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Cryptocurrency 101: The basics you need to know

Venture into the world of cryptocurrency and get to know its unique features and the numerous investment opportunities it offers. Before diving into the industry, read through this cryptocurrency for beginners and expand your knowledge on the fundamentals of crypto.

How cryptocurrency works

Cryptocurrencies are virtual currencies in the form of tokens or coins based on blockchain technology. These coins are not issued or controlled by a central authority, which makes them free from government interference.

Moreover, crypto transactions are recorded in a public ledger called blockchain, powered by a network of computers. Each transaction is secured by cryptography that involves the use of a public address, public key and private key.

The first cryptocurrency to successfully execute transactions using blockchain technology is Bitcoin. It was introduced by a pseudonymous developer known as Satoshi Nakamoto in 2009. Since then, many cryptocurrencies have emerged in the market.

To begin your journey in the crypto world, you must know how to obtain crypto coins. One way to do this is through mining. By solving cryptographic equations using computers, you can acquire an incentive in the form of digital coins. You can also buy from exchanges like Coinbase and Binance or broker sites like Swissquote and eToro.

Make sure to check the market cap to help you make a decision when buying or selling digital assets online. It refers to the coins’ total value in the crypto market and helps you monitor which coins are performing well and which are dropping out of the ranks.

Now that you know the basics of crypto, find out how to use your coins through this cryptocurrency for dummies.

How to invest in cryptocurrency

Choose the cryptocurrency you want to use

There are numerous cryptocurrencies available in the market, each with its unique features. Although the concept of cryptocurrency has only been around for about a decade, a great number of coins and tokens have already been introduced to the crypto world.

You can look up the history of the different cryptocurrencies and see how well they perform in the market. Take note of their peaks and large drops that can indicate they won’t do well in the future. Look for those that show stability since this can signify potential success.

Find a reliable platform and wallet

A crypto exchange is a platform that allows traders to store, buy and sell cryptocurrencies. In some exchanges, you can trade fiat currencies for crypto coins while others only allow users to trade between digital currencies. Some of the most popular crypto exchanges are Coinbase, Binance and Cash App.

On the other hand, the main purpose of a crypto wallet is to safely store your coins and access them easily whenever needed. With a crypto wallet, you have complete control of your private key so you can guarantee that your assets remain secure.

There are different types of wallets available such as a hot wallet which can be accessed through the internet or a cold wallet which comes in the form of a hardware device. Some of the most reliable wallets you can use are Ledger Nano S, Trezor One, Gemini and BlockFi.

Manage your portfolio

Experts suggest investing in more than one crypto asset to avoid significant losses when the cryptocurrency sees a drop in the market. It is also better to include one or more stable coins in your portfolio.

Stablecoins refer to cryptocurrencies whose value is pegged to a specific currency such as the US dollar or the price of gold. These provide stability and minimise the volatility of the crypto market.

Tips to keep your crypto coins secure

Use reliable platforms

You can ensure the safety of your crypto by using only trusted platforms when making transactions. It’s better to use exchanges that have received positive feedback from the crypto community. Avoid exploring unfamiliar platforms and sites because many hackers often use these to infiltrate your device with malware.

Opt for a hardware wallet

If you plan to store your assets for the long term, you can use hardware wallets as these provide more security from computer vulnerabilities. You will be more at ease knowing that your assets are safe and that you’re the only one who can access them.

Be smart in investing

The cryptocurrency market is highly volatile, in which crypto prices are determined by the supply and demand of the currency at a specific time. When investing in cryptocurrency, it is best to make your purchase when the prices are low and wait for them to rise before selling your coins.

You can also consider investing in the mainstream coins available in the market such as Bitcoin, Ethereum and Ripple. Explore the crypto community and join various chat rooms with crypto experts to remain up-to-date with the latest trends in the market.

Top cryptocurrencies by market cap

Complete your knowledge of crypto by exploring these popular digital coins. This guide on cryptocurrency for beginners shows you the unique features of each asset.


Invented by Satoshi Nakamoto, Bitcoin (BTC) is one of the leading cryptocurrencies in the industry. It has the highest price, volume and market capitalisation among all the digital assets. Due to its popularity and success, many businesses such as Amazon, PayPal and Starbucks have adopted Bitcoin as one of their modes of payment.


Following Bitcoin as the most successful digital currency is Ether (ETH), the native cryptocurrency of the Ethereum network. It powers the Ethereum blockchain, which is a decentralised and open-source network where developers can create their own digital currencies.

Similar to other cryptocurrencies, ether is a medium of exchange but its main function is to facilitate the transactions in the Ethereum network.

Binance coin

Binance coin (BNB) is used in trading digital assets as well as pay for fees in the Binance exchange. In its early years, Binance coin ran on the Ethereum blockchain but has since moved to its own blockchain called the Binance Chain.

BNB reached its peak in 2017 and has consistently stayed in the top ranks of the market. This proves that this coin poses stability and fewer risks in investment.


Ripple is a currency exchange, remittance system and patent settling that offers international transactions. Its native coin is called XRP and is used in making transactions with exchanges, banks and other financial institutions.

Unlike most cryptocurrencies that rely on miners in verifying transactions, Ripple utilises the Ripple Protocol consensus algorithm (RPCA) on their platform.


Tether (USDT) is pegged to the US dollar which makes it one of the most stable cryptocurrencies. It hedges against the volatility of the crypto market and provides less risk in investment as compared to other digital assets.

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