You’ve probably come across names like Bitcoin and Ethereum in the past few months, whether in the news, online forums, or casual conversations. That’s exactly how popular cryptocurrencies have become. But despite the hype surrounding these currencies, it’s natural to feel uncertain about investing in digital assets. If that sounds like you, we’ve created this guide that covers everything you need to know about cryptos and how to get started. Keep reading!
Cryptocurrencies Use Blockchain Technology
The first thing to know about cryptocurrencies is that these digital coins use blockchain technology. This technology stores all cryptocurrency transactions in blocks of data distributed across computer networks.
The good thing about blockchain is that the data blocks are interlinked. This means this virtual storage is 100% immutable, enhancing transaction transparency and security. Anyone on the blockchain network can view the data without editing anything.
Crypto Theft is on the Rise
Blockchain technology is one of the safest tech inventions in this century. However, cryptocurrency hacks are soaring, with a report by Yahoo Finance revealing that $1.63 billion was lost to hackers in Q1 of 2025. That’s a massive 131% increase compared to the same time last year.
Thankfully, there are several things you can do to protect your coins. Below are a few tips:
- Create a strong and unique password for your wallet.
- Use hardware wallets whenever possible.
- Activate multi-factor authentication (MFA) to prevent unauthorized wallet access.
- Don’t transact your cryptocurrencies using public internet/Wi-Fi.
- Beware of phishing attacks and how they work.
Investors are on the Rise
If you’re still hesitant about investing in cryptos in 2025, you’re missing out on the latest tech trend in town. A report by Triple-A.io reveals that there are more than 560 million investors worldwide. Impressively, 67% of current owners plan to scale up their investment this year.
Today, you can trade cryptocurrencies as assets or use them to make online payments. Top brands like Tesla, Microsoft, and AT&T already accept Bitcoin payments. You can use an even wider variety of cryptocurrencies when playing casino games at most modern gaming sites.
Below are a few reasons why crypto investors are on the rise:
- Fast payments due to decentralized blockchain.
- Crypto transactions attract minimal or zero fees.
- Businesses can transact with international partners or customers.
- Crypto transactions are available 24/7/365.
There Are 17,000+ Cryptocurrencies
Did you know that there are 17,134 digital coins in existence today? That’s according to the number of digital coins listed on CoinGecko. That’s a significant increase compared to 2013, when only seven digital coins existed.
However, it’s worth noting that not all digital coins are active and valuable. Today, the number of active cryptos is around 10,385 if we discount the “dead” ones. Bitcoin is, of course, the most popular coin, with 95% of investors or holders aware of its existence.
The Crypto Market is Highly Volatile
If you plan to invest in cryptos, it’s critical to understand that the market is highly volatile. The value of these coins can increase or reduce significantly based on developments like government regulations and mining.
For example, Bitcoin went on a bull run after the approval of its spot ETFs in the United States. By the end of last year, this high-value digital coin had already crossed the $100K mark. However, market volatility can sometimes lead to significant losses. Therefore, tracking market activities and movements is vital before making a trading decision.
Cryptos are Legal Tenders in Some Countries
Cryptocurrencies operate in grey areas in most financial jurisdictions. However, some countries have already approved these digital coins, with Canada being among the earliest adopters. The country has a robust crypto ecosystem that allows Bitcoin ETFs. Local banks like RBC and Scotiabank also provide blockchain services to crypto businesses.
Crossing over to the US, it’s just a matter of time before residents adopt cryptos for mainstream transactions. Early last year, the Securities and Exchange Commission (SEC) approved Bitcoin and Ethereum spot ETFs. Most industry analysts believe these are the first steps towards a fully regulated crypto market.
Hardware Wallets are Safer
Cryptocurrency wallets are digital platforms for storing and managing your private keys. These passwords allow investors to access and transact their coins. That said, a wallet could be either hardware (cold) or software (hot). The former is a physical device like a USB or card, whereas the latter is an online storage.
When it comes to securing your coins, the better option is hardware. The thing is that these wallets operate offline, keeping you safe from potential hacks. They become vulnerable only when connected to an internet-connected device. The only drawback is that you must carry these wallets around and can get lost.
Closing Thoughts
Now you have a clear picture of cryptocurrencies. These digital coins are positioning themselves to become the most reliable mode of transaction for the future. However, it’s evident that the crypto industry continues to experience several challenges, such as unclear regulation and unexpected market volatility. Nevertheless, it’s an exciting time to invest in these digital assets.
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