Hello Arkeners! today we are checking out the very basics of the crypto world. This crypto guide could be treated as a crypto 101 lesson for beginners and veterans alike. The guide concludes with the “how to(s)” and examples of the best crypto apps in the process. If you are ready, let’s rumble!
How do I start buying crypto?
Before anything else, you have to know the differences between a centralized exchange (CEX) and a decentralized exchange (DEX) in the crypto world. Centralized exchange can be regarded as an intermediary for crypto investors. Its most crucial functions include exchanging fiat money for cryptocurrencies and being an investment platform for users in exchange for service fees. You can treat it as a bank in an ordinary financial world.
Meanwhile, there are decentralized exchange entities aiming to cross out the process of intervention of the intermediaries such as centralized exchanges. Without intervention from such intermediaries, you are basically dwelling in the decentralized finance (DeFi) world. However, for first-time users, exchanging fiat money for crypto assets in the DeFi world can be troublesome but manageable.
Once you have a wallet, you can either exchange fiat money with crypto assets with your acquaintances who are already in the DeFi world or make a direct transfer from your account in the centralized exchange to your DeFi wallet.
Once you have determined your purposes of investment, you can easily start buying crypto-assets from both centralized or decentralized exchange systems.
How does crypto earn money?
There are various types of crypto assets. Some have no real value by themselves but are recognized by people and become popular. Some are pegged to real-world currencies which are called “stable coins”. However, you can still earn money by the methods below
Most assets fall into the rule of supply and demand. Once there is high demand for a certain crypto asset, the price of that particular asset will be driven up in accordance with the demand while constraining other variables. So making a profit/deficit is natural
Investors might consider “staking” your asset to a project and become a liquidity provider (LP). Most projects compensate their LP(s) by rewarding them with tokens. So this is another method to earn some money.
How do I link my bank to crypto?
Linking your bank account to the crypto world can be done through centralized exchange and the process requires verification from the service provider. Once your profile is verified, you are free to make transactions on the platform.
How much should beginners invest in crypto?
This is solely depending on your risk tolerance level, but you must do your own research, especially in the DeFi world, since there is no one to regulate the system and anyone can create anything with no binding sanction afterward.
Which app is best for cryptocurrency?
There are various applications and projects depending on what chain you are on and the services you are looking for.
If you are looking to make use of a credible trading platform in centralized exchange then we can suggest Binance, Huobi Global, Coinbase, and Kraken for example.
While in the DeFi world, some of the most credible and efficient trading platforms are Arken Finance, Uniswap, dYdX, and Sushiswap for example.
Which cryptocurrency should I invest in in 2022?
This solely depends on your insight and strategy to invest in the crypto world. However, here is the list of top 5 tokens listed by market capitalization as of the date of the writing:
Name Market Cap Price
This concludes everything you need to know about crypto for beginners. Let us know what you think.