Crypto Feels Like Magic Until It Doesn’t: 5 Crypto Basics I Wish I Knew Sooner

Money Talks, Literally – with Uncle Abundance

Before you go throwing money at the next trending coin, slow down because crypto basics matter more than hype.

“Uncle, this crypto stuff is wild. Everyone’s making money but me.”

That’s what I’ve heard often and from my neighbour recently, right before telling me he’d dropped £400 into a coin he couldn’t pronounce.

Look, I get it.
Crypto feels exciting. Mysterious. Kinda like discovering money’s cooler cousin.

But here’s the thing:

Crypto feels like magic… until it doesn’t.

Until your balance drops 50% overnight.
Until the coin disappears from the app.
Until you realise you bought hype, not knowledge.

So let’s talk about it.
Let’s walk through 5 rules I used when I was first figuring out the crypto basics.

1. If You Don’t Understand It, Don’t Buy It

Rule number one: if it sounds like Hogwarts for your wallet, pause.

Don’t buy just because a TikTok video said it’s “going to the moon.”
Don’t invest just because your mate said he or she “doubled their money.”

Ask yourself:

• What does this coin actually do?
• What problem is it solving?
• Who’s building it — and why?

If you can’t explain it in plain English, you’re not investing — you’re guessing.

💡 Start here:

• Learn what Bitcoin, Ethereum, and blockchain really are
• Understand how wallets and exchanges work
• Read the basics and not the hype

2. Timing Matters Less Than Discipline

Everybody wants to buy low and sell high.
But let’s be honest, most people buy high and panic sell.

You don’t need to time the market perfectly.
You need a system that makes sense for you.

📌 That’s where dollar-cost averaging comes in:
Buy a small, consistent amount regularly, no drama and no guessing.

“It’s not about catching the rocket. It’s about staying in orbit.”

3. Not Your Keys, Not Your Coins

Something you must learn with regard to crypto basics is that your private key is a long, unique code that gives you access to your funds.
It’s like the password to your bank vault; whoever has it controls the money.

When you keep your crypto on an exchange (like Binance, Coinbase, etc.), they hold the keys, not you.

That means:

• If that platform goes down.
• If it gets hacked
• If it freezes your account

Your crypto could vanish, which means you’re stuck.

In simple terms, you’re just trusting a middleman, just like with banks.

So here’s what to do:

• Learn about hot wallets (apps) and cold wallets (USB-style offline devices)
• Transfer coins you’re holding long-term into your own wallet
• Keep your seed phrase private and written down somewhere safe

Owning crypto means owning the responsibility too.

4. If It Promises Guaranteed Returns, It’s a Scam

There is no such thing as guaranteed profit in crypto (or any asset, for that matter).
None. Zero. Nada.

If someone tells you:

• “You’ll make 10% a week!”
• “You can’t lose!”
• “Just send me crypto and I’ll flip it for you!”…

Run!

Crypto is full of promise — but that promise comes with risk, not certainty.

If it sounds too good to be true, it’s not just wrong, it’s dangerous.

5. Crypto Is Volatile — Don’t Put Rent Money in It

This one’s personal.

I’ve seen people lose sleep because they put their whole emergency fund into a coin they barely understood.

I’ve seen tears over this.

Crypto is an ingredient, not the whole meal.

Use it to:

• Grow with intention
• Diversify a little
• Learn and explore

But never use:

• Your rent or mortgage
• Your food or bills budget
• Or the money you borrowed from a friend or family member

Financial freedom doesn’t come from risk. It comes from balance.

So… Where Do You Start?

Crypto basics are like learning to cook.
You don’t start with a soufflé, you start with scrambled eggs.

Here’s what I’d suggest:

• Learn what blockchain, decentralisation, and smart contracts are
• Read Cryptoasset by Chris Burniske (a good book for a grounded understanding)
• Explore our Cryptocurrency section — we review wallets and platforms
• Please ask me or the team for help and guidance if you feel lost or suspect a scam

Final Thought from Uncle Abundance

“Crypto basics is power, yes. But only when paired with patience, practice, and protection.”

Don’t chase the noise. Don’t skip the steps.
And if something sounds magical… make sure you know the spell before you cast it.

Until next time,
Uncle Abundance
P.S. Always here with the kettle on and a digital wallet offline.