July 18, 2018
Work supplies scattered across a table.

Cryptocurrency has become a household term in recent years. Bitcoin billionaires are popping up everywhere, and lots of curious consumers are wondering how they, too, can hop on the bandwagon of crypto trading, buying, and selling. If you’ve ever been interested in trading cryptocurrency, here’s what you need to know:


1. Buy Some Currency at Coinbase

Pick a currency you like and purchase some with government currency (USD, EUR, GBP, etc.). Bitcoin is a pretty safe bet, but Coinbase offers BTC, ETH, and LTC are for anyone who wants to branch out.


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2. Start in Easy Mode

If you’re totally new to crypto trading, start in Easy Mode. Easy Mode is a great place to get started watching graphs, finding good trading prices, and understanding when to sell. While it can be tempting to skip right pasty Easy Mode, it’s critical to learn how everything works and be more successful as you move forward with your trading.


3. Stick With Prominent Coins for a Bit

As you make your way into crypto for the first time, stick with prominent coins like Bitcoin and Ethereum to begin. These are somewhat more stable, although it could change in the future.


What to Know Before You Begin Trading

New to the world of cryptocurrency? Here are a few things to know before you begin trading:

Crypto exchanges aren’t part of the normal stock exchange. Coinbase is the most popular, but GDAX is another common version, without the high fees. Neither operates alongside Wall Street and its exchanges, although they share the same general mechanics.

Cryptocurrency stocks are also an option. Cryptocurrency stocks exist on the stock market and allow you to get into the crypto game without dealing directly with currency.

The crypto market is incredibly volatile. Even if you make a fortune with crypto, it’s easy to lose it in a heartbeat. Keep this in mind as you venture into selling and trading crypto.

There are tax implications to crypto. If you’re going to trade crypto, you need to understand the tax implications. If you don’t, it’s easy to fall into a nasty trap and wind up with a severe case of sticker shock.

Beginners should always start by choosing a company with a good reputation. As a general rule, the company should offer both a wallet and an exchange, since it keeps the process simple.

Crypto mining is not the same thing as trading. One way to invest in crypto is through cryptocurrency mining. While mining includes more complexities than straight investing, it can be a nice way to invest a small sum of money and make back some of the cost of a mining rig.

Only invest what you can afford to lose. Again, the crypto market is volatile and you don’t want to overextend yourself.


When to Exit a Crypto Trade

As a general rule, you don’t want to participate in margin trading unless you’re an experienced trader. Because crypto is so volatile, you could lose all your money in a matter of moments. If you come across a margin trade, it’s generally a good time to exit the process.

A gold Bitcoin pictured in front of a computer screen.

Cryptocurrency has sprung up as a household term in recent years.

A decentralized currency designed to make financial transactions secure, untraceable, and virtually impervious to hacking or manipulation, cryptocurrency is taking the world by storm.

It’s much more than just a way to pay for things, though. Here are just a few of the ways cryptocurrency is changing the world for the better.


[RELATED: Find out everything you need to know to get started in cryptocurrency!]


1. Crypto has Reduced the Risk of Fraud

Fraud is one of the largest concerns in the financial world. Luckily, cryptocurrency makes it much less likely. Because cryptocurrency is not associated with a bank account or any cash funds, it’s ultra-secure. The blockchain records all transactions, which reduces fraud and offers a sense of peace for users.

In addition to reducing fraud risks, crypto has also allowed people to take increased control of their money, which restores power to consumers and promotes new types of spending.


2. It Has Simplified Money Transfers

Wire and bank-to-bank money transfers can take a great deal of time to clear, which is frustrating for users. With blockchain and crypto, though, money transfers are instant and secure.

Because crypto doesn’t require the same compliance and checks as a bank-initiated transfer, they’re fee-free, secure, and easy to track and store.

When it comes to foreign transactions, blockchain and cryptocurrency stand to make the process less vulnerable to fraud, faster, and more secure.

What’s more, crypto means people no longer have to carry cash or cash cards when traveling in a foreign country, which reduces the risk of robbery and theft.


3. Cryptocurrency is a Stable Alternative to Unstable Currencies

Global currency is a notoriously unstable market, but blockchain and cryptocurrency can help. Because crypto is accepted worldwide and not vulnerable to the instability and inflation associated with standard currencies, it allows people a financial alternative that’s free of exchange and interest rate changes and is not as volatile as cash funds.


