Investing in Cryptocurrency has now become an industry that some use to fastly gain millions, while others still try to figure out how it functions and how safe it is. Those who postpone learning its basics will regret it later. That’s why this beginner’s guide on how to make money with cryptocurrency will teach you what crypto is, how it works, and ways of using the best tools to invest.
Coinbase CEO, Brian Armstrong predicts that within a decade the global economy will be changed through cryptocurrency. “My guess is that in 10-20 years, we’ll see a substantial portion of GDP happening in the crypto economy,” he adds.
Moreover, during the International Hospitality Investment Forum (IHIF) in Berlin, Larry Cuculic, CEO of retained-profit membership organization Best Western Hotels & Resorts advised business owners to start introducing cryptocurrency to be used as payment for hotel rooms, spas and other services.
“We need to realize that we can change and adapt as leaders. There are some fundamentals that are associated with that – communication, truth, and culture – but how we do that can change,” he added.
In a continuously changing world, more business owners are looking toward the future and integrating cryptocurrency into their companies. That’s one of the reasons why we, as clients, can have great advantages if we know the trade BEFORE it starts being mainstream.
Cryptocurrency history
We have all heard about Bitcoin by now and how it went from $1 to $60,000. And while Satoshi Nakamoto, the anonymous creator of Bitcoin made cryptocurrency famous, it was invented long before that.
First Crypto
Actually, the first attempt at creating crypto was registered in 1983. David Chaum launched a company named DigiCash and created eCash, the first known cryptocurrency in history. He conceptualized a tolken currency which was privately transferred between two people, in safe conditions. eCash was developed through a “blinding formula” that encrypted the information passed between people.
Oldest Crypto
Bitcoin is actually the oldest surviving cryptocurrency. It was released via a whitepaper in 2008.
First Crypto Purchase
The first cryptocurrency purchase happened in 2010. The client paid 10,000 BTC for two pizzas. Talking in 2022 money, this is the equivalent of $222 million.
INTERESTING FACT
All cryptocurrency creators are anonymous. This is the single way they can protect themselves from being targeted by intrusive paparazzi and criminals.
What is Cryptocurrency?
So what exactly is cryptocurrency, the product that transformed some Americans’ lives for the better?
While some regard cryptocurrency as a virtual online currency, in fact, it’s a digital asset like stocks and bonds.
Similar to cash that utilizes coins or paper bills, crypto incorporates a virtual “unit”, “token”, or “coin” with different names and values. They can be bought from cryptocurrency exchange companies and traded, bought, or sold with other individuals who own online currencies. That’s an extra bonus compared to stocks that can’t be traded between people.
Unlike standard money, crypto is decentralized. This means there is no central authority like banks and governments that manage the currency. However, the way cryptocurrency is kept within a “system” by the cryptocurrency company itself. That institute takes care of all the crypto units and establishes when new virtual units are created.
The largest and most known cryptocurrency in the world is Bitcoin. Some financial advisers even name any crypto which is not Bitcoin “altcoin” as a sign of its popularity.
Why is cryptocurrency essential for our future?
It’s very important to understand that we live in a rapidly changing era. For instance, the industrial revolution created the transition from expensive hand-crafted products to fast industrial serial items that were considerably cheaper. Now industrial products take most place in our homes while we own only a limited number of artistic items.
We are now transitioning into a Technological Era. The pandemic has already accelerated the pace by adding online tools to most businesses that were functioning mostly offline. The next step is replacing old money with the new currency. Most people already use cards more often than cash, so it’s just a matter of years until crypto will become the main money currency.
How does Cryptocurrency work?
Cryptocurrency can be exchanged very easily on any dedicated platform and app. There are a few simple steps to follow.
Creating an account on a crypto-dedicated exchange platform is the same as subscribing to any online app. For instance, one needs to introduce only the name and card details.
Immediately after, you are free to check the crypto values and make your purchases or trades. However, we advise you to gain a little knowledge before starting your trades.
Educating yourself on Investing in Cryptocurrency
That’s where crypto education starts. In order to start investing in crypto smartly, you will need some good financial tutors to help you gain experience.
Does this sound expensive? It isn’t. There are some great comprehensive courses to introduce you to the crypto world, but a much faster and better experience is the crypto exchange apps themselves. Some of them have constantly refined their features to help their users learn to trade in real-time.
Crypto Teachers
Tornado is the best crypto investment app if you wish to learn directly from experts without any extra cost. The brilliant way its owners, two ex-Wall Street brokers, created it is to help users learn directly from experienced investors.
The app has an option where any user can observe and follow what other users are doing. It also offers chat options so clients can ask Tornado leaders questions. To motivate users to learn the trade, the app additionally offers $50 after finishing each financial lesson module. In other words, you are paid to learn.
Furthermore, you don’t even have to start investing. You can only use the app to learn.
Crypto Lessons
However, if you want to learn the theory first, the best app to do that is Coinbase. Its CEO, Brian Armstrong is one of the greatest investors in the world and is known for his political activism and moral views. In order to help people gain knowledge on investments and cryptocurrency he created Coinbase. The app has its lessons split into four categories to help users navigate the info easier.
The first category is CryptoBasics, created for beginners and as reminders for advanced investors. The second category includes Tips & Tutorials, to make the information visual for subscribers. Next, the app contains Market Updates to help users find all news regarding cryptocurrency. Lastly, the developers launched an Answered Question section where they can add their inquiries as well.
Best tools for Cryptocurrency
After learning the basics the next step is to start investing in crypto. There are many platforms that offer this possibility and each has pros and cons.
One of the best investing apps is Acorns. It’s a gigantic platform with over 10 million users. Forbes, The Wall Street Journal, and Business Insider consider it the world’s best investment app. Subscribers can also make money through other options the platform provides. There are 350+ retailer partners offering rewards or cash back, great security, money tips, and advantages such as fee-free withdrawals at all ATMs within the AllPoint Network.
In other words, if you haven’t yet tried it, you should give it a go and join the other 10 million Americans using it to save and invest.
