Getting Started with Cryptocurrency: A Beginner's Guide for Beginners

Cryptocurrencies are digital assets that can be transferred without the interference of third parties. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the actions they should take next.

Bitcoin

is still the largest cryptocurrency by market cap, but it's no longer as dominant as it was in the early days of cryptocurrency.

Other alternative currencies such as Ethereum and Solana have grown in popularity, making the term altcoin somewhat outdated. Now that there are reportedly 15,000 cryptocurrencies or more, it makes less sense than ever to define the industry as “Bitcoin and then everything else.”Cryptocurrencies must be purchased through an exchange or investment platform, such as Stash. Some factors you can consider when selecting an exchange are security, fees, trading volume, minimum investment requirements, and the types of cryptocurrencies available for purchase on a given exchange. If you're interested in investing in cryptocurrency, there are a few different ways to go about it.

You can buy cryptocurrency directly through an exchange or broker-dealer, invest in cryptocurrency funds or companies, or use a platform like Stash to purchase cryptocurrency with a few clicks. When selecting an exchange to buy cryptocurrency from, it's important to consider security, fees, trading volume, minimum investment requirements, and the types of cryptocurrencies available for purchase on a given exchange. It's also important to remember that convenience comes at a cost - beginner-friendly options often charge substantially more than it would cost to buy the same cryptocurrency through each platform's standard trading interface. For beginners who want to start trading cryptocurrency, the best advice is to start small and use only the money you can afford to lose. Investing in cryptocurrency can be a great way to diversify your portfolio and take advantage of one of the newest and most ingenious asset classes available. Take our 3-minute questionnaire and talk to an advisor today to learn more about how you can get started with cryptocurrency.