What do I need to know about crypto to get started?

TL;DR 

• Cryptocurrency is a decentralized digital currency secured by a blockchain, a network of computers that verify and record transactions in linked blocks.

• They offer many opportunities, from earning rewards to borrowing/lending and more.

• With Valora, you can easily access and navigate the world of cryptocurrencies, all with a few taps on your smartphone.

What do I need to know about crypto to get started?

The world of cryptocurrencies has grown into a complex landscape that can seem overwhelming to anyone new. 

But don’t worry! Valora is here to help.

Whether you're just curious or ready to dive in, this guide will help you break down the basic parts of crypto, making it understandable for anyone who wants to learn more.

Get ready to take your first steps into the crypto world, and be confident that you'll be starting off on the right foot.

A simple description of what is a cryptocurrency

A cryptocurrency is a new form of decentralized digital currency secured by a decentralized ledger called a blockchain. 

A blockchain is a public digital ledger of transactions that are verified across a network of computers called nodes.

Each block contains all past transactions and is linked to the previous one, forming a chain, hence the name blockchain. 

Cryptocurrencies offer several benefits, including:

• Transparent: All users can view the entire ledger’s history at any time. 

• Secure: Transactions are recorded on the public ledger and can not be altered or deleted.

• Decentralized: A blockchain is decentralized because no central authority controls it, but rather a network of nodes.

These features provide an open and stable system where digital currencies can freely exist and function without the control of a central company or party.

From Bitcoin to thousands of other cryptocurrencies

Bitcoin, a pioneer in the cryptocurrency world, opened the floodgates for a new kind of digital asset all the way back when it was launched in 2009. Since then, it has inspired an entire ecosystem of cryptocurrencies with specialized functionalities.

Whereas Bitcoin was initially conceived as a form of digital gold, newer cryptocurrencies, often referred to as altcoins, have ventured beyond this core concept  to fill various niches of the new cryptocurrency world.

One of them is Ethereum, a blockchain and cryptocurrency whose goal was becoming a platform for smart contracts. These are self-executing contracts enabling the creation of a plethora of decentralized applications called dapps.

Following in Ethereum's footsteps, platforms like Celo have emerged, improving upon its features and focusing on being a platform for more specialized use-cases such as regenerative finance.

Celo – A scaling Ethereum platform with real-world solutions

Among the various blockchains out there, some are designed with specific, practical use cases such as Celo.

Celo is a platform that enables real-world solutions to bring economic opportunity for billions of people around the world. It is optimized for sending fast, affordable payments between individuals and businesses alike. Celo is a massive step towards a more inclusive financial system, where your phone number could effectively become your bank account.

Its focus on financial inclusivity and sustainable growth make it a favorite among Regenerative Finance (ReFi) dapps that aim to help traditionally underserved communities of people.

What can you do with cryptocurrencies?

Cryptocurrencies have a variety of practical applications that open up a wealth of new opportunities.

Send Crypto

Cryptocurrencies like Bitcoin, Ethereum, and Celo allow for quick and inexpensive payments regardless of where you are in the world. They give anyone the opportunity to send digital currency across the globe within a matter of minutes and at a fraction of the cost of traditional wire transfers or other money transfer services.

Get Rewards

Many decentralized finance (DeFi) dapps offer ways to earn rewards on your cryptocurrencies.

Just like a traditional bank that can offer you interest on your assets, DeFi platforms can do the same. However, instead of relying on a central institution like a bank, these platforms are managed by smart contracts and are open for any one to use.

There are many ways to use DeFi on Valora that you can explore to earn rewards. One of which is Valora’s Supercharge program where you can earn 12% rewards on your crypto. Read more about this program here. 

Additionally, for those who want to explore even more ways to earn rewards, Valora offers a variety of DeFi dapps that you can find all within the app under the Earn category.

Collect NFTs

An NFT (Non-Fungible Token) is a digital asset verified using blockchain technology. It often represents ownership of art, collectibles, or digital goods.

It uses the blockchain to prove that you own a one-of-a-kind item, and it can't be divided or exchanged like regular currencies. NFTs open up a new world of creativity allowing projects to create new ways to list and sell unique digital assets.

One platform where you can use cryptocurrency to buy NFTs is Plastiks. This platform enables anyone to easily buy NFTs and help the environment at the same time. It does this by using the Celo blockchain to confirm that plastic has been removed from the environment through the power of a smart contract. 

Users can buy, trade, and collect the environmentally friendly NFTs that companies create and offer through Plastiks’ marketplace.

Hold Stablecoins 

Stablecoins are some of the most popular cryptocurrencies in use. They are tokens designed to maintain a stable value by being pegged to fiat currencies, like the USD or Euro. 

They provide a much more stable price when compared to highly volatile cryptocurrencies and even real currencies that can have high inflation rates.

For Valora users, stablecoins like cUSD (Celo Dollar) or cEUR (Celo Euro) offer a great way to hold stable, digital representations of fiat currencies.

How to get started with a crypto wallet 

Creating your crypto wallet is the first step to entering the world of cryptocurrency.

This comprehensive guide by Valora covers everything you need to know about creating and securing a self-custody crypto wallet, essential for navigating the world of cryptocurrencies

Valora is a great choice for crypto beginners. Its mobile-first approach makes it a convenient way for anyone around the world to send, receive, and store digital assets from your smartphone. 

How to deposit money into a Valora wallet 

1. Set up your Valora wallet

If you have your Valora wallet set-up and your recovery phrase secured, you’re ready to get started.

If you need help securing your wallet and taking your first steps with Valora, read our quick guide “Getting Started with Valora”.

2. Add cryptocurrencies from a centralized exchange 

You can fund your Valora account with assets such as Celo Dollar (cUSD), Celo Euro (cEUR), and CELO (Celo’s native cryptocurrency) either directly through a bank, card, or crypto exchange. Once you’ve added funds to your account, you’re ready to explore!

3. Add cryptocurrencies from an existing wallet 

Your QR code with your wallet address is a special scannable code that you can share with other people to quickly and easily receive funds directly into your Valora wallet. You can find it in the lower-right corner of your wallet home screen. Alternatively you can copy and share your wallet address to transfer funds from another wallet to your Valora wallet.

Conclusion 

This guide is a basic overview of the key concepts of crypto that you need to get started exploring this dynamic world. If you’re ready to take the next step, Valora is one of the best places to begin your crypto journey.

With an all-in-one app that provides access to the best features of crypto such as peer-to-peer transactions, stablecoins, rewards, DeFi dapps, and many more, Valora makes it easy for everyone to explore.

So, if you are ready to get started with crypto, we suggest taking a look at our guide, Get started with Valora.