Your Gateway to Crypto
Discover how the world of crypto began with Bitcoin, the revolutionary decentralized currency that lets you move money without banks or middlemen. Explore a market worth more than $3 trillion, and learn the fundamentals before taking your first step.
Imagine a financial system that needs no bank or middleman
Imagine a financial system that needs no bank or middleman — just your device, your digital wallet, and a currency that moves from person to person reliably and securely, with no one else involved. That was the idea behind Bitcoin. From Bitcoin's launch to today, more than 15 million cryptocurrencies are now traded in a market that had surpassed $3 trillion in value at the time this was written.
So how do you enter the market, and what should you pay attention to?
We'll cover that here.
The Idea Behind Bitcoin
Bitcoin is the first cryptocurrency, launched in 2009 by a person or group of people under the pseudonym "Satoshi Nakamoto," with the goal of enabling anyone in the world to send money to someone else safely and reliably without needing an intermediary like a bank. Bitcoin is considered fully decentralized — no single party controls it. It is run by a distributed network of participants around the world, who verify the validity of transactions and take on the task of securing the network using "blockchain" technology. Bitcoin's strength lies in its code, which sets a maximum supply cap of no more than 21 million bitcoins. This limit is one of its most important characteristics, since it gives Bitcoin the property of scarcity and makes it resistant to inflation and open-ended printing, unlike most traditional and other digital currencies.
The Concept of Altcoins
After Bitcoin launched, a wave of other digital assets emerged, often known as altcoins — a term covering every cryptocurrency other than Bitcoin.
Each altcoin was developed for a different purpose:
- Some coins, such as Ethereum, were designed to serve as platforms for building applications and launching new coins.
- Others aim to improve on Bitcoin's performance, whether in transaction speed or lowering fees.
But unlike Bitcoin, most altcoins are not fully decentralized. Many have a known development team behind them or early investors who hold large stakes in the project, giving them the ability to influence its direction.
For this reason, altcoins vary greatly in quality and transparency — so it's essential to study them carefully before making an investment decision.
How to Get Started in the Crypto Market
Entering the crypto market is technically easy, and only requires an account on one of the crypto platforms — but in return, you are responsible for the security of your funds. Before taking any step, it's essential to understand the fundamentals, since dealing with crypto is radically different from dealing with bank accounts or traditional wallets. Any mistake in a wallet address or the way you send a transfer could cost you the entire coin, with no way to get it back.
That's why, before entering the market or trading, make sure to:
- Understand how digital wallets work and their types (hot and cold).
- Learn how to keep your wallets and accounts secure.
- Try sending small amounts at first, until you're confident the information and steps are correct.
If you're not ready to deal directly with digital wallets and the responsibility of self-custody, there are regulated, licensed alternatives, such as Bitcoin and Ethereum spot exchange-traded funds (Spot ETFs).
Bitcoin and Ethereum Spot Exchange-Traded Funds (Spot ETFs).
Bitcoin and Ethereum spot ETFs let you invest in digital assets in a way similar to buying stocks, without needing to store the coins yourself or deal with crypto technology. They're a suitable option for investors looking for a tool that gives them performance similar to that of crypto assets.
We've put together a comparison of the leading funds here to help you decide
Leading Bitcoin Spot Funds - BTC Spot ETFs
| Ticker | Description | Inception Date | Assets Under Management | Annual Management Fee | 5-Year Performance |
|---|---|---|---|---|---|
| FBTC | A spot fund tracking the price of Bitcoin – from Fidelity | January 10, 2024 | $18 billion | 0.25% | 136.13% |
| IBIT | A spot fund tracking the price of Bitcoin – from BlackRock | January 5, 2024 | $64 billion | 0.25% | 131.03% |
Leading Ethereum Spot Funds - ETH Spot ETFs
| Ticker | Description | Inception Date | Assets Under Management | Annual Management Fee | 5-Year Performance |
|---|---|---|---|---|---|
| ETHA | A spot fund tracking the price of Ethereum – from BlackRock | June 1, 2024 | $3 billion | 0.25% | 1.62% |
Source: This data was gathered from various sources, including the funds' official websites and TradingView for performance figures.
Key differences between owning a spot fund unit and owning the coin directly:
| Aspect | Owning a Fund Unit | Owning the Coin |
|---|---|---|
| Ownership | You own an investment unit that mirrors the coin's performance | You own the coin itself |
| Storage | Held by a custodian | Self-custody, such as using a digital wallet |
| How You Buy It | Bought like any stock through a trading platform | Bought through a crypto exchange |
| Usage | You can't use it since you don't own the coin itself — only exposure to its performance | You can use it, transfer it, or pay with it |
| Goal | Getting performance similar to the coin without the complexity of owning it | Owning the coin and using its technology |
The final word
Bitcoin was the beginning and is considered the market's spiritual father, and altcoins came years later with different goals and technologies. Despite the variety of opportunities, the market requires understanding and awareness before getting into it. Try to learn the fundamentals, understand how to safeguard your money, and get to know alternatives like exchange-traded funds if you're not ready to deal with crypto directly.