Estimates show that the global blockchain market value could reach $67.4 billion by 2026.
While this might sound like a lot, it’s still only about 5% of the global population. Not many people own crypto or even know what it is. As it’s becoming more popular, however, people are starting to get on board to avoid missing out on everything it has to offer.
If you want to start learning, keep reading through this guide on cryptocurrency for beginners.
What Is Cryptocurrency?
Cryptocurrency can seem quite complicated to newcomers. It’s a very modern concept and involves a lot of advanced technology.
Cryptocurrencies are digital currencies that operate on the blockchain — a decentralized ledger. The decentralized technology that this involves ensures that the blockchain can’t be controlled or manipulated by any individual, financial institution, or government.
The first cryptocurrency was Bitcoin, which was created in 2009. Today, there are thousands more, but Bitcoin is still the most popular by a wide margin.
The Biggest Cryptos Available
Various cryptocurrency trends and factors affect the values of different coins. While plenty of them are still very new, some cryptos have experienced huge gains and losses in recent years. None of them have been able to catch up to Bitcoin, but several other coins have become incredibly popular in their own right.
Ethereum is the second-largest crypto available. It was launched in 2015, making it one of the older ones available.
The Ethereum blockchain is the largest blockchain that supports NFTs (non-fungible tokens), which is one of the reasons for its current popularity. One downside of Ethereum that many people don’t like is that it has very high gas fees. This means it can often cost a lot more to make transfers than other blockchains.
Other popular cryptos include Solana, Cardano, XRP, Polkadot, and many more.
Investing in Cryptocurrency for Beginners
You can buy, sell, and trade cryptocurrencies on online exchanges. There are many of these available, and, they offer various features. Some of the most popular exchanges include Coinbase, Binance, and Kraken.
Before you buy any cryptocurrency, you should always DYOR (do your own research). Don’t buy crypto based on what someone else has said without first looking into the projects you’re considering. You should always have a good understanding of what you’re buying so you can decide if it’s right for you.
Another important rule is to never invest money you can’t afford to lose. Cryptocurrencies are very volatile and therefore considered a very high-risk investment. The value can go up quickly, but it can also drop just as fast.
It’s generally a good idea to diversify your portfolio with different coins. This way, if one coin suddenly loses value, it will only be a small portion of your portfolio.
Is Crypto Right for You?
Getting into cryptocurrency as a beginner can be both scary and exciting. The most important thing to do is learn as much as you can. The better you understand the crypto space, the better informed your decisions will be.
Make sure you always know what you’re investing in. Look into the biggest coins and most popular exchanges so you can invest in a way that works for you.