A Guide To Getting Started in Crypto
Here’s how I would do it if I was starting over
This is a guide for those of us looking to get into the space, but are just lost at what to focus on and how to understand an ecosystem that is constantly innovating.
Disclaimer: Nothing in this article, or on my channel is financial advice. Do your own research before investing.
To get the best of this guide, first, look into why — why do you want to learn about blockchain and crypto. More importantly, what you’d like to get out of it.
Is it that you don’t want to miss out on investment opportunities, do you want to buy an NFT, change your career, or do you just want to join in on crypto conversations?
The depth of how much you’ll want to learn will depend on your answer.
My journey towards understanding this space started from the potential investment opportunities. It just blew my mind that people could be multiplying their money exponentially in such a short amount of time.
The more I tried to understand the space, the more obsessed I got with its potential. I guess I jumped down the rabbit hole with this one.
So here’s what I would research to understand blockchain technology and keep up with the crypto space if I was just starting out.
Blockchain Technology
Starting with the foundation of all things crypto — blockchain technology.
Learning this now will drastically help you understand more complex technologies and solutions that are built on the blockchain. You’ll also start understanding the utility (or lack thereof) behind different crypto tokens.
I provided a simplified explanation of blockchain technology in two articles on Medium — you can find part one linked above and part two here.
Consensus Mechanism
Once you have an understanding of what blockchain technology is, how it works and how it’s different to any other solution available today, it’s time to learn how new blocks that are created get accepted on the blockchain through a consensus mechanism.
To understand this, you should look into proof-of-work and proof-of-stake.
Layered Solutions
Both proof-of-work and proof-of-stake are part of a layer 1 scaling solution.
There are various layer 1 and layer 2 scaling solutions that support the functionality and feasibility of blockchain ecosystems.
Looking into this will give you an even better idea of which crypto tokens could be solid investments or just worth reading up on.
Different Blockchains
Now it’s time to look into different blockchains. Almost everyone has heard of Bitcoin, most have even heard of Ethereum, without having a clue that they are different blockchains.
With some elementary knowledge from learning about the core terms in this guide; differentiating different blockchains, understanding their function and limitation becomes a lot easier.
Web 3
Web 3 is the term used to describe a decentralised internet. There has recently been lots of talk around how a similar story to the dot-com bubble will play out first before Web 3 becomes widely accepted and adopted. Until then, many people in blockchain are looking to find the eBay and Amazons of Web 3 so they can invest early and reap the rewards.
Many people in the space also believe that the rise of the creator economy will play a role towards a more rapid Web 3 mass adoption. It’s worth reading up on this in more depth to understand the concept and its use cases.
NFTs
The next thing to dive into is the NFT space. Non-fungible tokens (NFTs) are getting a lot of attention as there are many people who have made substantial wealth either by creating NFTs or trading them.
Non-fungible tokens have a lot more to them than just ‘getting rich off JPEGs’. The use cases vary from revolutionizing digital art copyrights, serving as entry tickets, gaming assets and much more.
Metaverse
Since Facebook has announced their rebrand to Meta, the term metaverse as a whole has been getting a lot of attention.
With the rise of metaverse gaming (using NFTs as assets or deeds to lands) and the race to find new, innovative ways to connect with people remotely, the metaverse has a big future ahead if the interoperability issue can be resolved.
Crypto
You’ve learnt the basics of blockchain technology, limitations, functionality and ecosystems.
You now have the foundational knowledge to understand cryptocurrencies, their use cases and competitors.
Crypto trading and investing are not for the faint-hearted. It is an extremely volatile market that can help you make generational wealth or lose your investments.
It’s advisable to learn about how crypto trading works, what happens during the bear and bull runs, gas fees, liquidity on different decentralized exchanges and identify what the best investment strategy is for you.
It’s also wise to start looking into different ways you can make money from cryptocurrencies. You can stake, farm, loan or mine certain cryptocurrencies to earn more. Use your discernment before choosing these methods as numerous cases have proven to either only reward those who have opted in very early or end up being scams.
Soon enough, you’ll see patterns or trends emerge, like how altcoins tend to follow Bitcoin. You’ll also eventually see that the market mostly follows a narrative — whether that’s based on pure hype, utility potential or news.
All in all, the whole blockchain and cryptocurrency space has some way to go until it gets picked up by the masses and becomes something we use and rely on daily.
This is why now is the ideal time to pick it up — we’re early enough to see substantial gains and understand this space enough to be part of the narrative.
There is just so much to learn in the space that it can feel overwhelming at times. Take your time and as long as you understand the foundation, things start to click and the rest just builds right on top of it.
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