What do I need to know about Crypto?

Unfortunately, quite a lot,

but we’ve got you covered!

As with learning anything new, there is a lot of information that needs to be absorbed and digested before you will be able to tread water and prevent yourself from drowning. Fortunately, we are here to help and have created this comprehensive beginner guide on Crypto and Blockchain that will bring you up to speed on the different types of technologies, their applications, and teach you how to use them safely!

Is crypto money?
Here is what we will be covering in this article:

Cryptocurrencies are digital or virtual currencies that use cryptography for security and are not backed by any central authority, such as a government or a bank. They are decentralized and operate on a distributed ledger called a blockchain, which is a record of all transactions that are updated and verified by a network of computers.

Cryptocurrencies allow for peer-to-peer transactions without the need for intermediaries, such as banks, and they offer a relatively high degree of anonymity.

Examples of the most famous cryptocurrencies, based on usage and market capitalization include:

That said, not all cryptos are equal and there are all kinds of unfamiliar termonologies like stablecoins, shitcoin, utility tokens, De-Fi, and many more involved that you should have an understanding of before you should consider putting your hard-earned money into them!

We provide a good introduction to all the major players and applications as well as the differences between them a little later, but for now, we will begin with the basics.

Is crypto real money?

What is a blockchain?

A blockchain is a decentralized, distributed ledger that is used to record and track transactions. It is a digital, cryptographic system that is designed to be secure, transparent, and immutable, and it is the underlying technology that powers many cryptocurrencies, such as Bitcoin and Ethereum.

A blockchain is made up of a series of blocks, which are individual units of information that are linked together in a linear, chronological chain. Each block contains a set of transactions, as well as a unique identifier called a “hash” that links it to the previous and subsequent blocks in the chain.

Another key feature of a blockchain is that it is transparent, which means that anyone can view the data on the network. However, the data on a blockchain is encrypted and secure, which means that it is difficult for anyone to access or tamper with the data without the appropriate keys and permissions.

To summarize, a blockchain is a powerful and innovative technology that has the potential to revolutionize many different industries and applications. It is already being used in a variety of ways, including as the basis for many cryptocurrencies, and it is likely to continue to evolve and develop in the coming years.

Is Cryptocurrency real money?

The short answer is yes.

To explain this we first look at :

Money is a medium of exchange that is widely accepted in transactions for goods and services. It is a unit of account, a store of value, and a standard of deferred payment. Money allows people to trade goods and services without having to rely on bartering, which can be inefficient and inconvenient. The most common forms of money are physical currencies, such as coins and paper notes, however as it is merely a representation of value used for bartering purposes, it means that:

Money can also take the form of digital currencies, such as cryptocurrencies.

We have an entire article dedicated to What money is, and how we use it, which will provide you with some hidden insights into its roots as well as the purpose it serves in modern society.

What sets crypto apart from FIAT currencies?

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and is not backed by any central authority, such as a government or a bank. While it is a form of money, it differs from traditional fiat currencies in several important ways.

9 differences between Cryptocurrency and traditional Fiat currencies:

With these characteristics at play, people would consider cryptocurrencies to be more akin to commodities or assets than to traditional forms of money, however, with recent changes in the industry and the collapse of large exchanges like FTX, the industry is under a lot of scrutinies. There are also different types of technologies and parties at play and not all of these promote anonymity and decentralized solutions any longer.

This has opened up a world of regulation, where cryptocurrency is no longer the wild west it was back in 2009-2020 and in many cases has started to function a lot more like a centralized Fiat currency, making it more trackable, making use verifications systems like KYC authentication which eliminates a lot of the anonymity it previously offered.

Before that though, we need to cover the most important part of this article, the risks!

What are the risks of crypto?

Now that we have established that Crypto is a legitimate form of value exchange, it does not mean you should immediately put all your life savings into it, there are still several major risks to consider before you decide to add it to your portfolio.

The 8 biggest risks of investing in cryptocurrency:

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  • Volatility
  • Lack of regulation
  • Hacking & Security
  • Inflation
  • Shitcoins
  • Complexity
  • Adaption
  • Scams & fraud
Futures Trading

Overall, investing in cryptocurrency carries a high degree of risk, and it is important for investors to carefully consider these risks before making any decisions.

If something seems too good to be true, it usually is.

