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Beginners guide to cryptocurrency
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2022 Beginners Guide to Cryptocurrency: everything you need to know to get started
Welcome to Canstar’s inaugural cryptocurrency guide for beginners. The world of cryptocurrency is constantly evolving, so this is your guide to understand the foundations of the digital asset and the ever-changing marketplace.
Like any investment decision, thorough research into the asset, in this case, the coin you’re purchasing, and exchange and wallet you choose, is imperative. This guide will provide you with the essentials to start your journey, whether you’re looking to invest or just to understand what cryptocurrency actually is.
What are cryptocurrencies and how do they work?
As an investor, it’s important to understand what you are investing in and the principles behind it. Unlike traditional investing, cryptocurrency is a decentralised and unregulated space to invest in and, therefore, is seen as more risky than traditional investments. So, what should you understand about cryptocurrency before launching in?
Types of cryptocurrency
So you’ve heard of Bitcoin, but what are the other cryptocurrencies that could be worth investing in? According to CoinMarketCap.com, there are close to 15,000 different cryptocurrencies that are traded publicly. We deep dive into five of the biggest.
How to buy cryptocurrency
If you’re ready to add cryptocurrency to your portfolio, the first step is to choose a cryptocurrency exchange where you can buy your crypto token of choice. There’s a fair bit to consider before diving into making the purchase like where to buy, how to store and how to monitor the performance.
What to look for in a cryptocurrency exchange?
Not every exchange is created equal, and not every crypto investor is suited to the same style of exchange. Picking an exchange can be determined by considering your location, the type of crypto you’d like to buy and the features you are looking for. But, how do you know which exchange is right for you?
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Cryptocurrency fees explained
Every cryptocurrency exchange charges different fees depending on the type of transaction and the features of the exchange. These fees can vary greatly so it’s worth investigating before signing up for a platform. We break down the type of fees and why they are charged.
What is a wallet?
When you buy cryptocurrency, you can choose to keep it stored on the exchange or you can withdraw your crypto and store it in an external wallet. The level of security depends on your needs as an investor and will determine the type of wallet you might choose.
The future of cryptocurrency
Now that you have a better understanding of how cryptocurrency works, it’s worth considering where the digital asset is heading in the future. See the latest trends in cryptocurrency that could affect the market and pricing.
Cryptocurrency terms you should know?
Getting started in cryptocurrency can be overwhelming and for a beginner, it can even feel like learning a new language. Having a handy glossary can make a big difference when you’re at the early stages of your cryptocurrency journey and you can refer back to it whenever you need to.
Important Information
This guide is intended to provide factual information, not advice. To the extent that any advice is contained in the Canstar Cryptocurrency Guide, such advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs. You may need financial and tax advice from a suitably qualified adviser before making any decision to buy or sell cryptocurrency or any other financial product. For more information, read Canstar’s Financial Services and Credit Guide (FSCG) and our detailed disclosure.
The Canstar Cryptocurrency Guide has been sponsored by CoinSpot but the editorial content has not been influenced by the sponsors.
Canstar is a comparison website, not a product issuer, so it’s important to check any product information directly with the provider. Consider the applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Contact the product issuer directly for a copy of any relevant product documentation.
Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs.
If you decide to buy or sell cryptocurrency, you will deal directly with a product provider, and not with Canstar. Rates and product information should be confirmed with the relevant provider. For more information, consult the provider’s website.
The views, opinions, and positions expressed in this piece are the views of the author(s) alone, and do not necessarily reflect the views of Canstar. Any people listed as reviewers of this guide are not responsible for the content of the guide.
All information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall or rise.
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