1. Download a Wallet
To own cryptocurrency, you need a wallet. A wallet is a software that allows to you interact with a cryptocurrency blockchain like Bitcoin (there are many other blockchains). The software can be downloaded onto a computer or a phone.
By far, the best learner wallet is Exodus. It’s free, and they have a whole host of instructional materials to teach you the basics of things like “seed words.” Plus, you can hold multiple cryptocurrencies.
2. Buy or Acquire Cryptocurrency
You can do this through a reputable cryptocurrency exchange (like Coinbase or Gemini) or through reputable apps like Paypal or Cash app.
The main thing to remember is that when you buy the cryptocurrency, you don’t actually own cryptocurrency. Owning cryptocurrency means you control the private keys to be able to move around that cryptocurrency. This is what makes it cryptocurrency. For that, you need your own wallet. Otherwise, what they’re calling cryptocurrency is just a readout on a digital screen, and we already have that type of currency in the current financial system. Cryptocurrency is different.
So, to be clear, you have to transfer what you’ve purchased to your own private wallet for you to actually own cryptocurrency. If you leave it in your Paypal or Cash app or on an exchange like Coinbase or Gemini, what you have is a custodial agreement with them which is essentially a contract for them to deliver the cryptocurrency under the terms of that agreement. Once you’ve transferred it out of the exchange or app to your wallet, then you own that cryptocurrency.
Buying cryptocurrency isn’t the only way to acquire cryptocurrency. You can sell a good or service for cryptocurrency or you can ask an employer to pay you in cryptocurrency or you can use a faucet to get some (some cryptocurrencies give away micro amounts of the currency to teach people how to use their blockchain — they’re called faucets).
3. Only Play With As Much As You’re Willing to Lose
To be an actual investor in the cryptocurrency market requires an enormous amount of research because the risks are many. But there’s nothing stopping anyone from using coffee money to play with wallets and learn the basics. Even your nana can do it.