With all that you heard last year, many categorize crypto as the riskiest asset class, and honestly, I cannot even blame them. Beyond the volatility and sudden swings, bad actors in the space have driven the crypto space many steps back. While innovations are prevalent if you search hard enough, many steer away after being burnt.
However, web3’s promise to the world remains to create a more decentralized, transparent, and secure internet. It gives users ownership users more control over their data and digital assets. It makes a more equitable and open internet where power is distributed among many instead of concentrated in the hands of a few large corporations or governments.
Today, we go through how to get started in crypto in 2023.
1. Understanding it all
There are many jargons to be privy to, and crypto serves them all to you in a wide variety. From memes to highly advanced tech references, this may take the longest to understand, but it is a learning journey you build along the way.
To accelerate that, however, Coinmarketcap compiled a list of crypto jargon suitable for any who wants to understand the inner lingo between crypto bros and sis.
Beginner resources are everywhere for you to feed your curiosity. My recommendation, though, is to start with Whiteboard Crypto on Youtube. For the longest time, they have been churning out crypto 101s and explainers for you to understand eaan excellent good place to start.
The decentralized nature of crypto communities allows for a more inclusive environment where everyone can participate and contribute regardless of their background or location.
For this very reason, communities are a great way to kick-start your journey in web3. By tapping into these communities, you speak to like-minded individuals and surround yourself with those with decent footing in crypto.
If you love to binge on podcasts, here are a few resources.
2. Getting a crypto wallet
You now have a rough sense of building your understanding of the space, but this section will help you actively participate in the space.
A web3 wallet is a digital wallet that allows you to store, manage and interact with digital assets on the blockchain. Think of it like a digital bank account, but instead of keeping your money in a bank, your assets are stored on a decentralized network.
Just like your physical wallet, a web3 wallet has a unique address that can be used to send and receive assets. The main difference is that any central authority does not control a web3 wallet, and a private key secures it.
Note: write down your private key physically, and do not share them openly with anyone. It is yours to keep and yours to lose.
You can use a web3 wallet to interact with decentralized applications (dApps) built on blockchain platforms such as Ethereum. For example, you can use it to make transactions, vote on proposals, or access other decentralized services without a centralized intermediary.
Finally, it’s important to remember that web3 wallets differ from centralized exchanges wallets (Binance, Huobi, Kucoin etc.). In those cases, you don’t have control over your private key and instead trust the exchange or the wallet provider to keep your assets safe.
Last year, one of the most popular centralised exchanges took a massive fall; learn more about the Signs The FTX Crash Was Bound To Happen.
3. Doing your own research
The beauty of ownership comes with a responsibility, which is to DYOR.
The cryptocurrency market is highly volatile and can be unpredictable. By conducting your own research, you can better understand the risks and potential rewards of investing in different types of cryptocurrencies.
Unfortunately, the cryptocurrency space is also known for scams and fraudulent activities. By doing your own research, you can be better equipped to identify and avoid these scams.
Cryptocurrency is a relatively new technology and it is still being developed. You can stay informed about the latest developments and potential uses for blockchain and other crypto-related technologies by doing your own research.
Regulations for cryptocurrency can vary widely depending on the location, so it’s important to research your country’s legal and regulatory environment before investing.
Here’s an alpha checklist.
4. Buying some crypto on a DEX or CEX
Between the two, there are certain similarities and stark differences. Before you select which route you would like to take, here is a summary and a comparison.
Regarding control, DEXs are decentralized and not controlled by any single entity, while a single entity controls CEXs. This means that on a DEX, users have more control over their funds and trades.
DEXs are considered more secure than CEXs as they eliminate the risk of a single point of failure or hack. On a DEX, users hold their own private keys and are responsible for their own security, while on a CEX, the exchange has the users’ private keys and is responsible for their security.
DEXs offer more anonymity than CEXs, as users are not required to provide personal information to use the platform. CEXs, on the other hand, often need users to provide personal details and go through a KYC process.
CEXs generally have more liquidity than DEXs, which can result in better prices and faster trades.
DEXs can be less user-friendly than CEXs, and the trading process can be slightly more complicated. DEXs typically have lower trading volumes, and orders can take longer to fill. CEXs generally have higher trading volumes, and buying and selling are more straightforward.
- Choose a cryptocurrency exchange: There are a variety of cryptocurrency exchanges available, such as Coinbase, Binance, and Kraken. Choose a reputable exchange with good security that supports the type of cryptocurrency you want to buy.
- Create an account: Sign up for an account on your chosen exchange. You will likely need to provide your personal information and verify your identity.
- Add funds: Most exchanges will allow you to add funds to your account using a bank transfer, credit or debit card, or wire transfer. The specifics will vary depending on the exchange you choose.
- Buy cryptocurrency: Once you have funds in your account, you can use them to buy the cryptocurrency of your choice. The process will vary depending on the exchange, but generally, you must navigate to the website’s appropriate section and place an order.
- Choose a decentralized exchange: There are a variety of decentralized exchanges available, such as Uniswap, Sushiswap, and Kyber Network. Choose an exchange that is reputable, has good liquidity and supports the type of cryptocurrency you want to buy.
- Connect your wallet: To use a decentralized exchange, you will need a wallet that supports the exchange. Examples of wallets that can be used on DEXs are MetaMask, Trust Wallet, and MyEtherWallet.
- Add funds: Once you have connected your wallet, you can add funds by sending cryptocurrency from another wallet or an exchange.
- Place an order: Once you have funds in your wallet, you can use them to place an order on the decentralized exchange. You can either place a buy order or a sell order.
5. Crypto Twitter is where the fun is at
Twitter can be an important tool for crypto investors. It is a great source of news and information about the crypto industry. Many influencers, investors, and industry experts use Twitter to share their thoughts and insights on the latest developments in the crypto market.
Twitter is a fast-paced platform that gives you early access to news and information about new crypto projects, partnerships, and other developments. It can give you a sense of the general sentiment of the market and help you understand how the community is receiving different events or announcements.
In conclusion, getting started in the world of crypto in 2023 involves researching different types of cryptocurrencies and the technology behind them, choosing a secure wallet to store your crypto, buying some crypto through reputable exchanges, using your crypto for purchases or as an investment and staying safe by keeping your private keys and seed phrase secure.
It’s important to remember that the cryptocurrency market is highly volatile, and it’s important to do your own research and invest only what you can afford to lose. Additionally, always be aware of the potential risks and volatility of the market. With these steps in mind, you can take your first steps into crypto in 2023.
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Chaindebrief