Crypto Explained for the Average Joe
Ever wondered what this whole crypto thing is about? Well you’re not the only one. From Bitcoin to blockchains, crypto can sound confusing but it doesn’t have to be. Here at Joe Fortune we bring you an easy-to-follow beginner’s guide with all the terminology you need to understand so you can get involved in the world of digital currency without feeling overwhelmed.
What is Crypto?
Let’s start with the basics. Crypto, short for cryptocurrency, is a type of digital money. Think of it like the Aussie dollar, but instead of coins or notes, it exists only online. The big difference and something that is worth understanding is that it’s decentralised. That means no banks or governments oversee it. Instead, transactions take place directly between people and companies, and everything is recorded on a digital system called the blockchain, but there will be more on that later.
Some of the most popular cryptocurrencies you might’ve heard of include:
- Bitcoin (BTC) – the first, most valuable and best-known.
- Ethereum (ETH) – this is used for more than just money.
- Litecoin (LTC) – this is a faster version of Bitcoin.
A Brief History and Timeline of Crypto
Here’s a quick look at how crypto got started:
- 2008, a mysterious person or group called Satoshi Nakamoto wrote a paper explaining what Bitcoin was going to be all about.
- 2009, Bitcoin launched, and the first-ever global digital currency was born.
- 2011, other coins including Litecoin started to pop up.
- 2015, Ethereum brought in smart contracts, this is a term for digital agreements.
- 2020s, Crypto, in particular Bitcoin, really took off in value and usage, with loads of new coins, tech, and ways to spend it.
How Does Crypto Work?
Well, crypto runs on a blockchain, which is a bit like a giant digital notebook. It keeps track of every single transaction, including who sent what to who and this is very secure and transparent.
There are two main ways to keep the blockchain running:
- Proof of Work (PoW) – People called miners use computers to solve puzzles and check transactions. Bitcoin uses this method.
- Proof of Stake (PoS) – People who own coins help run the system by staking them, i.e. locking them up for a while. Ethereum uses this now.
Don’t worry too much about all this techy stuff just know that both are ways to keep things fair and secure.
How to Buy Crypto
Buying crypto is easier than it sounds. Here’s how to get started:
- Pick a Crypto Exchange. This is a website or app where you can buy and sell crypto. Good beginner options include, CoinSpot (very Aussie-friendly), Binance and Coinbase
- Create an Account. Sign up like you would for any online service. You might need to show ID for security reasons.
- Add Some Money. You can use your bank account or digital bank card to deposit Aussie dollars.
- Buy Your Crypto. Choose a crypto coin or more such as Bitcoin or Ethereum, then decide how much you want to buy, and hit the buy button.
- Store It Safely. Keep your coins in a secure wallet. The exchange has one built in, but it’s safer to get your own such as a mobile app or a special USB stick called a hardware wallet.
How to Use Crypto
Once you’ve got some crypto, here’s what you can do with it…
- Spend It! Some online stops for you; online casinos such as Joe Fortune, and even established companies and businesses accept crypto.
- Send It. Send money to mates or family anywhere in the world, it is super-fast and often with lower fees than banks.
- Hold onto It. A lot of people just hold onto their crypto hoping it will go up in value.
- Trade It / Swap It. You can swap cryptos if you think it could be worth more.
- Earn Rewards. Some platforms let you earn extra coins by staking or lending yours.
The Best Cryptocurrencies for Beginners
If you’re just starting out, here are a few easy-to-understand coins to check out:
- Bitcoin (BTC) – The original and still the most popular.
- Cardano (ADA) – Eco-friendly and easy to use.
- Solana (SOL) – Super fast and popular with app builders.
- Ethereum (ETH) – Great for beginners and does more than just payments.
- Litecoin (LTC) – Works a lot like Bitcoin, but faster.
You don’t need to buy a whole coin, and you can start with as little as just ten bucks worth!
The Pros and Cons of Crypto
Like anything, crypto has its ups and downs, here is your quick checklist.
