A Beginner’s Guide in Cryptocurrency Investing

One of the most popular financial assets to invest in right now is cryptocurrency. These assets are created with blockchain technology that more or less serves the same purpose as traditional money including purchasing items. Like foreign exchange, crypto coins can also be traded for other currencies for profit.

While there are some critiques about its stability, there’s no doubt that many financial institutions are slowly warming up to the idea of trading crypto coins with security assets and regulations already in the works of various governments and financial institutions. Cryptocurrency investing is really something that traders all around the world are considering.

To start a probable career, here’s a guide on cryptocurrency investing for beginners:

What is Cryptocurrency?

Cryptocurrency or crypto coins are digital coins that serve the same function as traditional money which can be used to purchase items and other assets. However, unlike traditional coins, crypto coins don’t have a physical form and instead are run by blockchain technology.

Blockchain is like a digital ledger where it comprises of the coin’s entire history including its transactions from the very beginning.

When it comes to storing your cryptocurrency, you would also need a wallet much like your own local currency. However, crypto coins are different from traditional money because it’s decentralized, which means that no single authority is responsible for its circulation. Its unregulated and decentralized nature contributes to its volatile and fluctuating value, but it also means that it’s open for everyone to invest into.

What are the different kinds of cryptocurrency?

According to Coin Market Cap, there’s at least 2,125 crypto coins currently available in the market. However, not all crypto coins are the same since certain types are more in demand than others. To start, here’s a list of the most commonly traded crypto coins today:

1. Bitcoin (BTC)

Bitcoin or BTC is considered as the original cryptocurrency, Bitcoin uses blockchain technology to make transparent transactions between parties. While they’re easily accessible, their features are also secured by an added algorithm which prevents malicious hackers from destroying the blockchain feature.

Bitcoin is considered to be the predecessor of all other cryptocurrencies, which is why the other crypto coins are called altcoins or alternative coins. Basically, these are alternative currencies to Bitcoin; however, these altcoins aren’t inferior in terms of blockchain technology and usability or function.

2. Litecoin (LTC)

Litecoin or LTC is an alternative of BTC which includes starking differences in features. Some of which include:

  • Faster transaction speed
  • An 84 million limit
  • A different algorithm called scrypt

3. Ethereum (ETH)

Ethereum or ETH are digital coins primarily focusing on running and validating the programming code of any decentralized application, allowing it to be used in paying fees and other services on its own network. Ethereum is the most commonly used coin when dealing with ICOs or Initial Coin Offerings because its blockchain technology allows the use of smart contracts.

4. Ripple (XRP)

Ripple or XRP is a unique hybrid that is both a cryptocoin and a payment network for various institutions. They allow any currency to be exchanged which can range from USD, EUR, and even gold to connect to banks. However, unlike other crypto coins, Ripple doesn’t focus on peer-to-peer sharing but instead on moving sums of money to a larger institution.

Each of which share similar decentralized nature but have different components for several purposes.

How do I start investing in cryptocurrency?

After deciding on which cryptocurrency you should start dealing with as well as researching on the different investments you want to make. Here are the steps you need to start:

1. Start exchanging from platforms where you can buy crypto coins

Depending on the country you’re from, there are various sites that allow you to purchase Bitcoin, Ethereum, and other digital coins. Before starting, make sure it’s legal in your country since certain governments are still wary of trading crypto coins. If you can’t find sites that sell cryptocoins, consider peer-to-peer platforms like:

  • PayPal
  • Payza
  • Payoneer

Some Forex platforms also allow cryptocurrency trading so be on the lookout for those, as well.

2. Secure your coins in your cryptocurrency wallet

A cryptocurrency wallet is software that allows you to store your digital coins. Certain wallets also contain features like advanced security, key generation and easy transfer. Like cryptocurrency, digital coin wallets also come in different categories such as:

  • Software wallets – these are downloadable programs that are required to be installed in your computer or device.
    • Desktop – desktop wallets are software wallets that allow you to store your crypto coins in your laptop or computer. Certain wallets may contain online features although most desktop wallets don’t.
    • Online – online wallets are cloud software wallets that require internet connection so you can access your account as well as make various online transactions.
    • Mobile – these wallets are downloadable mobile apps that allow you to check your balance and other transactions on your phone everywhere you go.
  • Hardware wallets – unlike software wallets, hardware wallets are physical storage devices used to store some of your keys. They’re versatile and can be connected online although many are often used to keep investments away for a long time.
  • Paper wallets – are offline software that allows users to store their keys, generate copies, as well as store their cryptocurrency addresses on paper.

