The Complete Beginners Guide to The World of Crypto

Have you ever realized that it is quite difficult to find a good starter guide on cryptocurrency these days? Everyone is specific and assumes their readers know 100% of the terminology which just is not the case. We have realized this and have decided to create this beginner’s guide for anyone that is new or simply interested in what Cryptocurrency is all about. Our mission is to help inform the average consumer about cryptocurrency and what to look for to understand how you should think about investing in various coins.

Most younger generations know at least about the two main Cryptocurrencies advertised today. Bitcoin and Ethereum are wonderful coins that have taken cryptocurrency to an entirely new level. However, these are not the only two contenders as there are thousands upon thousands of different coins on different blockchains all with different purposes and features. Some of these coins are joke coins or are made to pump and dump and the owners sometimes rug-pull causing you to lose your entire investment! So, there are a few key things that we will go over that you should look for in a cryptocurrency that helps avoid those fraud types of coins.

If you already have experience in the crypto world then this guide may serve as a memory refreshment or just a fun informative read. So, sit back and grab a cup of your favorite coffee or tea or…any other beverage that you may enjoy because I am just the author of this guide and shouldn’t be telling you what to drink 😊 Let’s Get Started!

If you understand what currency is then it will be quite easy to understand that “cryptocurrency” is the same thing, only digital. Digital currency can be used for a variety of things such as goods and services, but rather than your traditional payment methods, digital cryptocurrency uses an online “ledger” of sorts with strong cryptography to secure all its transactions. Cryptography is the art of writing or solving digital codes and this is done with advanced unique algorithms that require specific machinery to solve each type of code called “blocks.” When a transaction is recorded on any blockchain it is put into a block puzzle to be solved by “mining machines”. Mining machines are small computer systems geared specifically for solving specific algorithms depending on which coin they are trying to mine. Some cryptocurrencies do not operate this way but for the more mainstream coins, this is how things get done.

Try to think about it on these terms, over 6% of all US households do not currently have bank accounts. That is 14.1 million adults just in the United States alone. Digital currency or Cryptocurrency is a way to create transactions without using a traditional banking system. A lot of people are against this concept; however, cryptocurrency will not ever replace traditional banking systems that offer loans and mortgages. Those will still exist; this is just another way to exchange goods and services for those that choose not to use a traditional bank.

The plus side to cryptocurrency is that if you make the right investment choice in a specific coin and the value of the currency increases, so too does the value of the coins you have invested in. This has made many people incredibly wealthy as if you had invested just 1 thousand dollars in July of 2011 you would have around 72 BTC which is worth just over 4.1 million dollars today. Not every coin/token is going to bring you that kind of a turnaround however and it is important to understand what to look for when trying to make sound long-term investments.

This is a basic question that deserves a more informative answer than most give. The key to buying cryptocurrency is just like it is with regular currency. You need to have a cryptocurrency wallet! There are hundreds if not thousands of wallets that exist today, but when cryptocurrency was brand new there were limited options and a couple of those online options turned out to be horrible ideas as they were breached and hacked, and a lot of people lost millions of dollars’ worth of their investment.

Luckily, times have changed, and smart people have put their collective minds together and have created much more secure ways of storing and keeping your investment. This is absolutely the most important thing to remember when starting out in your crypto journey. Whichever wallet you decide to go with, which could even be multiple wallets for storing multiple diverse types of cryptocurrencies there is one important thing to remember. That is your wallet recovery phrase.

Whenever prompted with what your wallet recovery phrase is you need to physically write this information down and store it somewhere you will never lose or forget it. There have been multiple people that have lost fortunes because they simply forgot their recovery phrase and no longer had access to their wallets. Avoid being one of these people at all costs.

The Trezor Wallet:
Trezor is a secured hardware wallet that provides advanced security for handling cryptocurrencies to allow the safest method of storing your investments as nothing online is ever completely secure. This eliminates worry and allows the most secure crypto transactions available today. You are also able to connect Trezor via our exchange to purchase various coins using Ethereum right here at Coin Stomper! We HIGHLY recommend Trezor as it is our go-to wallet due to its price and security features.

Again, there are many diverse types of wallets and even more hardware wallets that exist, we just wanted to provide an overview of the most secured type for your own benefit. Please watch the short video below to learn more about Trezor hardware wallets.

So, you now have your fancy new wallet and have written down and safely stored away, your recovery phrase in a place that you will not ever forget about, and you are ready to start making those investments in these shiny new coins! That is fantastic, let us go over a few ways of purchasing cryptocurrency.

Think of your digital cryptocurrency wallet as a mailing address. Your wallet contains one address per each available currency, when you buy cryptocurrency, you purchase with your traditional money on an exchange of some sort and afterward digitally mail that cryptocurrency you purchased over to your wallet address for safekeeping/storage.

Let us say for hypothetical sake that you saw a market trend or read about an exciting new cryptocurrency on The Daily Stomper and your investment that you had stored in your super safe wallet is now worth millions. That is right! The cryptocurrency in this hypothetical situation just turned your fake thousand-dollar investment into a smooth fake 3-million-dollar investment and you want to cash out!

To cash out you simply reverse the process of buying cryptocurrency. Now that your investment has paid off and you would like to cash out you simply must mail your cryptocurrency back to a major exchange such as Coinbase and you can exchange that currency for USD or whichever currency you would like, and you’ll be able to transfer it to your bank account. The bonus of doing it through a platform such as Coinbase is that you will also have taxes sent directly to you so make sure you save back a lot of those fake dollars because you will be taxed for them.

Now let us say this hypothetical situation has changed a bit and you invested in a different kind of coin, one that isn’t so mainstream and isn’t available to exchange for on Coinbase…now what should you do if this radical BSC coin just made you a hypothetical millionaire? Well, you will need to find out which blockchain your investment is run on and then find a compatible exchange, generally, BSC coins are on the Binance blockchain and can be exchanged for another major cryptocurrency such as Ethereum on exchanges like Binance. Simply create a Binance account, send your cryptocurrency there or exchange it on another platform like PancakeSwap or UniSwap for a more mainstream coin first and then finally send that mainstream coin with low transfer fees over to Coinbase to withdraw that hypothetical treasure of yours. We will list a few popular exchanges below to make your investments with.