Crypto for Noobs | What’s cryptocurrency all about?

What is cryptocurrency?

How does cryptocurrency work?

So, what’s that whole blockchain thingie?

Types of cryptocurrency

1. Bitcoin

2. Ethereum

3. Litecoin

How do you buy and store cryptocurrency?

1. Select a platform

  • Traditional brokersYou can find online brokers who, along with helping you buy and sell other financial assets like stocks, bonds, and ETFs, make it possible for you to buy and sell cryptocurrencies. They generally offer lower trading costs, but do not provide you with a lot of crypto features.
  • Cryptocurrency exchangesThere are several crypto exchanges that you can choose from. They offer varying cryptocurrencies, wallet storage, interest-bearing account options, etc. A lot of these crypto exchanges charge asset-based fees.

2. Fund your account

3. Place an order

  • Bitcoin trustsBitcoin trusts offer retail investors exposure to crypto through the stock market. Essentially, you can buy shares of Bitcoin trusts using a regular brokerage account.
  • Bitcoin mutual fundsThere are quite a few bitcoin mutual funds available to choose from.
  • Blockchain stocks or ETFsYou can take the indirect route by investing in companies that specialize in the blockchain technology behind crypto and crypto transactions. You could also buy ETFs of these companies.
  • Hot walletsThese are crypto storage that make use of online software to protect the private keys to your assets.
  • Cold walletsThese are also known as hardware wallets. They rely on physical offline devices to securely store your private keys.
Cold or Hardware wallets (Source: Unsplash)‍

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