What Is Cryptocurrency? 5 Tips for a Beginner

Many Internet users have heard about cryptocurrencies and that it is possible to make money in the cryptocurrency market. It is easy to become an investor on a crypto crowdfunding exchange and whoever does it multiply his initial capital.

But some do not know what to buy, where to store and how to use it, but at the same time want to become investors, buy a coin and get additional income. Such “investors” quickly lose all their savings and say that cryptocurrency is a deception and an attempt by world freemasonry to fool money from honest people.

Before you use cryptocurrency, you need to understand the basic principles of working with it, know what a crypto crowdfunding platform is and how you can passively earn by investing in cryptocurrency.

What is cryptocurrency: pig in a poke or profitable investment?

Interest in cryptocurrency is growing as the price of bitcoin is storming new heights. Every year, there is another surge in user interest in digital assets. What is a cryptocurrency and can you make money with it?

Cryptocurrency is a digital currency built on the blockchain. On the Internet, you can also find such names for cryptocurrencies as “digital coins”, “crypto”, “virtual money” and other combinations of these words. Bitcoin, launched in 2009, is considered being the king of cryptocurrencies, but at the moment other types of cryptocurrencies are no less promising, for example, the FJT coin.

Cryptocurrency allows you to get passive income for storing coins. However, holding funds on trading floors is risky. They can go offline because of a malfunction, be hacked, and the funds stolen. Crypto crowdfunding sites are a suitable alternative. Here you can not only invest but also earn.

Some Tips for a Beginner

When familiar with cryptocurrency, an inexperienced player can lose all his capital. To prevent this from happening, we offer you a few effective tips.

Cryptocurrency specificity and infrastructure

The first thing to pay attention to is the specificity of the cryptocurrency and the infrastructure. Not all investors will deal with private keys and the functionality of cold or hot wallets, which is fraught with a complete loss of funds, even without the involvement of hackers.

If you want to invest, but are afraid not to understand this system, then now Fuji token has appeared on the market.

Initially, the FJT coin, created on the powerful Tron blockchain, was to be used only to simplify the conduct of business between investors and platform participants. But now the Fuji coin has become more than just a convenient means of payment for investors. To use such a token, you need to download a special application and that’s it.

Easy to use and no math

To get Bitcoin, you need to mine it. Mining is solving complex mathematical problems on computers. Not a thrilled prospect for those who don’t understand higher mathematics, is it? Surely you would like to make money on cryptocurrency, but in an easier way. Fuji solves these problems.

If you have heard about crowdfunding, you should understand that this is a method of obtaining investment for a startup. Fuji is a crypto crowdfunding platform, a full-fledged marketplace with its own economy and system that allows you not only to get investments for the development of a startup but also to get passive income when buying FJT coins.

Make small investments

For a beginner who still understands little about how cryptocurrency works, it is better to invest a small part of the capital. It can be 2–5%. It should be your funds, not credit or borrowed money, the funds that you will lose in case of failure and don’t regret.

Social networks and cryptocurrency

When looking for a cryptocurrency that you can invest in, it is worth paying attention to how often news about this digital money appears on social networks. If we talk about Bitcoin, which is now at its peak of popularity, then you just have to enter this word in a search engine, and hundreds of articles will immediately appear. We can hardly call a cryptocurrency about which we know practically nothing — reliable.

The digital money market is full of pitfalls. You can lose funds when storing cryptocurrency, buying and selling it, making transactions on the exchange and outside it. But this is the right investment if you understand how it works. Investing is a good and correct strategy for a beginner who wants to make money on cryptocurrency.