The crypto world is a big thing, and if you think you have seen it all, you are wrong. It is about to get even bigger. In 2013, there were only 66 cryptocurrencies, but the numbers have blasted through the roof, hitting over 6,000 in January 2022. Now, more people, including governments, central banks, and top financial platforms, are supporting cryptocurrencies. By the close of 2021, the confidence in cryptos rose to 97%.
These numbers are only a scratch on the surface of the unfolding potential that is the world of cryptos. If you bought one Bitcoin around 2009-2010, when the value was around one dollar, and held it to the start of 2022, you would have enjoyed a growth of more than US$40,000. Now, what if you had bought 100 or 1000?
These numbers indicate one thing: if you are not yet into cryptos, it is time to join. But many are those who ask, and correctly so, “where exactly do I start?” You do not need to worry anymore because we are here to offer the solution.
A Brief about Cryptocurrencies
If you are entirely new to cryptocurrencies, the first step is to understand how they operate. A cryptocurrency, such as Bitcoin (BTC) or Ethereum (ETH), is a digital coin that only resides in its blockchain network. This means that you should not get deceived by the lovely images of Bitcoin coins all over the digital media. In reality, the coins only exist as a string of codes, which signify the number you hold in the respective network.
So, if you buy, say, five Bitcoins, what you get is a string of codes that you should use to send or make other transactions. Although some coins only allow users to deal with full coins, most of them, such as Bitcoin, can be broken down into smaller denominations. For example, the smallest unit of a Bitcoin is Satoshi, which is equivalent to 0.00000001BTC. Other common crypto coins out there include:
- Ethereum (ETH)
- Cardano (ADA)
- Dogecoin (DOGE)
- Polygon (MATIC)
- Solana (SOL)
How to Get Started with Cryptos
Now that you know what cryptocurrencies are, it is time to get down into the niche. So, here are the steps to follow.
- Decide to Get into Cryptos
Having entered the mainstream market in 2009, cryptocurrencies are relatively new. Therefore, making the decision to join can be a big thing for many people. However, this is a decision that you are likely to reap awesomely from in the coming months or years. So, you need to factor it into your lifestyle. Consider it as a way of growing your financial portfolio and lifestyle.
Another important thing you need to consider is preparing an appropriate budget. For example, you might want to start by purchasing only a few coins to get a feel of owning them. You might also want to follow top crypto experts or platforms like hi.com to learn more about cryptos.
- Get an Appropriate Crypto Wallet
Once you have made the decision to buy cryptos and set aside an appropriate budget, you need one more thing: a crypto wallet. This is a device, service, or location where your crypto coins will be stored. As we indicated already, crypto coins only exist as a string of codes, and the wallet you select helps to store and facilitate their exchange. Common types of wallets that you can use include hot (online) wallets, offline wallets, and desktop wallets.
- Look for Ways to Multiply Your Coins
Buying your coins is only the first step, and a great stride, we must say, but you need to take the next one. So, what can you do with the coins? Just like fiat currencies, there are so many things that you can do, from using them to do shopping to holding them waiting for the price to grow. Here are some unique methods that you can use the coins:
- Staking: This is locking your proof of stake (POS) coins to their networks to help with confirmation of transactions and securing the network. In return, you are rewarded for the task. Remember that you are not selling the coins, and they will be returned to your wallet after the expiry of the staking session.
- Crypto loans: Instead of going to a bank to take a loan, you can use crypto coins to secure the funds faster. Here, you only commit your coins as collateral to get the loan. No background checks, such as a review of your credit score, are done.
This post has presented the roadmap for you to get into the crypto world easily. We must also indicate that the crypto world can be pretty risky because of high volatility and interest from hackers. To get it right on cryptos, pick the best coins, and avoid different risks, make sure to have a professional on your side. Visit hi.com to send, save, earn, and convert your cryptos.