Crypto starter pack: Facts every beginner should know

Crypto is a virtual asset that works without the need for middlemen like banks. It uses a blockchain that acts as a public ledger to secure and track transactions. 

Key takeaways

• Some of the interesting facts about cryptocurrency are that it’s an innovative tech, it requires a crypto wallet, it’s regulated in many countries, and it offers various perks.
• You can use crypto as a secure and fast payment option when playing your favourite casino games like slots. 

Navigate the crypto world easily with these must-know crypto facts:

Crypto is an innovative tech

Crypto is more than just a virtual currency. It's a transformative tech that is reshaping how the world handles money, transactions, and financial systems. Unlike fiat currencies, crypto operates on decentralised networks, using blockchain tech. 

This means no central authority governs or controls transactions, enhancing transparency and reducing the risk of fraud. Crypto also allows seamless cross-border transactions without currency conversion fees or delays, making it easier to transact globally.

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There are different types of cryptocurrencies

Cryptocurrencies come in various forms, each serving different uses and features. Here are some of the most popular types of coins in the market: 

• Bitcoin (BTC) → Launched in 2009, Bitcoin is the first and biggest coin by market cap. It’s one of the most adopted crypto, offering secure and fast transactions.
• Ethereum (ETH) → ETH is an open-source blockchain platform that allows the creation and execution of smart contracts and decentralised applications (dApps). It supports various token standards such as ERC-20 for fungible tokens and ERC-721 for non-fungible tokens (NFTs).
• Tether (USDT) → USDT is a stablecoin that is pegged to the value of a fiat currency, offering a stable value. It’s one of the most traded coins by volume, making it highly liquid and easy to buy, sell, and trade on various exchanges.
• Ripple (XRP) → XRP was created mainly to aid fast and cost-effective global payments. Its transactions are processed quickly within 3 to 5 seconds, making it one of the fastest coins for transferring value.
• Binance Coin (BNB) → This is the native crypto for Binance Exchange, one of the leading crypto exchanges in the world. BNB is used to pay for trading fees on the Binance platform, allowing you to receive discounts.
• Cardano (ADA) → ADA is a blockchain platform that uses a proof-of-stake (PoS) mechanism known as Ouroboros. These are more energy-efficient than proof-of-work (PoW) systems, allowing secure and scalable transaction confirmations.
• Solana (SOL) → This is a high-performance blockchain platform designed for dApps and crypto projects. SOL can process thousands of transactions per second (TPS), making it one of the fastest blockchain platforms in the industry.
• Dogecoin (DOGE) → DOGE started as a meme based on the Shiba Inu dog meme. Unlike BTC, which has a capped supply, DOGE has an unlimited supply, with new coins being created through mining at a fixed rate.
• Tron (TRX) → TRX is designed to provide high throughput, scalability, and low transaction costs. It’s also compatible with other blockchain platforms, enhancing the integration of various blockchain assets. 

Crypto offers plenty of benefits

Crypto is taking the world by storm due to the wide range of benefits it offers. These include: 

• Privacy → Crypto transactions are private since they aren’t governed by banks that require your sensitive info. This means you don’t have to share info like your name or address.
• Security → Coins like BTC use cryptography to secure transactions and control the creation of new units. They use public and private keys which are important for secure transactions.
• Transparency → Crypto transactions are recorded on the blockchain, which is a decentralised ledger that records all transactions across a network of computers. This provides transparency and prevents tampering.
• Convenience → With an internet connection, you can send and receive crypto anytime, anywhere. It’s also easy to manage your money with just a smartphone or computer.
• Low fees →  Crypto has lower transaction fees compared to banks. This means you keep more of your money when you send or receive funds.
• Fast transactions → Crypto transactions are completed quickly, sometimes within minutes. This is because you don’t have to wait for banks to process your payments.

