Cryptocurrency has surged in popularity over recent years, attracting both experienced investors and newcomers alike. Its allure lies in the potential for high returns and the innovative technology behind it, yet the crypto market also comes with unique risks that can be daunting for beginners.
From market volatility to an array of scams preying on inexperienced investors, understanding these dangers is crucial for anyone considering an entry into the world of digital assets. This guide is designed to help you navigate the basics, stay informed about potential pitfalls, and equip you with the knowledge needed to make safer, more informed decisions in the crypto space.
Always check the contract address of the token or NFT that you are interacting with. Many tokens can be called the same name – only the contract adress is unique
This classic saying in crypto is based around control of your wallet seed phrase or key. Your wallet is secured by 12 or 24 word phrase that ONLY you know. It will never be asked for by legitimate entity or person in the crypto world. If you loose it or forget it, you also lose access to your crypto funds and will be unable to restore your crypto to new wallet to retrieve the funds contained within it.
Please note : Other storage devices are available. Please do your due diligence!
Blockchain is a decentralised, digital ledger that securely records transactions across a network of computers, known as nodes. Each transaction on the blockchain is grouped with others into a “block,” which is then verified and linked to the previous block, creating a chain of records that is tamper-resistant. This system is foundational to cryptocurrency, as it enables the secure, transparent, and trustless exchange of assets without needing a central authority, such as a bank.
Blockchain technology is at the heart of cryptocurrency, as it enables key qualities like security, transparency, and decentralisation that differentiate crypto from traditional financial systems. Here’s why it’s crucial :
Blockchain’s structure makes it inherently secure against tampering. Because each block is linked to the previous one using cryptographic hashing, altering one block would require changing all subsequent blocks across the entire network—a task virtually impossible to accomplish on most public blockchains like Bitcoin or Ethereum. This security is vital to protecting digital assets from manipulation or fraud.
Blockchain creates a public ledger of all transactions, which anyone can view, offering a high level of transparency. This means that all transactions can be tracked from origin to destination, which helps to prevent fraudulent activities. Transparency fosters trust, as users can independently verify transaction records, reducing reliance on intermediaries.
Unlike traditional financial systems controlled by central banks or governments, blockchain is decentralised. This means no single authority has control over the entire network. This decentralisation protects cryptocurrencies from manipulation, censorship, and centralised control, which can sometimes lead to economic instability.
With blockchain, every transaction is permanently recorded, creating a traceable history of transactions for each asset. This traceability is crucial in preventing double-spending (the risk of a digital currency being spent more than once) and contributes to an auditable, immutable record of ownership.
Since the blockchain verifies and records transactions through consensus mechanisms (like proof of work or proof of stake), trust in intermediaries (like banks or payment processors) is no longer necessary. This is especially important in global transactions, where users may not know or trust each other directly but can rely on the blockchain for a fair, transparent record.
Here are the top five issues that crypto investors, particularly beginners, often face:
Cryptocurrency prices can fluctuate wildly within short periods, which can be overwhelming for newcomers. Unlike traditional stocks, crypto markets operate 24/7, adding to the unpredictable nature of price swings. This volatility can lead to rapid gains but also devastating losses if not managed carefully.
While blockchain technology is generally secure, exchanges and digital wallets are not immune to attacks. High-profile exchange hacks have resulted in significant losses, and investors need to be aware of safeguarding their assets with secure storage options, such as hardware wallets.
Scammers frequently target new investors through tactics like phishing, Ponzi schemes, pump-and-dump schemes, fake initial coin offerings (ICOs), and fraudulent “investment platforms.” These scams are designed to take advantage of inexperience and can lead to complete loss of funds.
Cryptocurrency operates in a relatively unregulated environment, meaning investors have less protection than in traditional markets. This lack of oversight can expose investors to greater risks and also allows fraudulent schemes to proliferate with little recourse for victims.
The crypto landscape is filled with technical jargon, diverse asset types, and complex financial instruments. Without a solid understanding of these elements, beginners can make uninformed decisions, fall for hype, or be swayed by misleading information, leading to poor investment outcomes.
These five issues underscore the importance of caution, education, and vigilance for any beginner in the crypto world.
On the face of it, investing in crypto can seem quite daunting, but in reality, it is relatively simple once a basic understanding is obtained. Below we outline the basic steps to get started.
The first step is to download a suitable wallet to secure your crypto. As $APES is based on the SOLANA blockchain, we recommend Phantom wallet to start with.
Download the wallet to your phone and follow the setup instructions to create a new wallet. Write down your seed phase OFFLINE and store it somewhere safe.
Use the wallet or go to one of the Crypto exchanges to obtain some Solana tokens. Solana is the base currency on the blockchain that $APES is created on and allows you to exchange $SOL for $APES. We recommened getting your crypto from crypto.com or coinbase. You can also purchase crypto through the wallet itself.
Be prepared to enter your personal details for KYC (Know Your Customer) that all regulated exchanges need to participate in.