Crypto 101: A Beginner's Guide to Cryptocurrency in the UK

Article by Sybil - Published: 29/01/2023

First things first, what exactly is cryptocurrency? In simple terms, it's a digital or virtual currency that uses cryptography for security. Bitcoin is probably the most well-known cryptocurrency, but there are thousands of others out there.

So, how do you get your hands on some cryptocurrency? There are a few ways to do this in the UK. One way is to buy it on a cryptocurrency exchange. These are online platforms where you can buy, sell, and trade different types of cryptocurrency. Some popular exchanges in the UK include Binance, Coinbase, and Kraken.

Another way to acquire cryptocurrency is through mining. This is the process of solving complex mathematical problems in order to validate transactions on a blockchain (which is the technology that underlies most cryptocurrencies). It's a bit more technical and requires specialised equipment and knowledge, but it can be a fun and rewarding hobby for tech enthusiasts. For the more tech-savvy individuals, there is also the option of running a full node on the network, this allows you to validate your own transactions, and also gives you a bit more control over your coins and the network in general. But keep in mind that this is a very technical process and also requires you to have a good understanding of the underlying technology and its mechanics.

Once you have some cryptocurrency, you can store it in a digital wallet. This is a secure place to keep your digital assets and can be accessed through your computer or smartphone.

Now, you may be wondering, what can I do with my cryptocurrency? Well, you can use it to make purchases online or in some physical stores that accept it as payment. You can also trade it for other types of cryptocurrency or for fiat currency (like pounds or dollars). Some people even use it as an investment, hoping to make a profit as the value of the cryptocurrency increases.

It's worth noting that the value of cryptocurrency can be very volatile and there is a risk of losing your investment. As with any investment, it's important to do your own research and invest only what you can afford to lose.

Another thing to keep in mind is that cryptocurrency is not currently regulated in the UK, so it's important to be cautious and protect yourself from fraud. Make sure you only use trusted exchanges and keep your digital wallet secure.

So there you have it, a basic overview of cryptocurrency in the UK. It can be a bit overwhelming at first, but with a little bit of research and caution, it can also be a fun and exciting way to be a part of the digital revolution.