Crypto 101: An intro to cryptocurrencyCrypto 101: An intro to cryptocurrency

Let’s start with the basics 

A cryptocurrency is a digital asset that can be used as a form of investment or payment. It’s typically issued without the involvement of a government or central bank. 

Cryptocurrency transactions are secured by cryptography and verified by a global network of computers, then recorded on a distributed ledger called a blockchain. This ledger acts as a transparent record of every transaction.

Bitcoin was the first and is still the best-known cryptocurrency, but there are thousands of others. Each one has its own purpose, structure, and community.

Why do people invest in crypto? 

Some people invest in crypto because they believe it could be the future of finance. Others are drawn to the tech behind it, or want to diversify their portfolios with higher-risk, potentially higher-reward assets.

How does crypto work? 

Cryptocurrencies run on blockchains, which are ledgers that record every transaction. New entries are confirmed by a process called mining or staking, depending on the currency. Generally people use a digital wallet or platform to hold their crypto.

How Sharesies makes it simpler 

When you invest in crypto through Sharesies, there’s no need to set up your own digital wallet. 

Sharesies is working with Kraken, one of the world’s leading crypto platforms, to store your crypto on your behalf.

You’re the beneficial owner, and you can view and manage your holdings anytime in the Sharesies app.

Ways to invest in crypto

Individual cryptocurrencies, such as Bitcoin or Ethereum, can be bought directly in the Sharesies app.

You can also get exposure to crypto through ETFs that hold or track crypto, or companies that operate in the crypto space.

What are the risks? 

Crypto is generally considered a high-risk investment. 

High-risk investments carry potential for higher returns, but they also carry higher potential for loss. They’re not suitable for everyone, especially if you’re uncomfortable with the potential of losing some or all of your investment.

Some things to consider include:

• High volatility: Crypto is highly volatile, which means the price can rapidly move up and down.

• Lack of regulation: Crypto doesn’t currently have the same protections as financial products, and regulation could change at any time, affecting your investment. 

• Technology risks: Crypto and related technologies are new and evolving. This means there might be vulnerabilities which could lead to the loss of all your crypto, or outages in availability.

• Tax obligations: You will be responsible for reporting any crypto income and paying tax to Inland Revenue.

More detail about the risks is included in the Crypto Terms and Conditions.

Smart investing strategies apply to crypto too 

Even though crypto behaves differently from other investments, the same general principles apply:

• Diversify your portfolio across different types of investments

• Understand your personal risk appetite

• Invest for the long term

• Use strategies like dollar-cost averaging to help manage volatility

Tips before you get started

• Only invest what you’re comfortable losing.

• Think about how crypto fits into your financial goals, broader investing strategy, and overall portfolio.

• Do your own research and stay curious.

Get started in minutes

With Sharesies, it’s easy to add crypto alongside your shares, savings, insurance, and payments—so you can see your full wealth picture in one place.

Sharesies Crypto is offered by Sharesies Crypto Limited.

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