So how did this all start?

Back in 2008, a mysterious figure named Satoshi Nakamoto appeared on the web with links to a new cryptocurrency called "Bitcoin". The idea of an online currency, controlled by no particular person or company, was unheard of. In other terms, imagine having "money" without needing to go to the bank, paying extra fees, or even attach your identiy to it.

It only took 2 years to gain popularity, and soon you could even buy a slice of pizza with Bitcoin. Pretty cool, huh? It quickly grabbed the attention of tech elites, and today 1 bitcoin averages around $50,000.

In 2011, Nakamoto left a note saying "I've moved onto other things." No one knows what happened, but he leaves a legacy of creating the most influential cryptocurrency ever created.

What is Crypto and how does it work?

Cryptocurrency is a digital currency that can be used to buy goods (like pizza or a Tesla) and services (such as cable TV). So you can forget carrying around those dirty bills and heavy coins.

It works by using a technology called blockchain. Blockchain is essential an online ledger that manages transactions, but is not tied to a single computer. What's so great about this? It gets rid of your wallet that never fits into your pocket, there is no interest, you can forget the bank, and it's one of the most secure way to do a transaction online.

Similarly to the stock market, you can purchase and sell cryptocurrency online through an exchange, right from your living room or on your phone.

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The Dark Side of Crypto

Due to the fact that blockchain does not require a bank account, ID, social security number, or even name, it can be taken advantage of for the wrong reasons.

The Silk Road was the greatest example of this.

Back in 2011, the Silk Road was started by a college student with the intent to sell illegal drugs online. However, as this gained popularity, it soon turned into a dangerous black market, where drugs, weapons, and even murderers-for-hire were just some of the offerings. Fortunately, the US goverment was able to intervene and send its creators to jail and seize the bitcoin.

Top 10 most popular cryptocurrencies

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Litecoin (LTC)
4. Cardano (ADA)
5. Polkadot (DOT)
6. Bitcoin Cash (BCH)
7. Stellar (XLM)
8. Chainlink

Learn more about these coins here.

What can you even buy with crypto?

Surprisingly enough, you can buy a whole lot of products and services with crypto. Here's a few examples that may suprise you:

• + Travel: purchase flights, hotels, and rides through Expedia
• + Gaming: play your favorite games using Steam
• + Coffins: yes, you read that right-coffins and cremation
• + Food: grab a burger from Burger King or a sandwich from Subway
• + Cars: drive away in your brand new Tesla or Rolls-Royce

Here are some key terms you should know:

• Stop-Loss Order: an order placed to buy or sell an investment when it reaches a certain price.
• Buy-Limit Order: an order to purchase a coin at or below a specified price, allowing traders to control how much they pay.
• Fork: when an asset is split into two different cryptocurrencies (for example: BTC and BCH)
• Mining: confirming transactions on the blockchain by using a series of computations.

Tips to Invest Safely

1. Do your research. Know what the coins you're interested in contribute to the market. That way, you can better gauge if it will last long-term and be worthwhile.
2. Beware of scams, schemes, and hype. See a coin trending on Twitter? You might think it's a trend you need to get ahead of and quickly invest. However, there are a ton of fake accounts and scammers online that will create this noise in order to gain from your innocence. Like we said before, always do your research.
3. Set up your parameters before diving in. It's important to have a clear vision of what you're willing to risk and how you will take this risk. If you're not sure if a investment might give you $1 million dollars or take away thousands of dollars, you might want to re-think it. A good rule of thumb is only invest a portion of what you're willing to lose.
4. Reduce your risk by spreading your bets across multiple coins. That way, if a risky coin goes south, you don't lose all of your money.

What about the IRS?

Since blockchain is essentially anonymous, a lot of investors fail to report their earnings to the IRS. As expected, the IRS has attempted to catch up and keep their attention on those who trade large amounts. A few key things to remember:

• Cryptocurrency is considered as property, not currency.
• Always keep track of your trading. Time to break out those old spreadsheet skills!
• It's up to you to figure it out. Don't expect a 1099 tax form, but do expect the IRS to knock on your door if you trade a significant amount without reporting it.
• Look into applications such as CoinBase, which will send you a report of your trading history.