Sat. Dec 4th, 2021

Beginner’s Guide to Cryptocurrency: Everything You Need to Know

Cryptocurrency is a term describing digital currencies based on blockchain such as bitcoin, Ethereum and Ripple. Unlike centralized banking, like the U.S. Federal Reserve, where governments control the value of a currency like USD through the process of printing fiat money, the government has no control over cryptocurrencies as they are fully decentralized.

Cryptocurrency is electronic cash not tied to any country that can be sent quickly from peer-to-peer directly, without going through a bank or clearing house. In other words, cryptocurrency is a form of digital money which is developed by way of the process called ‘mining’.

So, what’s the blockchain and why is it so popular these days?

There many reasons cryptocurrencies have become so popular. For instance, they’re secure and anonymous (though not as anonymous as some would like), they’re free from government control and manipulation, they offer near-instantaneous transactions with no hefty bank fees.

You may be asking yourself how is it that cryptocurrencies can offer such anonymity? That’s because the blockchain works by recording and verifying transactions on an open ledger in a chronological order, where each new transaction is recorded as a block of code which is then added to the previous block creating a chain of blocks for all previous transactions to be seen publicly; hence the name blockchain. 

To make things even more complicated every time someone conducts a transaction using cryptocurrency, their computer will have to ‘mine’ or solve complex math problems in order to verify the transaction.

Bitcoin was the first cryptocurrency to be created and it is still by far the most popular one as well. With over 1,800 cryptocurrencies (and growing) and counting and a market capitalization of over $100 billion dollars in crypto news, this should come as no surprise.

What’s Next for Cryptocurrencies (Predictions)?

First off we should mention that nothing is ever guaranteed because once all 21 million bitcoins have been mined there will never be any more; which means they could theoretically become even more valuable than they already are today.    

Also keep in mind that many governments around the world have warned their citizens against investing in cryptocurrencies because they are volatile and very difficult to regulate; which means when something goes wrong, the government will most likely not be able to help you. So it is always a good idea to invest only what you can afford to lose.

How to Get Started Using Cryptocurrencies?

To get started using cryptocurrencies you will need a place to store them, called a wallet where your public and private keys are stored similar to an email address for sending and receiving Bitcoins. 

There are basically two types of cryptocurrency wallets: software wallets that you install on your PC or smartphone, or online web or cloud-based wallets. Below is a list of some of the top cryptocurrency wallets available:     

  • Bitcoin 
  • Ethereum 
  • Dash

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