These days, it is virtually impossible to escape the influence of cryptocurrency. Once a niche asset class, it is now used by people all over the world and, thanks to its myriad benefits, doesn’t seem to be going anywhere.

If you’re looking to get involved in cryptocurrency or already use the asset class, you’re best off becoming more educated about it. Knowing as much as possible about cryptocurrency means you make better investment decisions, are less likely to enter any pitfalls, and you’ll have a better experience. Here are a few things to learn as a crypto user:

The Different Types Of Tokens

Cryptocurrency, as a term, is very all-encompassing and includes many different token niches. The tens of thousands of crypto tokens in the world can be categorized as meme coins, traditional cryptos, utility tokens, stable coins, and so on. All of these token categories have their unique characteristics and benefits, and before you go about investing in or using any of them, you should know what they are. Being able to tell a meme coin from a utility token will save you from wasting your time, energy, and money. On top of this, it also helps you identify the best of each group.

Every crypto category has the tokens that dominate and those that offer the most benefits to users. As such, you should also seek to find out the best tokens from each category, as this will guide your investment decision and overall attitude. For example, crypto writer Tony Frank recently wrote an article about the best crypto meme coins to buy. Reading this sort of article will explain not just a bit about meme coins themselves, but also the ones you should put your money into.

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Current Cryptocurrency Laws

Cryptocurrency, like any asset class, is subject to the law of the land. As a crypto user, you need to learn what the laws are both in your own country and around the world. This will help you avoid any legal issues regarding your cryptocurrency use. For example, cryptocurrencies are outright banned in China but are fully accepted in the United States. Simply knowing this will save you from getting on the authorities’ bad side with your crypto use.

Knowing cryptocurrency laws in your own area will also inform you of your tax responsibilities. Cryptocurrencies are taxed differently depending on the country or region, and knowing the law means that you will pay the correct tax. A cryptocurrency law knowledgeable will also inform you of its ongoing trajectory. If the government is passing more pro-crypto laws, it could signal greater acceptance in the public sphere and thus, good news for crypto investors.

Common Blockchain Terms

Cryptocurrency is based on blockchain technology, as many of us will know. Even if you are not a blockchain developer or heavily invested in the technical side, you need to know certain blockchain terms before you proceed. Knowing what a proof-of-work consensus is, for example, will let you know how different tokens operate and thus, how you should engage with them. Understanding what a 51% attack is arms you as a crypto user to not be exploited and also notice warning signs as they happen. Hash rates, halvings, mining pools, and other such terms should be at your fingertips because it means that crypto-related conversations will make more sense to you, and you’ll be able to make intelligent decisions off the bat. In the same way that you wouldn’t place your money in a business you had no insight into, you should not try to operate as a crypto investor without knowing any of the common blockchain terms.

Types Of Crypto Scams

Unfortunately, cryptocurrency is targeted by nefarious actors, as is the case with any business that is worth a lot of money. Scammers try different methods to take advantage of victims, and these change all the time. As such, as a crypto investor, you need to know about the different types of scams. Knowing about pig butchering, the issue of cryptojacking, wallet hacks, phishing schemes, and so on means that you can tell how they operate and are less likely to fall victim to them. A lot of people who succumb to crypto scams are those who haven’t heard of them before, and thus, don’t know what to look out for. Read crypto-related publications often, as they will report on the latest scam tactics and thus inform you on how to avoid them.

Crypto Investment Methods

As a newer crypto investor, it is easy to assume that speculative trading is the only way you can make money from cryptocurrency. After all, that is the most common form of crypto investment. The truth is that the crypto world has so much more to offer in terms of investment opportunities. There is staking, which is very low risk, though it doesn’t promise very high rewards. There’s token mining, which offers decent rewards but can be very energy-intensive. There’s yield farming, lotteries, lending, liquidity farming, and so on. There are so many ways to make money off cryptocurrency, and each comes with its own level of risk, potential reward, investment requirements, and so on. Knowing all these methods means that you won’t be pigeonhole and can instead choose the type of crypto investment that most appeals to you.

Crypto Services Available

As a crypto user, there is a myriad of services that can make your journey much easier. Did you know that there are entire services dedicated to storing crypto on behalf of investors who don’t want to deal with the hassle themselves? There are also dedicated services for crypto investors who want to stay on top of their taxes. There is no shortage of crypto-related services, but you can’t take advantage of them if you don’t know about them. Keep yourself up to date with the latest crypto services and watch your journey become much easier.

General Crypto News

One of the beauties of the crypto space is that it is never static. Every other month or year, something new happens. Whether it’s a new law being passed, a new token making waves in the industry, or anything else, there is always something happening. Make sure you stay abreast of all the crypto developments, as these will make you a more informed investor both in the short and long term. Following the progression of a crypto-related law means you’ll know ahead of time how you might be impacted. Knowing about new tokens gaining attention means you can invest early if needed. Either way, no one should attempt their crypto journey with no guidance, and this is where news comes in.

Conclusion

The crypto industry is very complex, but it can be easier to navigate if you have the right knowledge. As we’ve noted in this article, there are different things that you should know about the crypto sector, whether it’s technical things or developments within it. By having this knowledge at your fingertips, you’ll be a more empowered and more informed investor, and you are more likely to gain positive outcomes from your crypto journey.