Interested in getting started with cryptocurrencies, but have yet to dive in? If you are still hesitating to buy your first cryptocurrencies or start accepting them as payment, no doubt you have your reasons. But you are probably looking for answers or solutions to help you work around any obstacles that stand between you and adopting cryptos.
In this article, we will be going over some of the potential reasons why you may have not yet made a move to start using cryptocurrencies.
We will follow each with the clarifications or solutions you require to finally invest in crypto and start enjoying the benefits.
You Don’t Understand What It Is Or How It Works
Despite the fact that crypto is very much in the mainstream now, there are still plenty of people who are confused about the nature of cryptocurrencies and how blockchains work.
It does not help that there is a stupendous amount of terminology surrounding cryptos, the majority of which is technical in nature.
Worse, many people who do understand how crypto works fling these technical terms around with no regard to whether laymen understand them. If you ask questions, there is a good chance they will give you a matter-of-fact reply using other terms you do not understand.
How To Solve It:
There are a lot of resources out there aimed specifically at crypto newbies who think a “fork” is something you use to eat at the dinner table. One example is Coinbase Learn. There is also our “how-to” section of crypto guides.
We are not going to lie, you will probably feel a lot of confusion when you first start learning, but that is perfectly okay.
As a beloved chemistry teacher used to say, “It’s not hard; it’s just new.” Crypto may seem hard to understand at first, but that is just because it is unfamiliar. The more you familiarize yourself with it, the less confusing it will be.
But here is a word of caution: you can spend forever learning about crypto and not using it if you are trying to achieve perfect understanding before you start buying, trading and selling it.
So, we suggest that you start with a basic framework of knowledge, and then start using crypto. In other words, get out of your own way. Stop holding yourself back. Crypto actually becomes a lot less complicated to understand once you see it in action.
The cryptocurrency world may seem technical and opaque at first, but learning the jargon and grasping the fundamentals will come easier than you think if you decide to start using cryptos.
You Don’t Know How To Buy It
Some years back, it could be complicated trying to get your first cryptocurrency. But it has never been simpler than it is today.
How To Solve It:
First of all, you are going to need a crypto wallet. Here are some options:
Or you can just use the wallet provided by the exchange where you are obtaining the crypto. Find more information about wallets here.
Next, you need to actually buy your crypto. To make this super straightforward for you, we have put together a first time buyers step-by-step guide to purchasing cryptocurrencies.
Here are the payment methods you can use to purchase cryptos:
- Credit Card
- Cash Money
- Debit Card
- Bank Account / Wire
- Western Union
- Gift Cards
- In Person
Some of the different platforms we recommend for buying cryptocurrencies include
Did you know that there are also local ATMs in most communities now that let you put in cash to receive bitcoins?
So, there are a lot of options out there, and plenty of flexibility. We recommend that you do not over-think it. Just pick whatever is most convenient and intuitive to you.
Buying cryptos is very simple these days. No matter how you want to pay, you should be able to purchase your first crypto quickly and easily.
The Volatility Scares You
Cryptocurrencies are notoriously volatile, swinging up and down in value at the drop of a hat. One day, a crypto may soar to the moon. The next, it may crash back to Earth like a meteor.
This volatility draws some people to invest in crypto, because they are hoping they can get rich quick on one of those dramatic upswings.
But it makes others cautious, as they do not want to be caught off-guard by one of the plunges.
How To Solve It:
There are some workarounds for crypto volatility. Some options include using stablecoins, diversifying, and simply keeping your money in the form of USD the majority of the time, converting to crypto only to buy, sell or trade.
We go into these ideas and a few others in detail in our guide to handling volatility with cryptos.
There are a number of strategies you can use to combat the effects of crypto volatility. If you are careful, you can minimize your exposure.
You Don’t Know Where To Spend It
While some avoid getting into cryptocurrencies because they do not know how to buy them, others avoid them because they do not know where to spend them.
