How to Get Started with Crypto

Written By Armand Farooq

1.UNDERSTANDING THE BASICS 

Before diving in, here are key concepts to grasp:

  • Cryptocurrency: Digital money secured by cryptography and powered by blockchain technology.

  • Blockchain: A decentralized, public ledger that records transactions securely.

  • Wallet: A tool that allows you to store, send, and receive crypto.

  • Exchange: A platform where you can buy, sell, and trade cryptocurrencies.

  • Private Key: A secret code that gives access to your crypto assets (never share it!).

2.CHOOSING A CRYPTO WALLET 

A crypto wallet is your gateway to managing digital assets. There are two main types: 

  • Hot Wallets (Connected to the Internet – More convenient, less secure)

    • MetaMask (Best for Ethereum and DeFi) 

    • Trust Wallet (User-friendly mobile wallet)

    • Exodus (Multi-asset wallet with an easy UI)

  • Cold Wallets (Offline storage – Ultra-secure, best for long-term storage)

    • Ledger Nano X 

    • Trezor Model T 

Pro Tip: Use a hot wallet for daily transactions and a cold wallet for long-term storage.

3.SETTING UP YOUR FIRST WALLET 

STEP 1: Download your preferred wallet from the official website/app store. 

STEP 2: Create a new wallet and securely back up your 12-24 word seed phrase (NEVER share this phrase!). 

STEP 3: Set up security features like 2FA (Two-Factor Authentication). 

STEP 4: Receive your first crypto by copying your wallet’s public address (looks like 0x1234abcd...).

Warning: Never store your seed phrase online (screenshots, emails, cloud storage). Write it down on paper and store it in a safe place.

4.CHOOSING A CRYPTO EXCHANGE 

Exchanges let you buy, sell, and trade crypto. Here are top exchanges to consider: 

  • Centralized Exchanges (CEX) (User-friendly, regulated, but require KYC)

    • Binance (Global leader, many trading pairs) 

    • Coinbase (Great for beginners, U.S.-friendly) 

    • Kraken (Security-focused) 

  • Decentralized Exchanges (DEX) (Privacy-focused, no KYC, but requires knowledge)

    • Uniswap (Best for Ethereum-based assets) 

    • PancakeSwap (For Binance Smart Chain tokens) 

Pro Tip: If you are a beginner, start with a centralized exchange for simplicity, then move to decentralized exchanges one you are comfortable.

5.BUYING YOUR FIRST CRYPTO 

Once you have set up your exchange account: 

STEP 1: Deposit fiat money (USD, EUR, BRL, etc.) via bank transfer or card. 

STEP 2: Choose a cryptocurrency (e.g., Bitcoin, Ethereum, or a stablecoin like USDT/USDC). 

STEP 3: Buy crypto using the exchange’s interface. 

STEP 4: Transfer your crypto to your personal wallet for security. 

Warning: Never leave large amounts of crypto on an exchange. Always transfer to your personal wallet for safety.

6.SECURING YOUR CRYPTO 

Security is everything in crypto. Follow these best practices: 

  • Enable Two-Factor Authentication (2FA) on all exchange and wallet accounts. 

  • Store Private Keys and Seed Phrases Offline – NEVER share them. 

  • Use a Hardware Wallet for large amounts. 

  • Double-Check Wallet Addresses before sending funds (mistyped addresses result in irreversible loss!). 

  • Be Wary of Scams – If it sounds too good to be true, it probably is! 

7.TRACKING & MANAGING YOUR PORTFOLIO 

Stay on top of your investments using portfolio tracking tools: 

  • CoinMarketCap (Market data and price tracking)

  • CoinGecko (Comprehensive asset info & analytics)

  • Delta (Mobile-friendly portfolio tracking)

  • Zerion (DeFi portfolio tracker)

Pro Tip: Monitor your holdings but avoid checking prices every minute to reduce emotional trading.

8.LEARNING & GROWING IN CRYPTO 

Crypto is constantly evolving, so keep learning: 

  • Follow Crypto News: CoinDesk, The Block, Decrypt 

  • Join Communities: X/Twitter (Crypto Twitter), Reddit (r/cryptocurrency), Discord 

  • Use Educational Resources: Binance Academy, Messari, Cryptossance 

Pro Tip: Develop your own investment thesis instead of following hype.

9.WHAT’S NEXT? 

Once you have set up your wallet and bought your first crypto, you can explore: 

  • Staking – Earn passive income by locking up crypto (ETH, SOL, ADA, etc.) 

  • DeFi (Decentralized Finance) – Lend, borrow, and trade without banks. 

  • NFTs (Non-Fungible Tokens) – Digital collectibles and art. 

  • Yield Farming & Liquidity Providing – High-risk, high-reward DeFi strategies. 

!! Final Reminder: Crypto is volatile. Only invest what you can afford to lose. 

Armand Farooq
Previous

A Comprehensive Guide to the Top 20 Cryptos