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The Simplest Way I can Describe Everything You Need to Know About Cryptocurrency

1. Cryptocurrency Guide For Beginners
2. Beginners Guide Investing In Cryptocurrency

With that, we decided to make a simple guide to cryptocurrencies that may be helpful to beginners and potential users of this asset. So if you still feel confused about some crypto concepts, then feel free to read ahead. What is cryptocurrency? Cryptocurrency is a digital currency that may be stored in digital wallets.

Here is a guide to cryptocurrency for beginners. We offer simple answers to questions like what is cryptocurrency, how does it work, what is Bitcoin, what is blockchain, how do I buy cryptocurrency, etc.

Metaphor: Cryptocurrency is a bit like online banking without a central bank. It is software-based, like an online banking platform. There is a ledger (called a blockchain), balances, and account numbers. You access your balances by using a password and can make transactions this way. Just like with online banking, you don’t need to know how it works under the hood to use it.

What is Cryptocurrency? Cryptocurrency is a type of digital asset that functions as a currency. The system that makes a cryptocurrency possible is based on cryptography (“crypto”) and a cryptocurrency is meant to be used like a currency (“currency”). With that in mind, not every digital crypto asset is meant to be used as a currency like the popular cryptocurrency Bitcoin is.

What is Bitcoin?Bitcoin is a software file stored on computers across the world that acts as a ledger of financial transactions called a “blockchain.” The ledger contains account numbers called “public addresses” associated with balances of Bitcoin. People can move around balances of Bitcoin if they have the passwords (or “private keys”) to those accounts using software called a “cryptocurrency wallet” (see description below). Bitcoin is the name of both this system and its unit of the currency. You can phrase it like this, “balances of Bitcoin tokens are moved around on the Bitcoin blockchain by creating transactions in Bitcoin wallets.”

Cryptocurrency Guide For Beginners

What is Blockchain? Technically Blockchain is first and foremost a database protocol (a set of rules) for sorting data into “blocks,” but it’s easier to think of a Blockchain as a type of database. Essentially, it is a spreadsheet where data is stored in cells (or “blocks”) that are linked together in order by cryptographic codes called “hashes.” This database is generally decentralized and distributed on many computers instead of being stored in one central location or managed by one central entity. In Bitcoin, blockchain is generally used to describe both the public ledger where all transaction data is stored and technology (the protocol) behind the ledger. Many who aren’t believers in Bitcoin as a currency / digital asset are supporters of blockchain technology and its many applications both within finance and beyond.

On Being Decentralized and Distributed. Instead of Bitcoin being hosted on one computer or one company’s computers, Bitcoin is hosted on many computers by many different entities (it is distributed). Meanwhile, everything is either done democratically or is controlled by algorithms, so there isn’t a need for a “centralized” middle-man like a bank or government (it is decentralized). Bitcoin’s blockchain is in this sense both decentralized and distributed.

Cryptocurrency Guide for Beginners. Cryptocurrency Guide for Beginners. By Pam July 12, 2019, 7:13 pm 99.3k Views. Maybe you’ve heard of bitcoin,. Here is a guide to cryptocurrency for beginners. We offer simple answers to questions like what is cryptocurrency, how does it work, what is Bitcoin, what is blockchain, how do I buy cryptocurrency, etc. Metaphor: Cryptocurrency is a bit like online banking without a central bank. It is software-based, like an online banking platform.

How is Cryptocurrency Different From Fiat Currency?Fiat currency, like the U.S. dollar, is controlled by central banks and controlled by states. It is legal tender and you can pay your taxes with it. Cryptocurrency, like Bitcoin, isn’t controlled by a central entity… but it isn’t legal tender and you can’t pay your taxes with it. Otherwise both fiat currencies and crypto currencies act as mediums of exchange and stores of value. With that in mind, some argue that cryptocurrency is a digital asset with exchange value, but not a true currency.

Can I buy things with Cryptocurrency? Cryptocurrency can be used as a payment method for any good or service that accepts cryptocurrency. The most common cryptocurrency used as payment is Bitcoin. As time goes on, accepting Bitcoin and other cryptocurrencies as payment is becoming more common. Check out a list of things you can buy with Bitcoin.