Pros:
- You’re in control. This means no banks and no middlemen.
- Fast and cheap. You can send money quickly and anywhere in the world.
- Privacy. You do not need to give out lots of personal info.
- Lots of options. Hundreds of coins, apps, and uses.
Cons:
- It has been a volatile journey. Prices can go up a lot but also down too in a short period.
- It’s still new. Not everyone accepts it yet.
- You can lose money. So, make sure you know what you are prepared to invest.
- Scams exist. Always double check and be careful, stay safe online.
Security Tips
Crypto is cool and very much in fashion now, but don’t forget that safety is vital for you so here are a few suggestions on how to protect your digital stash:
- Watch out for scams. Never click on dodgy links or trust random messages on social media or via email. Always do your homework before going on a site that you aren’t 100% sure on.
- Use strong passwords and never reuse them across accounts.
- Turn on 2FA. Two-factor authentication adds an extra layer of protection.
- Use a hardware wallet. These are offline and much harder to hack.
- Back up your wallet. Keep your recovery phrase or answer written down and stored in a very safe place without letting anyone know what it is referring to.
The Future of Crypto
The reality is that despite everything you might have heard or read, crypto is only just getting started and here’s what we think is coming in the near future:
· More businesses are using it. From main banks to local grocery shops, more people are getting on board.
· More rules and regs. Governments are working on clearer laws to protect all everyday users.
· Better tech. Faster coins, cheaper transactions, and even smarter apps.
· New stuff. Many more NFTs (Non-Fungible Tokens), DeFi (decentralised finance), and play-to-earn games.
Basically, crypto is changing how we think about money, finances, spending, investing, and even how we use the internet.
FAQs
Is $100 enough to get started in crypto?
Yes! You do not need heaps of cash. Most coins can be bought in small amounts, so even just twenty bucks is enough to get your feet wet and start learning how to buy and sell cryptos.
How does crypto mining work?
Mining is like helping run the system. You use a computer to solve puzzles that check transactions. It’s how new coins like Bitcoin are created, but it’s technical and not really something that beginners need to worry about.
How can I start learning about crypto?
Start by reading crypto guides like this one we have on how to choose the right cryptocurrency for online gambling. You can also check out YouTube videos, crypto blogs, and even Reddit can be good to provide some insights too. Just make sure you stick to trusted sources and take your time.
What’s an NFT?
NFT stands for Non-Fungible Token. That might sound like tech mumbo jumbo, but it’s easy to understand. Non-fungible just means unique for e.g. it’s like a signed footy jersey or a one-of-a-kind piece of art. Token simply means it’s digital, so it lives on the blockchain (just like crypto).
What is DeFi?
DeFi stands for Decentralised Finance. That’s just a fancy way of saying financial services without banks or middlemen. Instead of going through a bank to borrow, save, invest, or trade money, you can do it yourself using crypto and smart contracts. Think of it like this… Traditional finance = banks, fees, paperwork! DeFi = apps on the blockchain, open 24/7, no banks needed.
Can I learn crypto on my own?
Absolutely 100%. Loads of people do. Just go step-by-step, try things out, and most importantly don’t rush. You don’t have to be a tech genius, just be curious and careful.
Is it easy to use crypto at online casinos?
Yes. Many online casinos accept cryptocurrencies and allow you to securely play and withdraw your winnings. Australian’s best online casino, Joe Fortune, offers players the chance to play with a wide range of cryptos.
Keep Building Your Crypto Expertise with Our Guides
Nice one, you have now taken your first step into the world of crypto, and we hope that this has helped you get started. From here, you can keep learning by exploring more beginner guides, watching tutorials, or even joining crypto communities online. The more you read and watch, the more confident you’ll feel managing your digital money.
Need help choosing a wallet? Want to know which coins are hot right now? Or just looking to dig deeper into how crypto works? Stick with us as we’ve got more guides on the way for all that and much more.