How To Solve It:
You might be under the impression that cryptocurrencies are not accepted by a lot of vendors. But that is no longer the case. More and more companies, large and small, are starting to accept cryptos as payment.
Some examples of major companies that now accept cryptocurrencies include Starbucks, Microsoft, Home Depot, and Overstock.
A lot of freelancers who conduct business online also accept crypto payments.
If you happen to be into sports betting or casino games, there are now numerous betting sites that accept cryptos. Some even specialize in them. Check out our guide to buying bitcoin for gambling.
Indeed, there are some special advantages to using cryptos for gambling. Depositing crypto usually opens the door to claiming larger bonuses. Withdrawal caps also tend to be higher, making it easier to remove your winnings from your gambling account.
As we continue moving into the future, we have every reason to believe that paying with cryptocurrencies will soon be as common as paying with a credit or debit card, cash, or other familiar methods.
Numerous sellers and businesses now accept crypto payments. So, if you have crypto, you should find it convenient as a payment method. On that note, if you are a vendor of some sort, accepting crypto will probably increase your business.
You Are Worried About Slow Transfer Times
Slow transfer speeds are a concern with cryptocurrencies depending on what crypto you are using, how much you are transferring, where you are transferring it from, and where you are sending it to.
How To Solve It:
At the outside, crypto transfers can sometimes take hours or days. But what you might not know is that smaller transfers often can be completed in a matter of minutes, or sometimes even seconds.
Some cryptos that have reputations for quick transfer times include Cardano, Ethereum, Solana, Bitcoin, XRP, Avalanche and Cosmos.
It is true that transfer times for cryptos can be slow, but they can also be rapid.
You Are Concerned About The Fees
Something else that may worry you about using cryptos is the fees you will need to pay. These include a combination of transaction fees (also called “network fees”), crypto exchange fees, and wallet fees.
How To Solve It
Naturally, some exchanges are more expensive than others, so a good starting point is to choose an exchange with low fees.
You also can choose cryptos that tend to have low fees. But be aware that network fees can vary, sometimes significantly, for any given crypto.
Smaller transactions cost less to process, as do slower transactions. So, if you are not in a rush, deliberately choosing slower transfer times can sometimes save you money.
You also will want to try to avoid making transfers at times when networks are especially busy, as this can greatly increase transfer fees.
Before you make transactions, you can check the current fees to make sure that the transactions will be affordable for you.
To give you an example, Ethereum gas fees in particular have a history of volatility. Ethereum.org provides an in-depth guide to gas fees and how they work here.
If you scroll down near the bottom of that page, you will see a list of linked tools that you can use to check the price of Ethereum “gas” (fees) before you initiate a transaction.
We will be honest. Navigating around potential high fees is definitely one of the bigger inconveniences of using cryptocurrencies. But over time, you should become pretty good at doing so.
Cryptos can sometimes involve high fees, but by monitoring fees and avoiding transactions during busy times, you can minimize the costs of your transactions.
You Think Cryptocurrencies Are Harmful To The Environment
While cryptocurrencies may help us gain more financial freedom in the future, right now, you may be more concerned with the future of our planet.
There are legitimate and valid environmental issues resulting from cryptocurrency mining and NFTs. With climate change having increasingly devastating effects each year and without governments or corporations being on track to rein in the destruction, it is responsible not to want to participate in anything that could make things worse.
How To Solve It
Changes are coming fast to make crypto more green. As explained here, for example, “Ethereum’s energy consumption will be reduced by ~99.95% following The Merge from proof-of-work (PoW) to proof-of-stake (PoS).”
This massive change is expected later this year. On the linked page, you can read a detailed explanation of how it will help.
While crypto will become greener in the near future, you also can make sustainable choices when you use crypto now. In this guide to green crypto, we share a list with you of the most sustainable cryptos, along with some general advice for using cryptos as sustainably as possible.
There are environmental problems with crypto right now, but things are improving rapidly on this front. There are also already sustainable cryptos and practices you can choose to enjoy the advantages of crypto while protecting the environment.