What are the Benefits of Using Cryptocurrency as a payment method? There are a number of benefits of cryptocurrency as a payment method. The main benefits of cryptocurrency in this sense are the often low transaction costs and quick transaction fees compared to other payment systems. On a good day cryptocurrency is the quickest and cheapest way to send money around the globe (XRP is a great example of this). Cryptocurrency is also an easy way to make payments online, especially for peer-to-peer transactions. Another big benefit is that cryptocurrency doesn’t require trust, which removes potential worry for both the sending and receiving party. Meanwhile, for some people in some states, cryptocurrency can act as an alternative to a states’ currency (which can be good if that currency is suffering from rapid inflation for example).

How do I Buy / Sell Cryptocurrency? One can buy and sell cryptocurrencies like Bitcoin via online brokers or exchanges like Coinbase or GDAX. Exchanges are like digital stock exchanges, but for cryptocurrencies. Learn how to trade cryptocurrency or check out our cryptocurrency investing starter kit.

Is Cryptocurrency Legal? In general, cryptocurrency is legal in every respect in the U.S. and much of the world. The only rules of thumb are 1. you have to pay taxes on it and 2. anything that would be illegal otherwise is also illegal with cryptocurrency.

Is Cryptocurrency Taxable in the U.S.? Cryptocurrency is taxed as an investment property, that means you have to tally profits and losses at the current market value of a cryptocurrency when you sell it, use it, or trade it and then pay the capital gains tax on profits in a calendar year. Please take time to learn about the tax implications of cryptocurrency.

What is an ICO? An ICO is an initial coin offering, a way for a new coin to raise money by offering a pre-sale of an up-and-coming token. ICOs are controversial. On one hand, some ICOs have been scams, on the other hand some states have worried that ICOs are mimicking securities without following the securities rules. One should do extra research before participating in an ICO.

What is a token? Token is a word that has a few different meanings in cryptocurrency. In simple terms, it just describes a cryptocurrency and its unit of value (a cryptocurrency = a token). For example one could say “I have 10 Bitcoin tokens.” The term is also sometimes used to describe cryptocurrencies existing on other coin’s networks. For example, the KIN ICO is a token on the Ethereum network. Lastly, encrypted bits of data that don’t contain identifying information are also called “tokens,” this type of token is also used in cryptocurrencies. In other words, what the term means depends on context.

How Do Transactions Work? Software called a cryptocurrency wallet (see below) is used in conjunction with an account number and password (technically public address and private key). The private key (known only to its owner, like a password) is used to create a signature that allows the owner to move around funds on the blockchain. Transactions are then secured on the blockchain in sequential blocks by “miners” (see the next section). Almost all cryptocurrencies work like this.

How Do I Store Cryptocurrency? In overly simple terms, you essentially “store” cryptocurrency in cryptocurrency wallets (see the next point for the technical details). For long term, you’ll likely want a “cold wallet”(where you store your private keys offline). For short term use, you might use a range of options or even temporarily keep funds on an exchange (but be careful, if it is connected to the internet, it is a “hot target”).

What is a Cryptocurrency Wallet? A wallet can be thought of as software that allows one to store cryptocurrency and create cryptocurrency transactions. This is a simple way to think of a wallet even though cryptocurrency isn’t technically stored in a wallet (instead public addresses are associated with transactions recorded on the blockchain, and thus are associated with balances, which the wallet software can read and display for you). More technically then, a wallet is software that allows you to store your private keys, view balances associated with public addresses, and create and sign outgoing transactions. With that noted, one must differentiate between wallets where you control your private keys (like the Bitcoin Core wallet), and custodial wallets where third parties host the wallet for you and are in control of the private keys (like the wallets on Coinbase or GDAX).

What is a Node? Since cryptocurrency is distributed many computers around the world have to run the software. Any computer running a copy of the software is “a node.” A full node runs a full copy of the blockchain.

How are New coins Created? When a transaction is created in a wallet it is broadcast to everyone in the Bitcoin network. For that transaction to be added to the ledger, users running mining software must solve cryptographic puzzles that let them add a block of transactions to the blockchain. The reward for adding a block is newly minted cryptocurrency. Thus “mining” is cracking puzzles to play digital accountant, and new coins are minted as rewards for mining transaction blocks.

How is Bitcoin Secure? Bitcoin is secure for two main reasons. 1. It uses a lot of one-way encryption that makes everything that is encrypted next to impossible to hack (it requires a ton of work). 2. It is distributed and so there is no central software to hack.

