Cryptocurrency has taken the world by storm, promising new ways to build wealth and financial freedom. Yet, due to marginalisation, crypto remains at arms length for many potential investors. This guide will break it down in the simplest way, showing you how cryptocurrency works, why it matters, and how you can get started safely.

By the time you finish reading this article, you’ll not only know what cryptocurrency is, but also how it can be a tool of financial empowerment for communities of colour.

What is Cryptocurrency?

Cryptocurrency is basically digital cash. Crypto is not controlled by the government or banks, in contrast to the dollars in your account. It is built on a technology called blockchain, a type of digital accounting book that keeps track of all transactions.

Here's an analogy: Let's say you and your friends all shared a notebook that recorded who owed whom money, and you all had the same version of the notebook. No one could cheat the system. That’s essentially what blockchain does—it's a public ledger that can't be altered or manipulated by a single person.

Popular Cryptocurrencies

There are literally thousands of cryptocurrencies, but here are some of the most well-known:

Bitcoin (BTC)

The first and most valuable cryptocurrency. It’s crypto “gold.”

Ethereum (ETH)

A platform for building apps and smart contracts, like the “internet” of crypto.

Stablecoins (USDT, USDC)

Cryptocurrencies tied to the value of the U.S. dollar, so they’re more stable.

Why Should You Care About Cryptocurrency?

1. Wealth Building & Economic Empowerment

Cryptocurrency presents an opportunity to build wealth beyond the traditional finance mechanisms that have historically been biased against different communities. Since crypto does not require a bank account or credit score, it enables easier access to investing.

2. Financial Independence

With crypto, you don’t have to rely on banks that charge exorbitant fees or deny loans. You are in charge of your money, which can be especially empowering in underserved communities.

3. Access to Global Markets

Unlike traditional investments, crypto allows you to trade or invest 24/7, no matter where you are. Whether you’re in New York or Atlanta, you have the same access as someone in Europe or Asia.

How to Get Started with Cryptocurrency

If you’re new, here’s a step-by-step guide to help you get started safely.

Step 1: Educate Yourself

Learn before you invest any money in crypto. Follow trusted sources like:

Websites: eg CoinDesk, CoinTelegraph, Investopedia

YouTube: Channels like “Andrei Jikh” or “Crypto Casey” explain things in simple terms

Podcasts: “The Black Blockchain Summit” or “Crypto for Beginners”

Step 2: Choose a Crypto Wallet

A wallet is where you store your crypto. There are two types:

• Hot Wallets – Online wallets like Trust Wallet, Coinbase, or MetaMask (beginner-friendly)

• Cold Wallets – Offline devices like Ledger or Trezor that store your crypto offline (more secure)

If you’re a beginner, a hot wallet is easier to use.

Step 3: Select a Crypto Exchange

A crypto exchange is where you buy and sell cryptocurrencies. Some beginner-friendly platforms that are easy to use are:

• Coinbase – User-friendly but high in fees.

• Binance.US – More complex but lower in fees.

• Cash App – Great for buying Bitcoin easily.

Step 4: Invest Small & Wisely

Cryptocurrency can be volatile, so prices swing up and down dramatically. Never invest money you can’t afford to lose. Experiment with a small amount—maybe $20 or $50—just to get the feel of it.

A good strategy is dollar-cost averaging (DCA), which means investing a small fixed amount on a regular basis, like $10 a week. This will rescue you from big price swings.

Step 5: Secure Your Investments

Since crypto is online, security is crucial. Do the following:

• Use two-factor authentication (2FA) on all accounts.

• Never share your wallet’s private keys.

• Be cautious of scams—if it’s too good to be true, then it probably is.

Avoiding Common Crypto Scams

Scams are unfortunately common in crypto. Here are a few red flags to watch out for:

1. “Guaranteed” High Returns

No investment is 100% guaranteed to make you rich.

2. Fake Giveaways

Scammers pose as celebrities or influencers offering free crypto.

3. Pyramid Schemes

If you have to recruit individuals to make money, it’s a scam.

4. Phishing Attacks

These are fake websites or emails that get you to enter your passwords. To be secure, use only well-known exchanges and never send money to an individual you don’t know.

The Future of Crypto & Black Wealth

The Black community has historically been excluded from most avenues of wealth building. Cryptocurrency offers a new avenue to take control of financial futures regardless of banks and institutional approval. Many Black pioneers are already leading the way in crypto, from launching Black-owned exchanges to developing blockchain-based businesses.

Imagine a future where more African Americans use crypto for: sending money easily without exorbitant remittance charges, investing in Black-owned businesses through blockchain crowdfunding and owning digital property in the metaverse. This isn’t about getting wealthy—it’s about economic freedom and generational wealth.

Final Thoughts

Cryptocurrency can be daunting at first, but when you simplify it, it’s truly just a new way to manage and invest money. By breaking it down step by step and doing your due diligence, you can be part of this financial revolution.

Now that you have the basics, what’s stopping you from taking your first step in cryptocurrency? Start learning, start investing, and start building your future!