Investing in crypto doesn’t have to be a mystery – get started with the basics and discover new financial possibilities!

WHAT ARE THEY?

Cryptocurrencies are digital or virtual currencies. At its core, crypto is a form of currency that is entirely digital, with no physical bills or coins. Some well known crypto currencies are Bitcoin, Ethereum, XRP, XLM.

It uses blockchain technology to facilitate secure peer-to-peer transactions and record those transactions in a public, distributed ledger, creating a form of digital cash.

HOW SAFE IS CRYPTO?

Crypto currencies use an extremely secure method of recording and authorising transactions. Every crypto transaction is recorded on thousands of computers throughout the world. There is no one centre – it is decentralised. Each record of the transaction is checked against the other to verify that it is valid and not fraudulent.

Crypto transactions involve no third-party intermediaries, such as banks or credit card companies. Instead, users store their cryptocurrency in a digital wallet. To make a purchase, one simply has to transfer the desired amount from their wallet to the recipient’s wallet.

HOW UNSAFE IS CRYPTO?

Despite the inherent safety of blockchain technology and direct crypto transfers, human error remains the greatest risk. To ensure your digital funds are secure, you will require a key – essentially a secure password. However, if someone obtains your password or key, they could potentially access your crypto funds.

IS CRYPTO THE FUTURE?

Cryptocurrency has had its fair share of ups and downs since its introduction in 2009, when Bitcoin first emerged on the scene. As such, it has proven to be difficult to gauge its future direction, given the lack of available historic data. Yet, even in its infancy, it has already shown impressive gains – soaring to an all-time high of $60k USD in April 2021, only to be cut by two thirds in November 2022 to $16441.

HOW DO YOU INVEST IN CRYPTO

In order to begin investing in cryptocurrency, you will need to register with a crypto exchange platform. Examples of exchanges include Coinbase, Crypto.com, and Etoro.

Every exchange offers a tutorial for beginners to show how to add funds, buy crypto, and sell crypto. Your crypto can be kept on the platform for convenience or if you are intending to trade. Alternatively it can transferred to a digital wallet where you can spend it. An exchange usually offers a hot wallet which is online. The more secure alternative is a cold wallet that is stored offline in a USB for example – but take care not to lose it.