How does the cryptography aspect of Bitcoin work? At the core of Bitcoin, in terms of cryptography, is cryptographic hash functions. Key concepts include public-key cryptography and proof-of-work functions. If you want a crash course in the cryptography behind those terms, clicks those links and try reading the Bitcoin white paper: Bitcoin: A Peer-to-Peer Electronic Cash System.

What Happens If I Lose My Keys or if Someone Steals My Cryptocurrency? If you lose your private key, you lose access to the balances associated with it. If someone gets access to your crypto and they steal it, there is generally no way to resolve this issue. However, if you use a third party platform, like an exchange, and the exchange and not your account is hacked, then you might have recourse. The major exchanges tend to be good about reimbursing users in the case of a hack.

How Can I better Secure My Cryptocurrency? Since losing your keys and theft are real issues, it makes sense to follow some best practices of basic internet security. Keep your keys backed up offline (learn more about secure cold wallets), don’t store all your crypto in one location, be careful about URLs (make sure the URL is the real one), use a browser dedicated to crypto, use two factor authentication on any account you can, choose strong unique passwords, and don’t use your public email to log into your accounts. Taking just a few of these steps will go a long way to protecting you, taking none of these steps is asking for trouble. As a rule of thumb two-factor authentication is a must, so make sure it is enabled on all platforms that allow it! TIP: Although there are exceptions to this rule, the main security risk with the major cryptos isn’t the software (the software takes a ton of work to hack) or the major exchanges (the major ones are ensured, keep most of their funds in cold storage, and have security teams), it is people not taking care to secure their accounts.

Is Bitcoin Anonymous? Bitcoin is pseudo-anonymous. Every transaction is recorded on the public ledger (the blockchain), but no identifying data is used. Everyone can see the transaction and the public wallet address associated with it, but no one knows who made the transaction (unless that person or entity makes that information public). Other cryptocurrencies have more or less focus on privacy than Bitcoin. Some cryptocurrencies, like Monero are truly anonymous (in theory). With Monero, not even transaction data is public.

What is a smart contract? A smart contract is exactly what it sounds like, a “smart” (software-based and programable) “contract” (a set of conditions that when met execute the terms of the contract). Smart contracts can be written to a cryptocurrency’s blockchain to create a trustless contract (a peer-to-peer contract that doesn’t require a middle-man or trust). Unlike paper contracts a software contract can execute any function that can be executed by the software once conditions are met. This means in theory smart contracts can replace real contracts, but also do anything software can do. Ethereum’s system relies heavily on smart contracts, anyone can create a smart contract on Ethereum if they have the native Ether token to pay the fee for using the system. TIP: Bitcoin transactions are smart financial contracts, but Ethereum allows for smart contracts for much more than just financial transactions. Ethereum’s contracts can distribute new tokens, double as insurance contracts, or anything you can think of.

On Being Peer-to-Peer and Trustless. An important feature of cryptocurrency is that it is trustless. The encryption, code, blockchain, etc all comes together to allow for a trustless peer-to-peer distributed and decentralized system. That sentence might sound jargon-y, but it contains some important points. At the core, the idea is that all the aspects of cryptocurrency come together to create a system that doesn’t rely on trusting your peers or trusting a middle-man. Contracts written to the blockchain are written in stone, there is no need for trust or middle-men to ensure the execution of a contract once its conditions are met!

Crypto Terms: “FOMO” is fear of missing out (an emotional response to seeing the price move a lot and wanting in). FUD is fear, uncertainty, and doubt that can affect prices of assets. “HODL” is a misspelling of hold from an old forum post (it today means “hold on for dear life during big price movements”). A “hard fork” is like a fork in the road, a copy and paste of software that allows each copy to branch off in a different direction (when this happens with Bitcoin the ledger is duplicated along with balances, meaning people get the newly forked coins for free). An “Airdrop” is a method of distributing newly minted coins to the wallet addresses of current coin holders. See a list of crypto jargon.

Did I miss something or do you need something clarified? Just ask me a question in the comments below and I’ll answer it.

Welcome To The World of Crypto

Hello and welcome, curious human who wants to learn more about getting started with cryptocurrency!

