Part 1: What Is Crypto?

If you're curious about cryptocurrency but don't know where to begin, you're in the right place. This guide is written especially for beginners and anyone who feels unsure or overwhelmed by all the jargon.

An easy way to understand crypto is as a comparison with mail. Crypto assets are digital money and they can be compared with email versus snail mail. Digital assets move at the speed of light like email, but ordinary currency (fiat currency) can take hours or even days to arrive.

Why would a seasoned being want to invest in Bitcoin?

1. Diversification

You've probably heard the saying "Don't put all your eggs in one basket." Bitcoin can be a new type of investment to add alongside stocks, bonds and savings. It rarely moves the same way as the stock market.

2. Protection against inflation

Over time, the value of regular money can go down because of inflation. Bitcoin has a limited supply — only 21 million will ever exist — so most people see it as a hedge against inflation, like digital gold.

3. Staying current and engaged

Learning about Bitcoin can be a fun way to stay sharp and up-to-date. It's also a great way to connect with younger generations who are probably already into crypto.

4. Accessibility and control

With Bitcoin, you control your money directly. You can send it, hold it (HODL) or spend it — no bank needed.

Points to note

Until you are familiar with cryptocurrencies the three safest assets to start with are Bitcoin, Ethereum and Stablecoins. To buy crypto safely, start with well-known established companies such as Coinbase or Kraken. Once you have purchased a cryptocurrency, the safest place to store it is a hardware wallet.