A Beginner’s Guide to Crypto & Bitcoin: What’s the Hype All About?

*Disclaimer: This post is for people who are not familiar with crypto and want to understand what it is.

Symbol for Bitcoin

So you’ve heard of Bitcoin, maybe even Ethereum, and you're wondering, "What is this crypto thing, and should I care?" The short answer: It’s digital money that doesn’t need a bank, and yes, you probably should care. Let’s break it down.

What is Blockchain?

Imagine a public diary where everyone can see the entries, but once something is written, it can’t be erased or changed. That’s blockchain. It’s a decentralized, transparent, and tamper-proof ledger that records transactions. Every time a transaction is made, it gets verified by a network of computers (instead of a single bank) and added to a “block.” Once enough transactions fill the block, it gets added to the “chain.” Hence, blockchain.

How is it Different from the Current Financial System?

Feature	Traditional Banking	Blockchain & Crypto
Centralization	Controlled by banks/governments	Decentralized, no central authority
Transactions	Can take days (especially cross-border)	Near-instant, depending on the coin
Transparency	Limited transparency	Fully public ledger (except for privacy coins)
Fees	Can be high, banks charge for transfers	Lower fees, especially for large transactions
Accessibility	Requires a bank account	Anyone with internet can participate

Applications of Blockchain Beyond Crypto

Blockchain isn’t just for buying weird internet coins. It can be used for:

• Supply chain tracking: Ensuring products are genuine and tracking their journey.

• Voting systems: Secure and transparent elections.

• Smart contracts: Self-executing agreements (e.g., “Release payment only when shipment arrives”).

• Digital identity: Securing personal information without relying on governments or big tech.

Pros & Cons of Blockchain

Pros:

✅ Decentralized – no single point of failure. ✅ Transparent – anyone can verify transactions. ✅ Security – difficult to hack or manipulate. ✅ Low fees – compared to traditional banking. ✅ Fast transactions – especially across borders.

Cons:

❌ Scalability issues – Bitcoin can only handle ~7 transactions per second. ❌ Irreversible transactions – if you send funds to the wrong address, they’re gone. ❌ Complexity – not exactly beginner-friendly. ❌ Energy consumption – Bitcoin mining requires a lot of power. ❌ Regulation uncertainty – governments are still figuring out how to handle it.

Major Crypto Exchanges

If you want to buy or sell crypto, you need an exchange. Here are the big players:

• Binance (Largest exchange by volume)

• Coinbase (Best for beginners)

• Kraken (High security, solid reputation)

• KuCoin (Lots of altcoins available)

• Gemini (Regulated and beginner-friendly)

• Bybit (Good for derivatives trading)

• Crypto.com (User-friendly with a good app)

Ways to Store Crypto Coins

Your crypto needs a safe place to live. Here are your options:

1. Hot Wallets (Connected to the Internet):

   • Mobile wallets (Trust Wallet, MetaMask)

   • Desktop wallets (Exodus, Electrum)

   • Web wallets (Crypto.com, Coinbase)

2. Cold Wallets (Offline Storage):

   • Hardware wallets (Ledger Nano, Trezor)

   • Paper wallets (Literally writing your private key on paper – old school but effective!)

3. Custodial vs. Non-Custodial Storage:

   • Custodial: Exchanges like Binance & Coinbase hold your funds (easier but less control).

   • Non-Custodial: You hold your private keys (safer but requires responsibility).

Most Popular Cryptocurrencies & Their Fundamentals

1. Bitcoin (BTC) – The OG

• Purpose: Digital gold, store of value.

• Strengths: First mover, most secure, deflationary.

• Weaknesses: Slow transactions, high fees.

2. Ethereum (ETH) – The Smart Contract King

• Purpose: Decentralized applications (DApps), smart contracts.

• Strengths: Largest ecosystem for decentralized finance (DeFi) and NFTs.

• Weaknesses: High gas fees (though improving with upgrades like Ethereum 2.0).

3. Binance Coin (BNB) – Exchange Powerhouse

• Purpose: Used in Binance ecosystem for trading discounts & DeFi.

• Strengths: High adoption due to Binance’s dominance.

• Weaknesses: Centralized, meaning Binance controls a lot of its supply.

4. Solana (SOL) – The Fast One

• Purpose: High-speed smart contracts and decentralized applications.

• Strengths: Very fast (65,000 transactions per second!), low fees.

• Weaknesses: Network downtime issues, not fully decentralized.

5. XRP (XRP) – The Bank-Friendly Crypto

• Purpose: Fast and cheap international transactions.

• Strengths: Adopted by banks and financial institutions.

• Weaknesses: Highly centralized, ongoing SEC lawsuit.

6. Cardano (ADA) – The Academic One

• Purpose: A highly secure and sustainable blockchain.

• Strengths: Peer-reviewed development, energy-efficient.

• Weaknesses: Slow development, fewer projects compared to Ethereum.

7. Dogecoin (DOGE) – The Meme Coin

• Purpose: Started as a joke but became widely adopted.

• Strengths: Low fees, strong community (Elon Musk loves it).

• Weaknesses: No real use case beyond tipping and fun.

8. Polygon (MATIC) – Ethereum’s Sidekick

• Purpose: Scaling Ethereum by making transactions faster and cheaper.

• Strengths: Solves Ethereum’s congestion issues.

• Weaknesses: Still depends on Ethereum’s success.

Final Thoughts

Crypto is exciting, but it’s also volatile and unpredictable. If you’re interested, start small, do your research, and never invest money you can’t afford to lose. Whether it’s the future of money or a financial bubble, one thing’s for sure – it’s changing the way we think about money.

Welcome to the rabbit hole