4. Cryptocurrency is Highly Scalable

Most companies spend a significant portion of their time searching for platforms or programs that can be built out for a specific product or service.

Scalability is a difficult pursuit, and traditional currencies have been notoriously bad at supporting it. Cryptocurrency, though, is built to scale, which makes it an obvious choice for fast-growing businesses.


5. Crypto Encourages Science

Cryptocurrency and blockchain make a powerful duo when taken together. Because crypto and blockchain help alter the scientific roadblocks faced by science professionals, they allow researchers to bypass issues like data lags, un-shareable information, and the monopoly held by major institutions. This, in turn, allows researchers to make important discoveries and keep driving knowledge and development forward.

This is as true in third-world countries as it is for the U.S. In fact, crypto has allowed third-world countries to enjoy hubs of innovation and discovery. Think of a Silicon Valley in India. Cryptocurrency and Blockchain make it possible.


The Future of Cryptocurrency

Cryptocurrency will only continue to become more popular in coming years. As the industry continues to evolve and change, and adoption rates rise, crypto will begin to have profound effects on a variety of new industries. It will also continue to infiltrate the individual consumer market, changing the way people purchase and pay for things, and interact with money as a whole.

Hands holding a wallet with a dollar bill inside.

Technology is affecting the way people do nearly everything these days–particularly the way they manage their money. There are digital currencies that take dollars out of your wallets and keep them stored in a drive or a cloud, like popular cryptocurrencies Bitcoin and Ethereum.

If you’re a person who uses Bitcoin to make financial transactions or you are interested in investing in cryptocurrencies, one of the smartest moves you can also make is to use a cryptocurrency wallet. A cryptocurrency wallet is designed for the particular purpose of managing cryptocurrency for safekeeping, and it’s the best choice for using your money and keeping it safe. Here’s why you should have a cryptocurrency wallet for your money today.


[RELATED: Learn about everything you need to know for getting started in cryptocurrency!]


What is a Cryptocurrency Wallet?

A cryptocurrency wallet is a type of software that stores information about your cryptocurrency, allowing you to interact with various blockchain and send or receive digital currency. A wallet doesn’t store actual currency, it stores both private and public keys that can interact with different blockchain. You can get an app-based crypto wallet, one that exists solely on the cloud, or one that’s stored on a desktop. You can also invest in a physical hardware wallet for your cryptocurrency.


Why Should I Be Using a Cryptocurrency Wallet?

Here are the four most important reasons you should be using a cryptocurrency wallet today:

They Give You More Control

If you don’t use a cryptocurrency wallet, your private and public keys are stored on an exchange. This means that you’re entrusting your keys to a third-party, which means that if they shut down, or they have a security issue, you run the risk of losing your currency. There is no regulatory body for the exchanges, so there’s no one overseeing what happens to make sure your currency stays safe.

They are Convenient

Cryptocurrency wallets are convenient for you to use. If you use an online cryptocurrency wallet, you can access it from any device that has an Internet connection. Simply log in to your wallet and send and receive from there.

They are Safe

Not only do cryptocurrency wallets give you more control over how your public and private keys are handled, they generally provide more security for your currency than if you did not keep them in a wallet. Hardware wallets are particularly safe because they’re not kept online and, in turn, not accessible by hackers.  


Why is Not Using a Cryptocurrency Wallet Naive?

If you choose not to use a cryptocurrency wallet, you’re making a naive decision that could put your currency at risk.

Most importantly, because there is no regulatory body of the exchanges, and they are hackable or reachable by outside security threats, if you leave the keys to your currency in the exchange, you expose it to a wide range of threats that could take it away.

Also, using cryptocurrency as a means of paying for goods or services should be convenient and easy. By using a cryptocurrency wallet, you can give yourself easy access to your currency when you need. If not, the process to access and exchange your currency can be more involved or a hassle, negating one of the reasons that cryptocurrencies were invented in the first place.


If you’re ready to invest in cryptocurrencies like Bitcoin, or you already have but you’re not keeping your money somewhere secure, it’s time to get a cryptocurrency wallet. Wallets can make using the currency easier than ever, while also ensuring that your money stays safe, so you can invest and spend with confidence.