Each wallet serves a specific purpose depending on the investment you intend to do. The wallets also vary in price, functionality and security. The more you use your cryptocurrencies, the hotter your wallet should be. If you prioritize security and long-term use above all else, invest in a durable hardware wallet.


Cryptocurrencies are considered a hot investment item because they possess the convenience of today’s technological innovation. With so many options available, many investors can expand their portfolio by choosing more than one kind of coin. To avoid risks, investors should also invest in security items to keep their assets safe.

crypto is coming!

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Hardware Wallet Review: Trezor Model T vs Nano Ledger S

You really can’t be too careful when it comes to storing cryptocurrencies. One of the main ideas behind the crypto movement is individual financial freedom and responsibility. Of course, freedom and responsibility are a two-way street, aren’t they?

With cryptocurrency, you’re free to send funds to who you want, when you want, with no online banking agent looking over your shoulder to supervise or take a cut. However, that means if you lose your funds, there are no support staff to help you out. Your money, your problem, and it’s all too easy to lose money to theft or lost passwords.

hardware wallets are a good solution, allowing users to store their funds on a physical device that also has a backup seed phrase in case the device gets lost, adding an extra layer of security. The wallets keep funds offline and in “cold storage,” meaning they can’t be remotely accessed.

The two main contenders for best wallet are the Trezor and Nano Ledger S – but which one’s better?


Supported cryptocurrencies: Over 500
Amount of currencies stored simultaneously: 
No limit
Price: $170

Trezor supports the most amount of cryptocurrencies by a huge margin, although it’s missing some high-cap tokens at the same time. The supported currencies are the main distinguishing characteristics between the two devices, but they each have their own unique features as well.

The Trezor Model T is a touchscreen device with multiple security layers. A PIN is required to start with, then a passphrase, and device recovery is also available as is 2FA (2 factor authentication such as requiring the user to enter a code sent to them separately by phone or email). Other security features include GPG encryption, SSH encryption, a password manager, and support.

Ledger Nano S

Supported cryptocurrencies: 41
Amount different currencies stored simultaneously: About 5, depending on which ones
Price: $99

The Ledger Nano S supports 41 currencies, several hundred fewer than the Trezor, which seems like quite a disadvantage. It can also only store 4 or 5 at a time while Trezor can potentially store hundreds at a time. However, it’s worth pointing out that the Ledger Nano S supports Ripple, Stellar, and Monero, while the Trezor doesn’t, which might give Ledger the advantage for certain users.

The Ledger isn’t a touchscreen and uses buttons instead. Security features include a PIN-protected chip a secure PIN-protected chip which stores private keys, and BOLOs which are individual shields around each individual app on your device, a novel and highly-secure and supposedly tamper-proof method of safeguarding the data within.


Both devices are compatible with software wallets like MyEtherWallet and MyCrypto. Seemingly the Ledger Nano S is easier to set up than the Trezor which has a more time-consuming setup process.

All things said and done, there are two main differences here:

First off, the Trezor is notably more expensive than the Ledger Nano S which is a major factor. Trezor actually has an older model available for $80 which doesn’t feature a touchscreen, and that may appeal to some users who want to avail of the hundreds of cryptocurrency storage options Trezor has to offer on both models, which is, of course, the second major difference.

The limited storage on the Ledger Nano S is a downside, but then again the options of currencies like Monero and Rippple may appeal to manyy users. At the end of the day, it comes down to which device appeals the most and suits your individual needs – both devices have good reputations for being secure and from trustworthy companies, and it’s good that the community has options in terms of price and currency selection when it comes down to the all-important task of keeping those crypto funds safe.

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Interested in other cool crypto content? Check out Weekly Cryptocurrency markets analysis: November 19 to November 25 and Hardware Wallet Review: Trezor Model T vs Nano Ledger S