You need a crypto wallet to hold your coin

A crypto wallet allows you to store your coins, send and receive crypto, and track your balances. Unlike other wallets, they don't hold physical coins but rather store the public and private keys needed for transactions. There are two main types of crypto wallets. These include: 

• Hardware wallet → These wallets are physical devices that securely store your private keys offline, providing a high level of security against hacking. They are ideal for long-term holders or large amounts of crypto. Popular options include Ledger and Trezor.
• Software wallet → Software wallets are apps or programs that can be installed on a computer or smartphone. They are categorised into:
  • Desktop wallets → Installed on a desktop computer, providing easy access but requiring regular security updates.
  • Mobile wallets → Apps on smartphones, making it convenient for daily transactions.
  • Web wallets → These are accessed through a web browser, offering convenience but often at a higher security risk.

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BTC has a limited supply

BTC has a maximum supply of 21 million coins. This cap is hardcoded into the BTC protocol and cannot be changed. As of now, over 19 million BTC have already been mined.

Crypto also has its cons

While crypto offers many pros, it also comes with cons you need to consider. These include: 

• Volatile investment → The crypto industry is known for its volatile nature. Factors such as news events, and market sentiment influence crypto prices. This causes prices to fluctuate within short periods, leading to major gains or losses.
• Lack of regulation → The crypto market is still unregulated in some jurisdictions. This lack of oversight leads to uncertainty, as laws can change rapidly.
• Fraud potential → The rise of crypto has led to an increase in scams and phishing attacks. If you’re new to crypto, it’s easy to be a target of these fraudulent activities.

BTC’s inventor is unknown

BTC was created by a pseudonymous Satoshi Nakamoto. Satoshi first introduced BTC in a white paper titled ‘Bitcoin: A peer-to-peer electronic cash system’ published in 2008. By 2011, Satoshi had ceased contact with the BTC community, leaving behind a lasting legacy but no clear identity.

More than 15 thousand companies accept crypto as a payment method

One of the standout facts of crypto is that more than 15,000 companies worldwide now accept coins like BTC as a payment method. This milestone highlights the growing acceptance and integration of crypto into mainstream commerce.

There’s a huge difference between earning and buying BTC

When it comes to acquiring BTC, some may not realise that there’s a difference between earning and buying it. Knowing this distinction is crucial to navigating the world of crypto effectively.

Buying BTC involves purchasing it through various platforms including exchanges like Coinbase, Binance, or Kraken. On the other hand, earning BTC is all about acquiring BTC through activities that generate value such as mining. 

Mining for BTC requires 9 to 13 years of household electricity

One of the most striking facts about cryptocurrency is that BTC mining often uses the equivalent of 9 to 13 years of household electricity for a single BTC. This highlights the huge energy demands that come with the process of mining, which is crucial for confirming transactions and securing the BTC network.

Crypto is regulated in many countries

As crypto becomes more popular, more countries are carrying out regulations to govern their crypto use and trading. This builds trust and fosters a secure environment for crypto users while also addressing concerns related to fraud, money laundering, and consumer protection.

You can use crypto for casino gaming

One of the exciting developments in the world of crypto is its integration into the online casino industry. Many licensed online casinos like Gamdom now accept crypto as a secure payment option, providing new ways to enjoy your favourite games.

There are over 1.1 million ETH transactions per day

The ETH network has over 1.1 million transactions each day, showcasing its widespread usage and popularity among users and developers. One of the reasons for this is that ETH pioneered the concept of smart contracts.

These are self-executing contracts with the terms directly written into code. This feature governs a wide range of apps, leading to increased transaction activity.

Frequently Asked Questions about crypto

Do you still have questions about crypto? Learn more about it with these FAQs:

Is crypto safe?

Crypto is safe but also has risks. Make sure to use secure wallets and keep your private keys secure. It’s also crucial to research before investing.

Can I lose money in crypto?

Yes, the value of crypto can go up and down a lot. You can earn a profit but lose funds as well.

What can I do with crypto?

You can use crypto to buy goods and services, play games, trade it for other coins, or hold it as an investment.

Crypto is an amazing investment and is also a secure payment option to play online casino games at Gamdom hassle-free. Just make sure to use a secure wallet, research more interesting facts about cryptocurrency, and choose the best coin that caters to your needs and preferences. 

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