Getting started in Crypto can be confusing.  First of all there are a few (a lot?) of terms you need to become familiar with.  Then there is the process.

TERMS

Wallet - just like a real life wallet, this is where you will keep your money (crypto).  What's different is that in crypto, you need a separate wallet for every token/coin you own.  There are a number of different types of wallets which I will discuss separately.

Exchange - there are many crypto exchanges and these operate just like stock exchanges.  You list your coins and set the price you want to sell at (ask price) and you can set the price you want to buy at (bid price).  When a buyer and seller agree, the transaction is made.  

Private Key

When you get issued a wallet, you receive a long string of letters and numbers - 2 actually, a Private Key and a public key.  We'll talk about the private key first.  As it is termed, you need this key if you want to "unlock" your crypto.  This key needs to be kept in a safe place - preferably off your computer.  If anyone gets a hold of your private key, they have access to your crypto and you could lose all of it. 

Public Key 

Unlike the private key, anyone can know this key.  If they know your key, the only thing they can do is SEND you crypto.   If someone wants to send you crypto, you need to give them this key.  Many people advertise their Public Keys so people can tip them.  For example, this is my public key for the XRP crypto currency raQwCVAJVqjrVm1Nj5SFRcX8i22BhdC9WA. The only thing you can do with this key is give me crypto!  Feel free!

Types of Wallets

• Hot Wallets
• On-line wallet. When you use an exchange, the exchange will create a wallet to store your coins. Coins stored on an exchange are great for convenience but not good for security.  If an exchange gets hacked or there is an inside job, you can lose everything.
• Desk-top wallet Most coins will provide a wallet, either exclusively for their coin or often for a number of coins. As the name implies these wallets are stored on your computer's desktop.  If you are going to use a desktop wallet, you need to ensure you have good anti-virus, anti-malware software and a good firewall.  To trade you need to transfer your coins to an exchange, so convenience is slightly less than online wallets but security is slightly higher.
• Mobile Wallet  A mobile wallet is stored on your mobile device (phone or tablet) and is similar to desktop, but a bit less secure.  Convenience is higher as you are able to trade using coins stored in your mobile wallet.

• Cold Wallets
• Hardware Devices You can purchase a physical device that looks a bit like a USB drive.  In fact, they are specialised USB devices.  Once you create your wallet(s) the Private Key is stored on the device and the management software stores your coins and public key, but not your private key.  One of the highest security wallets, but not so convenient.  
• Paper Wallet  The most secure of all but also one of the least convenient.  You can download software that will allow you to print out your Private and Public Keys.  It prints the actual code as well as the QR Code which you can then scan when you want to trade.  If you lose the paper, or it gets destroyed, then you have lost everything.
• Custody Probably the safest but least convenient of all.  This is where your bank or brokerage stores your Private Key.  

My strategy is I keep my long term "bags" on a LedgerX cold wallet and I keep the coins I regularly trade on an exchange.  I also have some coins on another type of cold wallet called a PundiX Pass card. The XPass card is like a credit card and these are coins I can use for purchasing goods at stores that accept XPass.  (A topic for another day)

The process will be my next post where we will talk about what you actually have to do to get started.  

This post is aimed at beginners but I hope it also provided some insight to active crypto holders.

Until my next post, have a great day and thank you for spending your time reading this.