Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
Reload Captcha

Beginners Guide To Cryptocurrency

Written by  May 06, 2020

Cryptocurrency has been around since 2009 and has grown in popularity ever since. But if you’re a beginner in the crypto industry it can be a little confusing.

Below are the most common questions that I've been asked, now is my opportunity to share with you what the answers that hopefully will help you on your way to being successful crypto trader.

What Is Cryptocurrency?

Cryptocurrency is a form of virtual currency that can be traded or exchanged for other goods. There’s a wide variety of cryptocurrencies out there; in fact, over 3,000 types of crypto exist. Some are more serious like Bitcoin (by far the most popular) while others are jokes that ended up being successful cryptocurrencies, like the Dogecoin or the Coinye.

Cryptocurrency was built around very complex mathematics and computer engineering which is why it can often be complicated to understand. While the code to create cryptocurrency was actually developed back in the ’80s, it didn’t actually get put to use until much later.

How Do You Purchase Crypto?

Cryptocurrency uses a blockchain that records and stores all crypto transactions. The blockchain is run by crypto miners, people who create cryptocurrency through more complex equations and computer systems. Usually, a cryptocurrency transaction only takes a few minutes to be completed. These transactions are kept extremely secure through codes created by the user that are very difficult to hack.

Purchasing cryptocurrency is as easy as buying something off of Amazon. All you need to do is choose a crypto platform, we recommend eToro as they are one of the biggest around and also offer stocks and shares trading. After that you can use your debit card to purchase and exchange cryptocurrency. If you really what to get to the bones of crypto trading with a full blown cryptocurrency trading account you can try Binance.

What Is Crypto Worth?

Think of cryptocurrency being like the stock market: its value goes up and down, depending on the day. Checking on the value of certain cryptocurrencies is an important step to take before committing to purchasing it. You want to ensure the specific crypto you’re investing in is stable.

But how can you know if a certain cryptocurrency is stable or not? Let’s take a quick dive into a very simple economics principle to explain that. When demand for something is higher, the price will be higher, but if the demand is lower, the price will be lower. So the more crypto that has been issued, the higher the price. And unlike normal currency (also known as fiat currency) which has an unlimited supply, cryptocurrency caps out at a certain point.

One other reason crypto worth can change is based on how useful it is. If one cryptocurrency is more accepted than others, then it’s value will increase significantly.

Also see: What is Bitcoin?

What Do You Do with Crypto?

When you go online shopping, you often see an option to pay with a credit card or PayPal. Now, some online retailers offer the option to pay with cryptocurrency. So if you’ve bought crypto and you’re wanting to do some shopping, that’s a great way to spend it. Most sites will have an icon of a cryptocurrency when you enter the shopping cart feature, which will indicate if they accept it or not. See our article How can you spend Cryptocurrency? for more information.

One of the most popular things people use cryptocurrency for is to build up an investment portfolio for themselves. Like we said before, the value of crypto can increase and decrease. By investing crypto, you have the potential to grow that investment even more and receive great gains from doing so.

Is It Worth Investing?

Cryptocurrency is becoming more widely used from country to country. It may not be a bad idea to start investing in it. Others have done it before and seen a positive outcome. The more you invest, the more likely the value of the currency will increase.

Do keep in mind that cryptocurrency is liable to be taxed in certain circumstances. For example, if you received any gains on your crypto, you’ll be taxed on that.

Overall, cryptocurrency is an interesting world to get into and it’s definitely worth a try!


Do you find this article useful? Comment below or follow us on Facebook or Twitter.

Carla Thompson

A very experienced freelance Crypto journalist who now prefers to work from home and has such a broad range of knowledge accrued over the years, we would not cope without her influence and ideas.

1 comment

  • Karen Smith
    Comment Link Karen Smith Thursday, 07 May 2020 13:15

    Really thorough and very helpful, thanks.

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Follow Us


Help and Advice

May 06, 2020

Beginners Guide To Cryptocurrency

Cryptocurrency has been around since 2009 and has grown in popularity ever since. But if you’re a beginner in the cryp...

Feb 10, 2020

Tips To Trade The Volatile Crypto Market

The expected economic impact of the coronavirus has resulted in crashing stock markets across all the globe. ...

May 08, 2020

What is Cryptojacking?

'Cryptojacking' is a term used to describe the action of secretly using a computer to mine cryptocurrency for profit. ...

May 26, 2020

Ways to invest in the cryptocurrency market

Bitcoins huge price movement back in 2017 attracted many investors who wanted to profit from the emergence of this new d...

May 11, 2020

What is an ICO?

An ICO stands for Initial Coin Offering, it is a method for teams to raise funds for a project in the cryptocurrency spa...

Jun 24, 2020

The difference between Bitcoin, Altcoins and Tokens

The cryptocurrency market is well established, but then there are new people discovering the benefits of crypto trading ...

Feb 20, 2020

How VPN Services Protect Your Data

Wherever you are, a virtual private network is still one of the best ways to secure your crypto data on the internet. ...

Jan 31, 2020

Tips on keep your mobile banking apps secure

If you are buying and selling cryptocurrency and need to fund your investments or withdraw your money, it always pays to...

Jan 13, 2020

Be wary of shoulder surfing

When you are trading in the office this is rarely a problem as you know your colleagues and you are in an enclosed envir...

May 11, 2020

How to protect your Gmail account

Technology is constantly changing and at a pace which is hard to keep up with, but 'safety first' always applies. ...

Apr 06, 2020

Every new crypto computer needs protecting

All those crypto files you’ve saved through the years that you can’t remember what they are? Goodbye, it wasn’t me...

Feb 07, 2020

Is 2 Factor Authentication Enough?

The technology and security controls in every example is different and therefore, the time, effort, and cost required to...

Jan 08, 2020

What you need to know about filing Crypto taxes in the UK

For some time, Governments across the world have been cracking down on crypto taxes.

Feb 21, 2020

Proton Mail: The Best Secure email Provider there is

Proton Mail offers a comprehensive level of security, while also locating its data centres ‘underneath 1000 meters of ...

Jan 15, 2020

How to secure your router from Cyber Attacks

Hackers nowadays are seen using routers as botnets to launch cyber attacks on large companies and organisations. ...

Feb 17, 2020

What is a Trojan?

As the name suggests, Backdoor Trojans are designed to grant an external user full control over a system by creating a b...