The best and safest practice when it comes to investing in cryptocurrency is to practice self-custody for your savings and to only use exchanges and other platforms sparingly and for the specific purpose of trading and staking, limiting your exposure to risk!

What is self custody and why should I use it?

Self-custody is the practice of holding and managing your own private keys and other assets, rather than relying on a third party to do it for you. In the context of crypto, self-custody is considered the best practice because it allows you to maintain full control over your assets and ensure their security and privacy.

When you hold your own private keys, you are the only one who has access to your assets, and you are the only one who can make transactions with them. This means that you are not reliant on a third party, such as a crypto exchange or a wallet provider, to manage your assets and keep them safe. Additionally, self-custody allows you to maintain complete privacy, as you are not sharing your private keys with anyone else.

Overall, self-custody is considered the best practice in crypto because it allows you to maintain full control over your assets to ensure their security and privacy. It is an important part of maintaining the decentralization and autonomy of the crypto ecosystem, and it is a key aspect of responsible crypto ownership.

Real-world cryptocurrency applications

What are the real-world applications of crypto?

Cryptocurrencies and blockchain technology have many potential real-world applications, and they are already being used in a variety of industries and applications. Some examples of the real-world applications of crypto include:

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  • Financial services
  • Supply chain management
  • Identity & security
  • Data storage & management
  • Gaming
  • Charity & Social
  • Music & entertainment
  • Energy & Environmental
  • Healthcare
  • Goverment & Private Industry
  • Retail & E-Commerce
Futures Trading

Cryptocurrencies and blockchain technology have the potential to revolutionize many different industries and applications. They offer unique benefits, such as decentralization, security, and transparency, which are already being used to create new and improved products and services in a variety of different fields.

Different Types Of Cryptocurrency And Tokens

There are also many different types of tokens, which are digital assets that are built on top of existing blockchain platforms and there are new technologies and applications emerging on a daily basis as crypto becomes more adopted by the mainstream.

While there are thousands of different coins, each with its own flavor and utility, they can all be divided into a few practical categories based on their application and use, here are:

The 10 main types of crypto tokens:

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  • Utility tokens
  • security tokens
  • Payment tokens
  • Stablecoins
  • Asset-Backed tokens
  • Equity tokens
  • Governance tokens
  • Application coins
  • Reward tokens
  • Non-fungible tokens
Futures Trading

Understanding the different types of tokens is important because it can help you to make more informed and effective investment decisions, and it can also help you to understand the potential risks and rewards of investing in crypto.

What are the top 10 cryptocurrencies based on market capitalization

Market capitalization is an indicator that measures and keeps track of the market value of a cryptocurrency and the amount of value stored between the total amount of coins/units in circulation

It is important to note that the rankings of cryptocurrencies by market capitalization can change rapidly.

Top 10 Cryptocurrencies by market capitalization 7th Dec 2022

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Futures Trading

The market capitalization of a cryptocurrency is not necessarily a reliable indicator of its value or potential as an investment, and it is important to carefully research and evaluate any crypto investment before making a decision.

Before you start trading, be sure to read out article on investing fundamentals and check out our article on the Top crypto exchanges to make sure that you use the right tool for the right job.

For spot trading, we recommend using Crypto.com and for Perpetual or inverse futures Bybit is by far our best pick. We cover both here, in this article too!

Always do your own research before buying anything!

Do your own research when picking the right cryptocurrency to invest in!

Crypto terminologies, technologies, and uses worth knowing!

There are many other important crypto terminologies, technologies, and uses that are worth knowing, and it is important to continue learning and staying up-to-date with the latest developments in the field. We are going to look at some relevant key concepts and terms to be familiar with as a beginner.

Here are :

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  • Smart Contracts
  • NFT’s
  • Trading bots
  • DeFi
  • Stacking
  • Mining
  • Wallets
Futures Trading

It is important to understand these concepts and terminologies because they form the foundation of blockchain technology, which has the potential to disrupt a wide range of industries and change the way we conduct business, transfer value, and share information.

What are smart Contracts?

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. Smart contracts allow for the automation of digital assets, such as money, and the fulfillment of contracts without the need for intermediaries, such as banks or legal professionals.

Overall, smart contracts are a powerful and versatile tool that has the potential to revolutionize many industries by enabling the automation of complex transactions. They are a key component of many decentralized applications and blockchain-based platforms, and they are likely to become increasingly important in the future.