If you’re a very early beginner just poking around and wanting to know more about this “thing you heard of from a friend or seen in the news”, then congrats! You’re in the right place.

My goals for this beginners cryptocurrency guide and how you’ll benefit:

• Warmly welcome you to the world of cryptocurrency and blockchain
• Empower you to sort through the overwhelm by explaining a few basics in simpler terms
• Point you to some useful resources for education and investing in cryptocurrency for beginners
• Ask you questions to help you think about your own unique journey

I know that it can be overwhelming. Heck, even I’m overwhelmed still, a few years in. There’s a lot of noise out there, and much of it seems either: 1) too technical or 2) kinda scammy (let’s be honest).

However, the good news is that I’m here to welcome you, from one normal person to another. Think of me as a friendly host greeting you at the door of a somewhat geeky but totally awesome party.

Who am I?

A non-technical crypto & blockchain enthusiast who happened to find out about cryptocurrency back in 2015. Mainly I’m a real human. Professionally, I’m a writer, empowerment coach, entrepreneur, and marketing comms consultant. I’m super passionate about empowering others and creating impact at scale.

What got me into it?

My then-date, now-husband. I loved the way he tried to explain Bitcoin to me while flirting over dinner, and well, the rest is history. Since then, I’ve been a big believer in blockchain and its potential to move humanity forward.

What about you?

My guess is that you’re mainly interested because you’ve heard of crypto recently through news headlines or someone you know. Bitcoin prices have skyrocketed in 2021 (all-time-high at over $41,000 per Bitcoin at time of this writing), and major companies like PayPal, Visa, and Square have hopped on board too.

But you may have also noticed that crypto prices fall as quickly as they rise. Though it’s not as Wild West as it was a few years back, you’ve still got to hold onto your hats cowboy or cowgirl.

And here’s where I must note the disclaimers:

• This is NOT professional investment advice. While I’ll talk about investing in crypto from my own point of view, if you do choose to invest, you need to do it in a way that’s aligned to your own goals and preferences.
• The world of crypto can be a bumpy ride. Buckle up! 😉
• This is not meant to be an in-depth nor technical guide. There are endless online resources that go deeper (and I’ll include good starting points for you with links to curated resources)

This is YOUR journey. I’m just here to greet you at the door.

I created this beginner toolkit so that you can refer back to it and digest at your own pace, so please be sure to bookmark it and save it.

You got that? We good? Ok, then let’s get started.

Crypto Basics

While you might not need to know nitty gritty technical details to understand crypto, it’s important to have a basic foundation. Knowledge is power, my friend.

What is cryptocurrency?

A digital currency secured by cryptography. It is a store of value and medium of exchange, created electronically via blockchain technology.

What makes cryptocurrency so cool:

• Many cryptocurrencies are decentralized. This means that transactions on a peer-to-peer network of computers are verified and records are maintained by a decentralized system, rather than by a centralized authority. It’s in the hands of its users.
• Due to its underlying technology, it is nearly impossible to counterfeit or double-spend.
• Its supply is not determined by a central bank nor government (unlike traditional analog “fiat” currencies like the dollar, euro, yen, etc.)
• To date, there are thousands of different cryptocurrencies, but the most well-known with the largest market size are currently Bitcoin and Ethereum.

For a high-level overview of cryptocurrency, please read Investopedia’s explanation here.

What is blockchain?

Blockchain is technology in which blocks of information are chained together in a shared digital record.

Think of the blockchain as a shared memory. It is what remembers the different transactions. Without memory and who paid who, cryptocurrency like Bitcoin doesn't work. That is why the blockchain is important and enables cryptocurrency.

What makes blockchain technology so useful (below applies to public blockchains):

• It is secure and less likely to get hacked because it leverages cryptography
• It is immutable. That means the data is un-deletable/un-changeable
• It is transparent and trustworthy. It can be audited by anyone who is in the system
• It can be used as a shared, public ledger to record information and transactions
• It is open for anyone to join and participate
• It can be on a public decentralized network (no one person, government, or authority owns it), yet you can have a private key to access your own data
• It enables transactions to be sent and received from anybody in the world
• “Blockchains combine the openness of democracy and the Internet with the merit of markets.” -Naval

For a more detailed walkthrough on blockchain, please see this step-by-step Blockgeeks guide.

What is Bitcoin?

