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If You're Thinking Of Joining The Crypto World, Here's 4 Things You Should Know To Get Started

If You're Thinking Of Joining The Crypto World, Here's 4 Things You Should Know To Get Started

A few tips and tricks of the trade before you open your very own digital wallet.

It’s no surprise cryptocurrency is truly taking over the world. Whether it’s how your friend bought their first house or you're swarmed by crypto chat at the latest dinner party, digital currency is becoming mainstream despite being relatively new. And just like all new things, it can seem intimidating dipping your toes in that crypto pool.

As cryptocurrency is here to stay, we are here to provide you with some relief while answering those looming questions. Cryptocurrency redefines the limits of possibilities and offers a hot new take on how to generate goods digitally. However, before diving head first into the virtual world, we’re here to answer all your crypto-related questions because the future is upon us, folks!

Where do I start?

When commencing your crypto journey, you’ll need to choose a crypto exchange or broker, so you can buy, swap or sell cryptocurrencies. When choosing the right exchange, it’s worth looking at an established platform like CoinSpot, as it offers Australia’s largest list of cryptocurrency and has a proven track record since 2013. Crypto exchanges facilitate the transactions between buyers and sellers, so you can start accumulating digital assets to your crypto wallet.


How does something that’s not physical have so much value?

Just like anything else, the value of digital currency and tokens are determined by supply and demand. If the demand for a particular currency increases, then prices will grow; however, if demand decreases this could also impact the price. 

If more buyers and businesses pique interest in a type of digital fund, the value of the crypto can climb. However, the value can also be increased by other factors, including usability, media coverage and if banks/governments embrace this kind of currency.

What is the Blockchain?

Transaction management and issuing Bitcoins is achieved through Blockchain as it confirms transactions through mathematical algorithms without using a central authority. It secures and records information electronically through a series of ‘blocks’ or a network of nodes, which confirm each user’s status and transaction.

Once the transaction is verified, a ‘block’ is added to the data, making it impossible to alter or cheat the system.


What cryptocurrency should I go for?

Bitcoin and Ethereum are the most popular currencies in the crypto-world, but let us expand a little more on each.

Bitcoin is a digital currency established in 2009 by an unknown group or person under the alias Satoshi Nakamoto. Every Bitcoin transaction is recorded through a public ledger or ‘blockchain’, making it impossible for payments to be changed or reversed.

Bitcoin’s major advantage for being so popular was that it was one of the first cryptocurrencies to emerge, paving the way for the electronic market.

Whereas the latter launched a couple years after Bitcoin in 2015, by programmers Vitalik Buterin and Gavin Wood. Ethereum merely started as an underdog, turning to crowdfund for its early development. However, today Ethereum’s market capitalisation represents more than 17 percent of the $1.2 trillion global crypto market cap, according to Forbes

There is also a world of other digital currencies that are on the rise including Doge. Often referred to as the ‘people’s currency' with a company logo inspired by Japanese Shiba Inu dogs. Although Doge initially started as a ‘joke’ by creators Billy Markus and Jackson Palmer, it’s quickly becoming a prevalent currency used today.

So there you have it! A few tips and tricks for the trade to get that crypto ball rolling to start building your digital empire. Just remember to invest wisely!

Featured Image Credit: Alamy. CoinSpot.

Topics: Money, Cryptocurrency, News