Cryptocurrency! The word seems puzzling. But, nowadays, almost everyone around the corner is talking about cryptocurrencies. If you are one of them who wants to learn about digital virtual currency, you have been redirected to the right guide. On this platform, we are here to provide you with a brief on something trending, which is a hot cake from the market!
And this blog post is a complete beginner’s guide to Cryptocurrency. I am sure you will have fun learning more. So before diving into the main topic, it is important to have a proper understanding and knowledge of what cryptocurrencies are, their history, benefits, how to buy them, and many other vital topics related to them.
A Beginner’s Guide to Cryptocurrency
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that controls the creation of new units to secure transactions through cryptography. Cryptocurrencies are decentralized, which means these coins are not backed by any government or financial institution of any country in the world.
Cryptocurrency took birth in the year 2008. Unlike other fiat currencies, which governments and banks issue, cryptocurrencies operate independently of these centralized authorities through an electronic network known as blockchain technology.
Cryptocurrencies have become a trending topic these days. The virtual coins are created through a process or program called mining. We need to have an idea about the popular platform to buy and sell Cryptocurrencies. How can one invest in them? What are the risks involved? How do prices fluctuate?
This is a complete beginner’s guide to Cryptocurrency, where we will educate you on everything you need to know about these lucrative altcoins. This guide will provide you with complete knowledge about Cryptocurrencies and help you understand why it matters today more than ever before. In addition, you will learn how to buy, sell, and trade cryptocurrencies and how to protect your investment from risks. So don’t miss out on the opportunity! It’s time for you to get your hands on a crypto marketplace.
History of Cryptocurrency: Who created it and how it came?
The mystery of who created Cryptocurrency is pretty ambiguous. It has been like a needle in a haystack, but it seems that the search may finally be coming to an end. Experts say that a person or a group named Satoshi Nakamoto is responsible for developing this revolutionary digital currency.
He began working on his revolutionary code that would eventually serve as the backbone in 2007 and 2008 when he released a whitepaper for this Cryptocurrency and its original software reference implementation (the program which set forth all technical standards). Today there are an estimated 10,000+ cryptocurrencies in the market, including Bitcoin, Ethereum, Co-trader, Stellar, Litecoin and many others.
Bitcoin, among all, is the most valued and considered the largest Cryptocurrency. According to CoinMarketCap, it is observed that bitcoin’s market capitalization is almost $900 billion. The second size is Ethereum, which is less than $500 billion.
Inflationary currency
It is not just some crazy inflationary currency like dollars or euros; these virtual coins are stored on digital ledgers called ‘wallets’, which can be accessed using an encrypted PIN (or private key) generated specifically during registration time online from your wallet provider storehouse account balance so that only you can access spending funds inside these wallets.
As the story unfolds, many countries used gold and silver as standard currencies during the 19th and 20th centuries. This idea of a currency based on gold or other precious metals was more prevalent when countries witnessed financial crises during wars. However, from the 1920s until 1970, most nations abandoned this standard for various reasons, including an inability to produce enough goods to meet economic demands while funding two world wars that were fought between 1914 and 1945.
Physical valuables were once traded for commodities and services. They were bulky and burdensome to carry or store away from their places of origin.
Adding to this, the 2008-2009 financial crisis was one of the major crises where many banks worldwide needed financial aid from the government. They were who were willing and able to pay out large sums to these banking institutions to let them operate without any obstruction rather than shutting down altogether, which would have caused an even greater amount of economic damage if left unchecked.
Bank failures and bailouts are something that no country would ever want to encounter. Even in the worst times, it would be wrong for banking systems to go down because they cannot protect our funds or ensure stability when people rely on them the most.
Benefits of cryptocurrencies
However, here are some major benefits of cryptocurrencies in today’s market. Let’s emphasize the three major aspects:
- Security: Cryptography secures transactions, making them difficult to hack.
- Anonymity: Transactions can be made anonymously, appealing to some users.
- Decentralization: Unlike traditional currencies, cryptocurrencies are not controlled by any government or financial institution. It makes them more resistant to censorship and manipulation.
Digital assets are one of the recent revolutionary inventions based on the electronic cash system that allows you to transfer money over computer networks without relying on banks or other third parties.
The beauty behind this revolutionary invention has made many people interested both domestically & internationally, but what goes down inside those inner workings?
How to get started with Cryptocurrency?
As cryptocurrencies have become more popular and made many people rich, many are looking to invest in them. One way of doing this is to hire a broker or agent to help you invest in crypto through a reliable crypto exchange, or read helpful articles like these and start investing in virtual currencies for the long or short term.
All the cryptocurrencies are available for anyone to buy. Cryptocurrency exchanges are the way to buy crypto assets. These exchanges offer a lot of different cryptocurrencies and allow users access to an online wallet similar to banking accounts, but this time backed by personal keys instead of passwords or pins. Isn’t that what you were looking for?
Bitmart, an exchange hacked in July 2018, resulted in $150 million worth of cryptocurrency losses. However, the company’s insurance may cover this event!
Also Read: 11 Best Cryptocurrency Apps
Using our beginner’s guide to Cryptocurrency, you can securely invest in cryptocurrencies by following a few steps. Here are four essential steps that need to be followed while you plan to invest in cryptocurrencies:
FAQs
Using our beginner’s guide to Cryptocurrency, you can securely invest in cryptocurrencies by following a few steps. Here are four essential steps that need to be followed while you plan to invest in cryptocurrencies:
