With this article, we at Made would like to give you some valuable tips on how to get started in the world of cryptocurrencies.

The first thing you need to think about is: why?

The answer to this question will probably influence your success either positively or negatively.

This is because, unlike a few years ago, today’s approach to cryptocurrencies necessarily requires accepting a risk.

Whereas in the past, it was possible to study this phenomenon completely free of charge and almost risk-free, perhaps by buying a USB stick to mine and play with the first cryptos.

How to get cryptocurrencies today

Nowadays you almost have to register on an exchange, provide all your details and make an online payment, just to be able to own some.

It is by no means the only way, but it is the easiest if you don’t have a friend who can give you some cryptos maybe in exchange for a pizza.

Buying a miner today can mean spending a thousand euros and finding yourself with crazy electricity bills, it is a path that we absolutely do not feel like recommending today, especially in Italy.

There are also ATMs here and there all over the country from which you can buy crypto without too much difficulty.

Or, just to top it off, there are online faucets, through which it is still possible to obtain small amounts of currency in exchange for exposure to advertisements for a few seconds.

How to store cryptocurrencies

Almost immediately, the question arises as to how to store them. If you find yourself buying them on an exchange, the problem does not immediately arise as a wallet service is also offered in conjunction with the purchase.

For all other cases, however, you need to understand what a wallet is, how it is used (click here) and which one to choose.

Lastly, there are also wallets that can be installed and used on smartphones, one of the most talked about in recent times being the Chivo (click here), specially developed on commission by the government of El Salvador for widespread distribution in its territory.

Much discussed as it is the first real official and tested wallet for an entire nation, albeit produced in Spanish, but technically easy to use and freely usable by anyone in the world.

The main difference is the adoption of Lightning Network natively, effectively making bitcoin transactions almost free as well as instantaneous.

What is the Lightning network?

Essentially, it is the solution to a technical and economic problem that arose after the first years of bitcoin’s spread.

Namely, the cost of sending transactions and the time it takes to confirm them.

It is therefore an external solution to the bitcoin blockchain, called layer 2, which complements and in a sense bundles multiple transactions into a single one.

Thus drastically dividing costs and reducing the confirmation time of each individual transaction to a few seconds.

Which and how many cryptocurrencies?

Returning to the initial question of ‘why’, it is important to understand the need that drives you towards this sector.

As of the date of this writing (22 November 2022), there are in fact 21,829 blockchains, tokens and stablecoins within the cryptocurrency sector, source coinmarketcap.

So it is vital to carefully understand the reasons that bring you into this sea to avoid being shipwrecked.

The Blockchain

Initially, blockchains were categorised according to the encryption algorithm used in encoding the data chain, but today it is probably more appropriate to adopt other criteria.

Today, in fact, two macro-categories can be distinguished, namely blockchain PoW (proof of work) and PoS (proof of stake), which determine the way in which information on the chain is guaranteed and new coins minted.

In addition to the way in which information is guaranteed, there is finally another important distinction, namely between blockchains that offer the writing of smart contracts and those that do not.

What are Smart Contracts

Smart contracts are bits of code transcribed within a blockchain transaction, which confer a certain intelligence in the handling of a given function.

In summary, they are the lego bricks at the heart of DeFi.

Smart Contracts have given birth to nine additional crypto sectors, such as Tokens, Stablecoins and NFTs.

Thus giving rise to an increasingly complex ecosystem, rich in possibilities and speculative opportunities.

But it is also full of dangers and scams that are increasingly complex and from which one must be well guarded. The best way to guard against this is to know as much as possible.

So have a clear understanding of the technical terms used and which you may come across as well as an ability to describe, at least mentally, the composition of this ecosystem.

Possible answers to the question

In an attempt to anticipate what might be driving you in this area, we will try to hypothesise what might be the answers.

– Curiosity

If your motivation is curiosity, then it is important to study as many technical elements as possible in depth, without limiting yourself to the study of Bitcoin. Therefore, delve into all the types of blockchain, the modalities, the potential and get to imagine everything that could be the future of this disruptive technology.

– Speculation

There is nothing wrong with that, profiting is the basis of business, it is however important to understand the financial role that each macro area of the crypto ecosystem plays. Bitcoin in this case can be seen as the backbone, an ideal safe haven asset for long-term investments. The other blockchains can be seen as speculative assets while the tokens as highly risky but equally lucrative securities.

– Jobs

Finally, you may have to deal with this topic for work-related matters, in order to receive and send cryptocurrency from customers or to suppliers. Hence the need to know in great depth all the ways in which a crypto transaction can be performed.

Whatever the reason that drives you towards this topic, we at Made are here to help you resolve any doubts you may have.