What is Crypto?
Think of cryptocurrency as digital cash. It’s a form of money that exists entirely online.
The key difference is that it isn’t controlled by a central authority like a bank or government. Instead, it runs on a technology called blockchain, which is like a public ledger shared across thousands of computers. This is what makes it secure and transparent.
You can use crypto for two main things:
- Spending: To buy goods and services, just like regular money.
- Investing: To hold as an asset that you hope will increase in value over time, similar to stocks.
The Golden Rule of Crypto: With crypto, you are your own bank. This gives you incredible control, but it also means you are responsible for your own funds. There are no “forgot password” buttons or fraud departments to call for a refund. Getting your setup right before you buy is the key to a safe and successful journey.
Ready to begin? Here’s our simple 6-step path to getting started safely.
1. Define Your ‘Why’
Before you invest, ask yourself: what is my goal? Are you looking to save for the long term (like planting a tree and letting it grow), or are you more interested in shorter-term trading?
Also, decide on a budget. A smart rule for beginners is to only invest what you would be okay with losing. This helps you learn without taking on too much risk.
2. Choose a Crypto Exchange
A crypto exchange is a marketplace where you can buy, sell, and trade cryptocurrencies using regular money (like New Zealand Dollars).
To get started on a trusted platform, you’ll usually need:
- ID Verification (like a driver’s license or passport)
- Proof of Address
- A secure email address
- 2FA (Two-Factor Authentication) for security. This is a code from an app on your phone that acts as a second password to keep your account safe
3. Set Up Your Crypto Wallet
A crypto wallet is where you’ll store your crypto after you buy it. Think of it like a digital bank account where only you have the password.
For long-term investing and better security, many people use a cold wallet (or hardware wallet). This is a small physical device that keeps your crypto completely offline, making it the safest way to store it.
4. DYOR (Do Your Own Research)
The crypto world is full of exciting projects, but also scams. “DYOR” is a popular phrase that means taking the time to understand what you’re investing in before you put money into it. A few hours of research can protect you for years to come.
5. Make Your First Purchase
Congratulations, you’ve done the preparation! Now it’s time for the exciting part. Head back to the exchange you chose in Step 2, select the cryptocurrency you researched, and make your first purchase. Start small to get comfortable with the process.
6. Stay Secure for the Long Term
Keeping your investment safe doesn’t stop after you buy. Make it a habit to regularly review your security settings, use strong and unique passwords, and be cautious of unsolicited messages or “too good to be true” offers.