You Are Overwhelmed By All The Cryptos Out There
Did you know there are over 19,000 cryptocurrencies in existence? With such a massive selection, it is easy to find yourself getting dragged into the black hole of analysis paralysis. Which cryptos should you buy? Should you get a popular crypto like bitcoin? Or should you invest in some obscure new meme coin?
How To Solve It:
The answers to the questions above depend in part on your goals. If you are trying to invest in crypto, that is a very different goal from simply receiving and sending payments in cryptocurrencies.
Regardless, a good starting point in most cases is to simply purchase a major crypto rather than obscure meme coins. As a newbie, you will find this easier, and it will put a swift end to the analysis paralysis.
The Brookings Institution says, “Bitcoin’s technology does seem outdated compared with some of the newer cryptocurrencies that enable greater anonymity for users, faster transaction processing and more sophisticated technical features that facilitate automatic processing of complex financial transactions. For all its flaws, however, bitcoin remains dominant: It accounts for nearly half of the total value of all cryptocurrencies.”
The most important thing is to make sure that whatever type of crypto you buy, whether it is a major coin or something more obscure, it is viable to use in regular financial transactions.
Of course, that is only relevant if you are concerned about practical considerations. If you do just want to mess around with meme coins for investment or just for fun, go for it.
There are tens of thousands of cryptocurrencies out there, but you can feel free to ignore the vast majority of them. It is perfectly fine to get started by just purchasing some BTC or another major crypto.
You Think Cryptocurrencies Are But A Flash In The Pan
Despite the fact that cryptos have become more and more mainstream and prevalent in recent years, there are still some people who think that in a few more years time, they will all be worthless and nobody will use them.
There is a good reason that you may believe this. Some really prominent figures have dismissed cryptocurrencies, even Warren Buffet.
How To Solve It
The values of cryptos certainly can crash unpredictably, but if your concern is that the entire phenomenon is transitory, that is not something you need to worry about.
In the same article we referenced above, the Brookings Institution explains that cryptos are changing the financial world forever. The site says, “Cryptocurrencies may or may not persevere as speculative investment vehicles, but they are triggering transformative changes to money and finance. As the technology matures, stablecoins will hasten the ascendance of digital payments, ushering out paper currency.”
Indeed, the institution goes on to explain that central governments are now creating digital currencies of their own, fearing that if they do not, they will be left behind.
So, it does not make a lot of sense to avoid adopting cryptocurrencies because you think they are a passing fad. On the contrary, it makes sense to adopt them sooner than later so that you also do not get left behind.
Cryptocurrencies are not a fad. If anything, paper currency is what is likely to be phased out in the coming years.
You Do Not Know If It Is Worth It To Adopt Cryptos
Although less effort is involved in getting started with cryptos than you might have thought, you might still wonder whether the remaining effort is worth it. Do cryptos really offer substantial benefits?
How To Solve It
Figuring out whether crypto is worth it is just a matter of educating yourself in the advantages of using BTC and other coins. Some of the benefits of using cryptocurrencies include:
- High security
- Anyone can use crypto
- Easy international transfers
- Receive more payments and expand your business
- Investment opportunities
- Make convenient payments
- Get access to deals and promotions that are only for crypto customers
- Quick and affordable transfers (depending on your approach)
- Move beyond the middleman (i.e. banks)
- The way of the future
The list above is not even fully comprehensive, but it at least gives you an idea of the advantages you can expect.
There are many benefits to adopting cryptocurrencies that make the effort involved worthwhile. And as this post explained, the effort required is less than you think.
Start Using Cryptocurrencies Now
As a newcomer to the world of cryptocurrencies, you might have been feeling overwhelmed about taking your next steps. But hopefully after reading this post, you realize that using cryptocurrencies is worthwhile, and getting started is surprisingly easy.
Ready to buy your first crypto? Check out reviews of our recommended crypto exchanges. Before you know it, you will have your first crypto and be ready to participate in the decentralized economy.