Bitcoin (BTC) is a decentralized digital currency that is built on blockchain technology. It enables instant payments to anyone, anywhere in the world.

• Bitcoin is the first established cryptocurrency, and the most well-known. It’s market cap is currently ~600 Billion USD
• In 2008, Bitcoin was first mentioned in a white paper by the mysterious pseudonymous “Satoshi Nakamoto”. In 2009, Bitcoin software was made available to the public and the Bitcoin blockchain was created. Read more on the history here.
• There is a limited supply. In total, only 21 million Bitcoin will ever exist. Here’s why.
• It is considered “digital gold” because of its store of value and needing to be “mined” (the process by which new Bitcoins are created)
• There is an extremely well-organized “Getting Started” guide on Bitcoin.org that walks you through the different steps of how to use and accept Bitcoin.

I can also recommend following Andreas M. Antonopoulos, who is a longtime expert and excellent educator in the Bitcoin and blockchain space. He has a “Bitcoin For Beginners” video series.

What is Ethereum?

Ethereum is a global, open-source platform for money and decentralized applications. Ether (ETH) is the cryptocurrency of Ethereum apps.

• It is the second most-popular cryptocurrency by market cap, currently ~150 Billion USD
• First mentioned in a white paper by Vitalik Buterin in 2013, it was created with other developers and launched publicly in 2015
• It’s not just a currency. As explained by Ethereum.org,
  • “Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee.”
  • “It also powers applications that everyone can use and no one can take down.”
  • “Ethereum builds on Bitcoin's innovation, with some big differences. Both let you use digital money without payment providers or banks.”
  • “But Ethereum is programmable, so you can also use it for lots of different digital assets. This also means Ethereum is for more than payments. It's a marketplace of financial services, games and apps that can't steal your data or censor you.”
• If Bitcoin is an app for money, you can think of Ethereum as an app store. In the Ethereum app network other developers can build apps, using the features and functionality of blockchain technology.

You can read more about the differences between Bitcoin vs. Ethereum here

What about other cryptocurrencies?

There are literally thousands of other “altcoins” (ie, cryptocurrencies other than Bitcoin). Some have great promise, value, ambitions and intent. However, unfortunately some are scams that don’t bring value (some people call them “shitcoins”). You can take a peek at the variety at CoinMarketCap and do your own research in which cryptocurrencies you want to get involved in.

Can cryptocurrency or blockchain be used in real life by real people?

Yes! Though mainstream adoption has been relatively slow, there are multiple use cases.

Now, more and more people are becoming aware of the power of using crypto and blockchain.

Here are some top use case examples:

• Sending peer-to-peer electronic cash, even internationally. You could send crypto via your phone to your cousin in another country. While there might be varying network fees for that, they would receive what you sent almost instantly. (Especially when compared to slow bank transfers).
• Financial empowerment for citizens, especially in developing countries where inflation rates are high, national currency is unstable, and there’s government corruption.
• Smart contracts. These are self-executing contracts with the terms of the agreement between parties being directly written into lines of code. These contracts can then be leveraged in healthcare, media, real estate, governance, and other industries. Here’s a peek into 25 blockchain use cases.
• Using your crypto to buy things in the real world. For example you can exchange your crypto for gift cards to major retailers on Bitrefill. Or buy items on Amazon via Purse.

I first discovered uses for blockchain in a personal way after my mom died of cancer. Managing the legal parts of her death were excruciatingly painful. And it inspired me to do further research and write an article on Hacker Noon here: “How Blockchain Could Make Life & Death Easier for Families.”

For more real-world context and stories, I highly recommend reading the book, “Blockchain Revolution” which explains how blockchain is changing money, business, and the world.

The crypto job market is also growing, as evidenced by the many job listings on CryptoJobsList.

And to see how Bitcoin is impacting real human lives in countries like Argentina and Uganda, please check out our short documentary series BitcoinFilm, a volunteer-run project that I’m a part of.

Investing in Crypto

Lately, there’s been lots more mainstream interest in crypto investing. At the Bitcoin ATM (yes, these exist!) in our neighborhood, the shopkeeper said that even grandmas are buying Bitcoin now. What was once seen as sketchy has now become more popular.

Disclaimer: Once again this is NOT professional investment advice as you are responsible for your own investments. I am just sharing my personal thoughts in response to the top three frequently asked questions from friends.