What are NFTs?

NFTs, short for non-fungible tokens, are digital assets that are unique and cannot be replicated or exchanged for other assets on a one-to-one basis. They are built on blockchain technology, and they are often used to represent ownership of digital art, collectibles, and other digital assets.

NFTs have gained popularity in recent years as a way to authenticate and verify the ownership of digital assets, and they have been used in a variety of applications, such as art, gaming, and collectibles. However, there are also some concerns about the environmental impact of NFTs, as the process of minting and trading them can use significant amounts of energy.

Overall, NFTs are a relatively new and rapidly evolving technology, and their use and potential applications are still being explored. They offer unique benefits for representing ownership of digital assets, but they also carry some risks and challenges that need to be carefully considered.

What are crypto trading bots?

Crypto trading bots are software programs that use algorithms and other automated methods to analyze the market and make trades on behalf of a user. These bots can be programmed to follow specific trading strategies, such as buying and selling based on certain technical indicators or market conditions, and they can be set to operate 24/7, allowing them to make trades even when the user is not actively monitoring the market.

Crypto trading bots can be a useful tool for investors who want to automate their trading activities, but they are not a replacement for careful research and due diligence. It is important for users to carefully consider the risks and potential rewards of using a crypto trading bot before making any decisions.

What is DeFi?

DeFi, short for decentralized finance, is a movement that aims to use blockchain technology and cryptocurrency to provide financial services that are open, transparent, and accessible to anyone with an internet connection. DeFi aims to provide an alternative to traditional financial institutions, such as banks and credit card companies, which can be slow, opaque, and difficult to access for many people

Some examples of DeFi applications include decentralized exchanges, which allow users to trade cryptocurrencies without the need for intermediaries, lending and borrowing platforms, which allow users to lend and borrow money using blockchain technology, and stablecoins, which are cryptocurrencies that are pegged to the value of a traditional fiat currency, such as the US dollar.

Overall, DeFi is a growing movement that is changing the way that financial services are provided and accessed. It has the potential to democratize finance and make it more accessible to people around the world.

What is crypto mining?

Crypto mining is the process of using powerful computers to solve complex mathematical equations in order to earn rewards in the form of new units of a cryptocurrency. This is a way of generating new units of cryptocurrency, and it also helps to support the security and decentralization of the blockchain network.

Crypto mining can be a profitable activity, but it also requires a significant amount of resources, including powerful computers and a lot of electricity. Additionally, the competition among miners can be intense, which means that it can be difficult for individuals to profit from mining unless they have access to very powerful computers and low-cost electricity.

Crypto mining is an important part of the process of maintaining and securing many blockchain networks, and it provides a way for users to earn rewards for their contribution to the network. However, it is a complex and resource-intensive activity, and it carries some risks, such as the risk of losing money on expensive hardware and electricity costs.

What is crypto staking?

Crypto staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. By staking their cryptocurrency, users can earn rewards for helping to maintain the security and decentralization of the network. This is different from mining, which involves using powerful computers to solve complex mathematical equations in order to earn rewards.

Crypto staking is a way for users to earn a passive income from their cryptocurrency holdings, and it can also help to support the security and decentralization of the blockchain network. However, it is important to note that staking carries some risks, such as the risk of losing access to your funds if the staking wallet is hacked or if the staking pool becomes insolvent.

As with any investment, it is important to carefully consider the potential risks and rewards before deciding whether to participate in crypto staking.

What are crypto wallets?

A cryptocurrency wallet is a digital wallet that allows you to store, send, and receive digital currencies like Bitcoin and Ethereum. Unlike a traditional wallet, a cryptocurrency wallet does not store physical currency. Instead, it stores your public and private keys, which are used to send and receive digital currency, and to track your balance.

Some cryptocurrency wallets also allow you to manage multiple cryptocurrencies within the same wallet, as well as have various types of accounts. A good crypto wallet operates just like you would expect an actual wallet or banking service would, and it offers the same various services they do. debit, credit, investing, borrowing, and others.

There are 5 types of wallet accounts to consider:

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  • Spot
  • Futures
  • Margin
  • Earn/Staking
  • Defi
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Distinguishing the different uses of wallets can be a little confusing at first, but as you progress with your journey as a crypto trader you will start to get a better understanding of what they do and how to use them. The wise investor knows to research and carefully consider the various financial products and services offered.

