance detail pages, there is youtube video on how to trade on Binance. This will give you a step by step introduction to making your first trade. However dont be afraid to check out the competition in the category lists down below. Each exchange has a short introductionary video. 

 

Relevant Categories

Exchanges

Trade your cryptocurrencies against other digital assets.

Coin Lists

Find thousands of digital currencies and their current prices.

5

exploring the cryptospace

Congratulations, if you followed this guide step by step you have now made your first trade and are an recognized member of the Cryptocurrency community. If you havent followed this guide, you are ofcourse still very welcome in our community. Now lets talk a bit about this Cryptocurrency community and the world that lies behind it. We have the active day traders, the long-term HODLERS (Holding on to dear life) and so many more people that play an active role in this world. Earlier we talked about trading and now we would like to introduce you to our ”Automatic Trading” category. This category is made out of the best Cryptocurrency Trading Bots that are up and running today. We know, it sounds dodgy but the bots actually do work, even if its not for you, it still is very interesting to learn about the effect Artificial Intelligence is having on our trading markets. We think its definetly one of the things worth exploring when you are entering the Crypto space. 

Next up we have Cryptocurrency Mining, as you might have learned into our Blog post ”What is Cryptocurrency.”, you know Bitcoin gets mined as do other Cryptocurrencies. Now this is an whole other end of the spectra. We have seen amazing Cloud Mining services but also incredible home build Crypto Mining caves. Certainly a category to dive into if you want to make yourself more familiar with everything Crypto. 

Relevant Categories

ICO's

Initial Coin Offerings (ICO’s) are all the craze. Find them here!

Automatic Trading

No time to trade cryptocurrency? Let AI handle it for you!

dApp Lists

Explore the decentralized applications built on blockchains.

Mining

A full overview of all the things you will need to start mining.

6

finalizing your toolbox

We have touched on it before and we will touch on it again. Research is the key to any good investment and there is no better way to gain more knowledge than by sharing it with others as they share it with you. Check out our extensive Telegram Channel list and become a member of a well known Cryptocurrency community today. Every Telegram Channel has its own features and content but most of them go over the latest news. One of the ways to stay up to date is to visit one or multiple Cryptocurrency news websites daily. Now we dont want to ”sell” you any of these categories but we do think its important for us to briefly touch on. 

Telegram Channels as mentioned above are the most used platform for anything Cryptocurrency. There are thousands of Cryptocurrency Groups out there and it surely is beneficial to enter one. Visiting news sites to stay up to date on the lateste Cryptocurrency news pretty much speaks for itself. Just as you would do when you are investing in normal stocks or bonds, its good to stay up to date. One other tool we would like to present to you is the ”Token Event Calendar”. This list provides you with the best Token Event Calendar websites and they in turn notify you of any important dates considering your investments. For example one of your investments is rebranding and you dont know the exact date of the rebranding. These Calendars will keep track of those dates. 

Last but not least we want to introduce you to ICO pools. One of the more unknown categories to new investors. This category allows you to join in with others while investing in ICO’s, and this can result into gaining hefty bonusses or discounts on token sales. Its obviously much better for an ICO to know that an large investment is coming from a respected group than to ”gamble” on their token sale to go as expected. These deals normally happen before the main sale takes place. Remember to invest with caution. 

Relevant Categories

News Sites

Stay up to date on the latest news from the cryptosphere.

Telegram Channels

Improve your trading by following the top Telegram channels.

Token Event Calendars

A simple agenda for all the upcoming token events and news.

ICO Pools

Get the best deals by joining collective ICO investment pools.

7

leaving the nest

It is has been a pleasure writing this guide and I would like to say to you:”You are more ready than ever to invest in Cryptocurrency.”. Make sure to track your investments with some of the best Portfolio Trackers. As a starting Portfolio Tracker we would recommend Blockfolio or Delta, which you can easily install on your phone. If you ever want to track you transactions or look at someones wallet addres you can check it on one of the Blockchain Explorers. They allow you to track you transactions at any time and see into every wallet. 

If you have any querries considering this guide please come talk to us in our Telegram Channel (@Crypthena). We are delighted to help you start up or answer any other questions. 

Relevant Categories

Portfolio Trackers

Easily keep and eye on your investment and it’s performance.

Blockchain Explorers

Search for transactions & wallets in the blockchain explorers.

before you go

a few last words

We hope you enjoyed reading this guide as much as we enjoyed writing it. Make sure to leave your comments behind on our Forum or in the review section of the detail pages. This guide is constantly being updated so we can continue to help people enter the world of Cryptocurrency. 

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