Everything you need to understand and get started with cryptocurrencies β from scratch to your first purchase. No unnecessary complexity.
Cryptocurrency is digital money that is not controlled by any bank or government. Instead, it is governed by code and a network of computers around the world.
Controlled by central banks. Can be printed in unlimited quantities. Stored in bank accounts.
Decentralised β no single entity controls them. Limited supply (Bitcoin max 21 million). You own your own keys.
With your own wallet you directly own your crypto. No bank can freeze it. But you are responsible for your own keys.
Bitcoin was created in 2009 by the anonymous Satoshi Nakamoto in response to the 2008 financial crisis. The idea β create a payment system without intermediaries: no banks, no governments, no third parties.
Since then thousands of cryptocurrencies have been created with different purposes: payments, smart contracts, decentralised applications, privacy and much more.
π‘ Important: Cryptocurrencies are volatile β the price can change dramatically in a short time. This is normal and part of the market. Never invest more than you can afford to lose.
Bitcoin (BTC) is the original cryptocurrency and still the largest by market capitalisation. It is often referred to as "digital gold".
Created by Satoshi Nakamoto. Nobody knows who this is β a person or group who disappeared in 2010.
There will never be more than 21 million Bitcoin. This makes it deflationary unlike fiat currencies.
New Bitcoin is created through mining β computers solve complex problems and are rewarded with BTC. Halving every 4 years.
Anyone can send Bitcoin anywhere without permission β 24/7, 365 days a year.
Every 4 years the mining reward is cut in half. This reduces supply and has historically led to price increases.
Bitcoin is secured by Proof of Work β a security system requiring enormous computing power to manipulate the network.
Many view Bitcoin as a long-term store of value β like gold, but digital. Major institutions, countries and funds now hold Bitcoin in their portfolios.
Bitcoin is not ideal for everyday payments (slow transactions, high fees under load), but as a long-term savings vehicle it has proven exceptionally strong.
Ethereum (ETH) is more than just a currency. It is a platform for building decentralised applications (dApps) and smart contracts that execute automatically without intermediaries.
A smart contract is a program that automatically executes on the blockchain when predefined conditions are met. Think of a contract that automatically sends money when a product is delivered β no bank, lawyer or middleman required.
Decentralised Finance β loans, trading and savings without banks. All built on Ethereum smart contracts.
Non-Fungible Tokens β unique digital assets: art, music, gaming items, verified on the blockchain.
The next generation of the internet where users own their data and assets instead of corporations.
Bitcoin is primarily a store of value and payment network. Ethereum is a programmable platform, the "world computer", where anyone can build a decentralised application.
π‘ In 2022, Ethereum switched from Proof of Work to Proof of Stake β a more energy-efficient mechanism that reduced energy consumption by approximately 99.95%.
Blockchain is the technology behind cryptocurrencies. It is a distributed database β a chain of blocks that stores transactions in a way that cannot be altered retroactively.
You send crypto to someone. The transaction is broadcast to a network of nodes (computers).
Network nodes verify that you actually own the coins and that everything is correct.
The transaction is grouped with others into a "block" which is cryptographically linked to the previous block.
The block is permanently added to the blockchain. It cannot be modified or deleted β it is immutable.
Transaction complete. Anyone can verify it publicly via a blockchain explorer.
To alter a transaction you would need to control more than 50% of the network's computing power (a "51% attack"). For large networks like Bitcoin this is practically impossible β it would cost billions for minimal gain.
The simplest way is through a regulated exchange. Create an account, verify your identity, deposit money β and buy crypto in a few clicks.
Choose a regulated and reliable exchange. For beginners we recommend Kraken β simple, secure and available across Europe.
Register with your email and a password. Use a strong, unique password not used anywhere else.
Regulated exchanges require identity verification (passport or ID). This usually takes 5β15 minutes.
Activate two-factor authentication (Google Authenticator or similar). Never use SMS-based 2FA β it is vulnerable.
Add money via bank transfer (SEPA) or card. Bank transfers are usually cheaper in fees.
Choose Bitcoin or Ethereum as a starting point. Enter an amount and confirm. Congratulations β you own crypto!
β οΈ Start small: Buy a small amount the first time to get familiar. Crypto can drop 50β80% β this is normal for this market.
Security is the most important thing in crypto. No bank will protect you if you make a mistake β you are your own bank. Learn the common mistakes and how to avoid them.
Your seed phrase (12β24 words) gives full access to your wallet. Never share it β not with "support", not with friends, not with any app. Store it offline on paper.
SIM-swap attacks allow attackers to hijack your phone number. Always use an authenticator app (Google Authenticator, Authy) instead of SMS.
"Not your keys, not your coins." Exchanges can be hacked or go bankrupt (FTX 2022). Keep large amounts in your own hardware wallet (Ledger, Trezor).
Phishing is widespread in crypto. Always double-check URLs. Bookmark exchange addresses. Never follow links from emails.
Buying when everyone is talking about crypto (at the peak) and selling when everything crashes (at the bottom) is the most common way to lose money. Have a plan and stick to it.
Buy a fixed amount every month regardless of price. This smooths out volatility and removes the need to "time the market".
The crypto world has its own language. Here are the most essential terms.
Hold your crypto regardless of price movements. Originally a typo of "hold" that became a mantra.
The highest price a cryptocurrency has ever reached.
Strategy of buying a fixed amount regularly regardless of price β reduces the risk of bad timing.
Financial services (loans, trading, savings) without banks β all automated through smart contracts.
Software or hardware that stores your crypto keys. A wallet doesn't store crypto β it stores keys.
12β24 words that give full access to your wallet. Store offline, never share.
A fee paid to the network to process a transaction. Varies depending on network load.
An exchange like Kraken or Binance. Requires KYC, manages asset custody on your behalf.
An exchange without an intermediary (e.g. Hyperliquid, dYdX). No KYC, you always control your keys.
Bull market = rising prices and optimism. Bear market = falling prices and pessimism.
All cryptocurrencies except Bitcoin: Ethereum, Solana, Hyperliquid and thousands of others.
Research everything yourself. Never blindly trust someone else's advice β always verify independently.