Learn how to trade crypto the right way!

Trading Crypto is actually pretty easy to do. All you need is access to the internet, proof of identification, money to fund the account, and some basic technical knowledge on how crypto pairs and exchanges work. Don’t let this fool you though, as easy as it is to setup, successfully trading any commodity repeatedly is not an easy task.

We will cover the basics in this article, however, we also have an in-depth article on this topic that provides more details on avoiding coming pitfalls and discusses strategy and best practices in more depth, so be sure to check that out here.

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  • Choose an exchange
  • Create an account
  • Deposit Funds
  • Pick a Crypto pair to trade
  • Place your trade
  • Monitor your trade
  • Read our Dos and Don’ts article
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The 7 steps to starting crypto trading

Crypto Trading can be a complex and potentially risky activity, and it is important to carefully research and understand the market before making any trades. It is also important to carefully manage your risk and to be prepared for the volatility of the market.

As with anything worth doing, it’s hard until it isn’t!

There are two main types of crytpo trading

Spot VS Futures trading

As a beginner trader, you are gonna be dealing with two main types of trading, spot where you purchase and own your tokens, and futures or margin, where you are putting down an initial deposit and then leveraging that the same way you would take a home loan to purchase a house. As I am sure you can tell the latter, derivatives trading is much riskier than spot, where you retain ownership of whichever cryptocurrency you purchase.

Be sure you check out our article on investment fundamentals to improve your knowledge and reduce your risk by learning some of the universal best practices!

Spot Trading
Futures Trading

What is crypto spot trading?

Spot trading is a type of investment in which an investor buys or sells an asset at the current market price. In the context of cryptocurrency, spot trading refers to the buying and selling of cryptocurrencies at their current market price on a cryptocurrency exchange. This is different from futures trading, which involves buying or selling a cryptocurrency at a predetermined price on a specified date in the future, and most importantly you own the asset!

Overall, spot trading is a popular and potentially profitable way to invest in cryptocurrency, but it is important for investors to carefully consider the potential risks and rewards before deciding whether to participate. It is also important to choose a reputable and secure cryptocurrency exchange to trade on and to carefully research and understand the market before making any trades.

What is crypto futures trading?

Futures trading is a type of investment in which two parties agree to buy or sell an asset at a specified price and date in the future. In the context of cryptocurrency, futures trading refers to the buying and selling of futures contracts on a cryptocurrency. A futures contract is a legally binding agreement to buy or sell a specific amount of cryptocurrency at a predetermined price on a specified date in the future.

Overall, futures trading is a complex and potentially risky investment activity, and it is not suitable for everyone. It is important for investors to carefully consider the potential risks and rewards before deciding whether to participate in futures trading.

What are the biggest crypto exchanges?

The biggest crypto exchanges are online platforms that allow users to buy, sell, and trade cryptocurrencies. The size of a crypto exchange is typically measured by its trading volume, which is the total value of all transactions that take place on the exchange over a given period of time.

Some of the biggest crypto exchanges in the world include:

Overall, the size and popularity of crypto exchanges can vary greatly, and the biggest does not mean it’s the best. We have a comprehensive article that reviews the top crypto exchanges and weigh their respective pros and cons.

If however, you just want to know what we believe the best exchanges are for beginner traders are, based on security, low fees, but also user-friendliness and token coverage then head straight over to:


For Spot trading


For Futures

Where are the best places to learn more about investing?

If you have gotten through this article, you have already taken a massive step forward in becoming a successful trader! We have covered all the basics and provided a good foundation for you to further your career as a crypto trader, however, trading is one of those skills that you never stop learning, and this article alone is not enough to turn you into an overnight success.

If you are serious about improving your capabilities as a trader then be sure to check out our section dedicated to growing your wealth and be sure to check out our:

Our top 6 articles on growing your wealth through crypto

These will give you a good understanding of investing and provide you with more comprehensive insights on what the be looking out for and where you should be putting your focus!

If you are looking for more in-depth articles on crypto technologies, technical indicators and trading strategies then check out:

The top 4 recommended free crypto learning sites

Mastering a skill takes time, but it is worth doing!

Good luck and don’t give up!

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