FAQ #1: “Where do I start if I want to invest in cryptocurrency?”

This is a loaded question. It really depends on where you are in life, what your goals are, where you live, etc. However, here’s what I can say:

• Educate yourself. And since you’re reading this, you’re already on your way. Knowledge is power, not just for financial empowerment, but because the space is really growing and will disrupt existing archaic systems globally.
• Learning about the big picture impacts of cryptocurrency, it’s why, and ideology behind it, can help keep you more calm and think long-term.
• There are heaps of investment resources and so-called “advisors” out there. Some are legit, some are shady. Be wary of where you get your resources. And do your own homework before choosing which crypto to invest in.
• “How to Invest in Cryptocurrencies: The Ultimate Beginner Guide” by Blockgeeks covers buying crypto, storing crypto securely, and other important considerations.
• If you want to buy first on an established exchange with your money as a total beginner, you might want to take a look at Coinbase, Blockchain.com or Kraken. These are few of the big ones.
• You can start small with what you’re comfortable with. It’s possible to buy a fraction of Bitcoin or another cryptocurrency. Even if it’s $500 worth, at least now you have skin in the game and are more motivated to learn.

My story?

I started really small. In 2015, my now-husband gave me $5 worth of Bitcoin. Then I kinda forgot about it. A year later, I started investing and put in automatic weekly buys of as low as $75 on Coinbase for tiny fractions of Bitcoin. And when I felt like I learned enough to take bigger risks I bought more and added other cryptocurrencies like Ethereum and Litecoin.

I am a long-term investor and NOT a crypto trader. My strategy has simply been to buy a little and hold it. In crypto slang terms I “HODL” hehe. Could I make more profits by trading? Sure. But I honestly don’t have the mental energy nor balls to do that. And it’s paid off as now my modest crypto portfolio has given me some financial freedom.

You may try a very different approach. I can’t advise on what’s best for you.

But here are somecoaching questions to help you figure out what's right for you:

What are your goals for investing in crypto?

For example in my case, I want financial freedom that allows me to focus on my overall health, happiness, well-being, family, and legacy. I want to have enough assets in my portfolio to cover a few years of basic living expenses and self-fund my passion projects. I don't want to have to trade time for money and burn out working anymore. I've burnt out three times already in the past (def not fun) and work-life balance is super important to me now.

What’s a comfortable balance for you between risk vs gain?

In my case, I was admittedly terrible at saving money in my bank anyway, so I figured I might as well invest bit by bit at the chance of gaining. Back when I started, crypto was even riskier and less established, but I wanted to try having my money work for me by investing long-term. Overall in life I am comfortable with taking educated risks. That said, I'm the type to invest in more established cryptocurrencies, whereas some of my friends have the balls to day trade some newer ones.

Beginners Guide Investing In Cryptocurrency

What are you willing to lose, without significantly impacting your lifestyle?

In my case, I never invest more than I’m ready to lose. This helps me not freak out about day-to-day price fluctuations.

Where do you live and what are the crypto regulations and taxes in your area?

For example, in Germany, there are no capital gain taxes on selling crypto if you hold your assets for over one year. Whereas in the US, crypto gains are subject to capital gains taxes if you sell no matter how long you hold.

How does crypto fit into your overall investments and income streams?

In my case, I have diversified my overall portfolio by investing in a retirement fund and a bit of real estate. If any one thing goes south, I have other options beyond crypto. As for income I am an entrepreneur and can scale my businesses as needed for income.

There is no one-size-fits-all approach here. That’s why it’s up to you to research and decide what fits your unique situation and lifestyle.

Of course, there are broader considerations in investing beyond crypto. If you’re just getting started in empowering yourself to learn more about financial freedom, I’m writing a separate article on the mindset of creating your financial freedom and growing your wealth holistically. Subscribe to my newsletter here so you don’t miss it.

FAQ #2: “Am I too late to the cryptocurrency game?”

Everything is relative. What is your personal definition of late?

