Crypto Beginner's Guide:
The Wallet:
A wallet is made up of two things:
1. A Public Key (which you give out to people so that they can send you crypto).
2. A Private Key (which you NEVER give out. This is to transfer your crypto).
Pro Tip: It is highly recommended that you write down / print your Private Key and store it in a safe place.
A Public Key / Private Key is simply a string of text. For example, this is the Public Key for my Bitcoin tip jar:
339B8J6MjUQVsKYw6kQUmJBJn4PFPGvHhA
A wallet is needed for each cryptocurrency you wish to own or conduct a transaction with. So, if you want to buy or sell Bitcoin, you need a Bitcoin wallet. If you want to buy or sell Ethereum, you need an Ethereum wallet, and so on and so forth.
Obtaining A Wallet:
With the exception of hardware wallets, such as the Ledger Nano S, wallets are FREE.
There are many ways to obtain a wallet, but we'll go over the easiest ways for beginners:
1. Signing up with a Cryptocurrency Exchange: When you sign up with an exchange, they will provide you with a wallet so that you can buy/sell/send/receive cryptocurrency.
Pro Tip: it's recommended that you do NOT store your cryptocurrency with an exchange, especially if you plan to purchase a significant amount of crypto.
2. A Software Wallet: simply download a program, such as Exodus, install it, and it will provide you with a wallet for various cryptocurrencies. The private key is stored on your computer and you can perform backups (recommended) and restore in case you have to reformat your computer or reinstall the program.
3. Purchase a Hardware Wallet: this option is highly recommended for people who plan to purchase a lot of crypto. With a Hardware Wallet, your private keys are stored on the physical device. In order to send crypto, the hardware wallet must be connected to the computer. The aforementioned affords you the maximum security possible. There are many hardware wallets. One such wallet is the Ledger Nano S and it costs $100 as of this writing.
Receiving Crypto:
To receive crypto, all you need is a wallet for that cryptocurrency. Once you obtain a wallet, you copy the Public Key (a string of text) and send it to whoever you want.
Sending Crypto:
The same concept of receiving crypto applies here. Someone provides you with their Public Key for a particular cryptocurrency, then, assuming you have a wallet for that crypto funded, you use your wallet software to enter their Public Key along with the amount in crypto you want to send them, and then click "Send" (or something similar).
Buying/Selling Crypto:
Most likely, you will want to convert your Fiat currency (Dollars, Euros, Pounds, etc) into a cryptocurrency of your choice.
There are privacy-minded ways to purchase cryptocurrency, which we'll go over in a future article, but for now, we'll go over the common way.
In order to buy or sell cryptocurrency, you must sign up with an exchange. Here's a quick breakdown of what is needed:
1. Pick an exchange of your choosing (Coinbase.com, Kraken.com, etc)
2. Sign up like you would with any website. Note: once you sign up, the exchange provides a wallet for you automatically for free.
3. Provide Identification and Proof of Residence. The most common of the two are a Driver's License and a Bank Statement.
4. Choose your funding method. This can be your Bank Account, Debit Card, or Credit Card. Credit Cards and Debit Cards tend to be the fastest methods.
Once you've completed all the steps, simply click the cryptocurrency of your choice, enter the amount in Fiat currency that you wish to purchase, and click on "Buy" (or something similar).
That's pretty much it. We hope you enjoyed this beginner's guide and, if you found it useful, be sure to like and repost!
