At this point it’s clear that Cryptocurrencies and NFTs are more than just booms. People use them daily, from casual transactions to rigorous investments, while companies capitalize on believes surrounding this new lifestyle. That being said, many more are looking forward to getting started in this sphere in one way or another. This Beginner’s Guide to Cryptos and NFTs is dedicated to the curious newbies that one day might become Insight Beasts.
What are Cryptocurrencies and Non-Fungible Tokens (NFTs)?
Liquidity basically describes the ability to convert assets into cash. The more liquid the asset, the easier to get your hands on cash. An asset with high supply and demand has high liquidity.
Cryptocurrencies are digital currencies, usually designed as decentralized networks based on blockchain technology. Cryptocurrencies are not dependent on any central authority, such as a government or bank, therefore they have high resistance against obtrusion by these parties.
Non-Fungible Tokens (or NFTs) are uniquely identifiable tokens that are non-interchangeable and are stored on a blockchain. NFTs can be sold and traded, and they represent ownership of digital items.
Getting Started with Crypto Wallets
Before thinking about obtaining Cryptocurrencies and NFTs, you should think about Wallets because that’s where you will to store them. Wallets are physical or digital mediums that store your private keys and give you access to your holdings. They also allow you to send and receive both Cryptocurrencies and NFTs.
Hence, you should pick a Wallet first. Some of the most popular Crypto Wallets that also support NFTs and are already integrated in many secondary marketplaces are the following:
After picking a wallet, you should set one up. It’s a very easy process, you just have to follow instructions from the app. Make sure that you store your backup seed phrase safely in one or more places. Otherwise, you might loose access to your wallet and along with that to everything that you have there.
Tips Regarding Wallets:
I strongly recommend that you don’t store everything in one Wallet. Instead, use a couple for various purposes, for example use one or two only for storing, another for general transactions and another for trying out new things. Using a couple can help you avoid dangerous situations and can save part of your assets if such occur.
Never authorize websites and apps that you don’t trust, they can steal all your assets.
Use Burner Wallets for new transactions, especially when minting NFTs.
Obtaining Cryptocurrencies and NFTs
Today it’s easy to obtain both Cryptocurrencies and NFTs. The easiest way to obtain Cryptocurrencies is through exchange platforms such as Coinbase and Binance. Platforms like these usually request KYC (Know Your Customer), a process for verifying the client’s identity.
There are also P2P platforms that usually do not require KYC, however exchange rates are mostly in favor of those who sell Cryptocurrencies. Such platforms are riskier since you are purchasing Cryptocurrencies from someone else, often from an anonymous entity, rather than from a recognized company. Always DYOR.