• As my husband Jacob says, “If you think of it in terms of education, then it's really never too late to start educating yourself. Blockchains are here to stay and they will change the world. It's like the invention of the book. We shouldn't hold ourselves back from reading books just because other people have already started reading and we feel late to the game.”
• As my friend Savannah Peterson mentions here, “We’re now in the technical trough of realization where we’ll see how this technology will actually benefit us. Which means if you’re just learning about blockchain for the first time this year, or this month or today, you’re perfectly on-time.”
• To put things in perspective, people asked about being late when Bitcoin was at $1,000. Then people asked again when it soared to $20,000 in 2017. It dropped back down to the $5000 range in March 2020, and is now in the $30,000 range at the time of this writing.
• For some, it is a hot time to invest in crypto. For others, there is FOMO for not getting in sooner. Some are still skeptical and wouldn’t touch it with a 10-foot pole because of the roller coaster ups and downs. And others patiently wait to “buy the dip” (when prices drop again).

Only you can define what “late” means. You have to decide for yourself if or when to get in.

FAQ #3: “Is cryptocurrency risky? What about scams and hackers?”

Once again, everything is relative. What is your personal definition of risky?

• To put it into perspective, have you ever believed that something like your job or business was “secure”, and then you lost it? 2020 has shown us that there’s a lot of uncertainty in the world. Investing in crypto can be a tool for self-empowerment and reclaiming your personal agency.
• If you invest in crypto, it’s helpful to think of it as a relationship. You have to maintain it, put time into it, educate yourself on it, grow with it. If you think you can just get in and out like a one night stand to get rich quick, well then good luck to you.
• If you don’t maintain it, you could lose it. Seriously. If you forget how to log in to your account, lose a paper or hardware wallet and don’t have backups, then you can’t access it and it’s gone. I know people who have lost thousands of dollars worth of Bitcoin because they couldn’t remember their own passwords.
• Yes there are scams and hackers, but that’s also true for current financial systems, and current state of the internet. If anything, getting into crypto has helped me become even more aware of security and privacy issues in the regular world.
• That said, you do have to be mindful of security risks and protect yourself via secure passwords, two-factor-identification, different wallets, etc. Binance provides a beginner’s overview of “How to Secure Your Cryptocurrency”
• There are a lot of mainstream misconceptions about Bitcoin and its risks. Anthony Pompliano’s interview here with Daniela Cambone articulately clears some of them up.

For me, investing is a part of my long-term strategy to reduce overall risk in my life by diversifying my income streams. Investing in crypto is just one stream.

How will you choose to balance risk vs reward?

Learn More

I hope that you found this welcome guide helpful. While it might feel like there’s a lot to navigate in crypto, I’m happy that you stopped by to check out this new world and educate yourself on the basics.

A lot of people just think about crypto in terms of investing, but there are so many possibilities for it to change the way we live and work beyond that. There’s a growing community of people who want to leverage it to do good, so don’t let a couple of bad apples discourage you.

Now it’s up to you to go forth and continue your own journey! You can do it, I believe in you!

List of helpful resources to learn more:

• Blockgeeks - Blockchain education portal with articles, guides, courses
• Bitcoin.org - Full of user-friendly resources and information on Bitcoin
• Investopedia - Simplified financial information for investing overall (beyond crypto)
• Coinmarketcap Latest cryptocurrency prices by market cap
• Coindesk - A leader in crypto and blockchain news and information
• Let’s Talk Bitcoin - Podcasts, articles, forums to give voice to crypto & blockchain
• Bitcoinfilm.org - Human stories of Bitcoin’s impact on society, told through short films

Connect & Share

Kindly note: You might have a bunch of questions at this time, which is so exciting! However, I have limited capacity to answer individual questions because I am entering a new chapter of life as a first-time mom who’s also writing a memoir on grief. That’s why I’ve built this welcome guide to make my knowledge more scalable. I kindly ask that you empower yourself to continue your own research. 🙂

However, I’d LOVE for us to stay in touch in other ways:

Free Newsletter: Want more inspiration and practical life tips to empower you to design a life + work you dream of? Then don’t miss out and please subscribe to my Real Human Newsletter.

Staying connected: I regularly share nuggets of wisdom publicly on social media and would love to connect with you there! Find me all over @jennmchoi (Instagram, Twitter, Linkedin, YouTube, Clubhouse)

Sharing is caring: If you know anyone who could benefit from this guide, please SHARE IT far and wide across your socials or via email!

The more we can educate the more we can empower.

Welcome to the world of crypto and blockchain. And cheers to designing a life + work you dream of!

To the moon!

With love and light,

Jenn