Getting started with cryptocurrencies

The latest addition to Dogeconomist is the category “Personal Finance” and will include anything that revolves around individual financial management. Obtaining monetary resources is the starting point. In the case of cryptocurrencies, this can be a bit of a hassle. There have even been some questions in the Dogecoin community of people who cannot figure out how to buy Dogecoins. Fortunately, it is not that hard to get started if you know where to look. Hence the following part will provide a small guide for those willing to start using Dogecoin (and other cryptocurrencies).

Wallet

The first and most important requirement for using cryptocurrencies is a wallet address. This is a unique identifier comparable to a bank account number, except that it is in the same format worldwide. A wallet address can be obtained through either a local client or an online service. The main difference is in the way security works. Each wallet address is accompanied by a private key. It is required to “unlock” a wallet and to be able to make transactions.  In the case of online wallet these private keys are stored on the provider’s computers, connected to the internet, while local wallets leave you responsible for your own private keys.

Getting coins

Once you have your wallet set up, you are ready to start using coins. You will still need to exchange some fiat currency to cryptocurrencies first. This can be done through a cryptocurrency exchange. Dogecoins can even be received for free, and the Dogecoin community is also actively tipping eachother some random DOGE. Participating in the community is bound to get you some free coins. Lastly, new coins can be obtained through mining or minting (depending on the cryptocurrency). This is a more advanced way of obtaining coins, and will be discussed in a later guide.