Cryptocurrency, also known as digital currency, is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability.
A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. 1
The first decentralized cryptocurrency was bitcoin, which was created in 2009 and is still the best known. There has been a proliferation of cryptocurrencies in the past decade and there are now thousands of active currencies. However, many cryptocurrencies are poorly understood and the term “cryptocurrency” itself is often used loosely to refer to cryptocurrencies (including bitcoin) in general or any digital currency that uses cryptography for security.
This blog touches on all the aspects of cryptocurrency for beginners. It explains what cryptocurrencies are and how they work; how they are created; their pros and cons; how they are used independently and how they interact with other systems such as fiat currencies, commodity markets or stock exchanges; their history; their future prospects; their possible applications; the technologies behind them; their legal status around the world etc.
Cryptocurrency is starting to become a big deal and people are taking is seriously. In this beginner’s guide, you will learn to trade cryptocurrency without all the fluff. This guide will teach you the basics of cryptocurrency trading, how to trade cryptocurrency for profit, and what to look out for before getting started.
There is a lot of hype around coinspace right now. People are talking about it everywhere and there appears to be a lot of interest in cryptocurrencies.
The goal of this blog:
To teach you all the basic knowledge needed to jump on this opportunity without getting lost in technical details.
My goal is to help you make an informed decision that you won’t regret later on. I want to help you avoid all the hype and fluff that can be found everywhere on social media.
A little about me:
I’m a computer engineer from Belgium with 3 years of experience as a software developer and 10 years experience with computers in general. I have been investing in stocks and cryptocurrencies since 2016 and I am passionate about helping others learn how to get started trading cryptocurrency for profit. This blog is not meant for advanced traders but rather for beginners who want to learn how to trade cryptocurrency for profit without all of the technical aspects that most other blogs focus on.
What Is Cryptocurrency?
Cryptocurrency is a type of digital money that is designed to be secure and, in many cases, anonymous. It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers.
Cryptocurrency is created through a process called mining. Individuals are rewarded with cryptocurrency for recording transactions in a block on the blockchain, a public record of all transactions. This process requires solving complex mathematical problems and receives Bitcoin in return for their services. The more computing power you contribute then the greater your share of the reward.
The first cryptocurrency was bitcoin, which was created in 2009 and is still the best known. Today there are thousands of alternative cryptocurrencies with various functions or specifications. Some of these are clones or forks of Bitcoin, while others are new currencies that were built from scratch.
Why Use Cryptocurrency?
There are plenty of reasons why you might want to start using cryptocurrency. Here are some of them:
You can store it securely in a digital wallet instead of entrusting it to banks who may lose it due to hacks or mismanagement.
You can send large amounts abroad without having to pay exorbitant bank fees or wait
Cryptocurrency has taken the world by storm. All over the world there are people mining for Bitcoins, Doge coins, and various other forms of currency. They’re starting to carry some real value in the real world and some places even accept cryptocurrency as payment for goods and services. In this beginner’s guide to Bitcoin you will learn all of the basic yet essential stuff related to Bitcoin.
The first question that possibly comes to your mind is what is Bitcoin?
Well, it’s a digital currency that is not tied to any bank or government and allows users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive Bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies.
We have tried to answer some of your questions regarding cryptocurrency for beginners:
Bitcoin is the most popular cryptocurrency in the world, with over 10 million users worldwide. There are hundreds of other cryptocurrencies available, each with their own advantages and disadvantages. You may have heard of Ethereum, Ripple, Litecoin or Monero.
In this article we will help you get started with Bitcoin so that you can buy your first Bitcoin. Once you have purchased a small amount of Bitcoin, you will be ready to send and receive bitcoin payments.
What is a cryptocurrency?
Cryptocurrency is a digital currency which uses encryption techniques to generate money and verify transactions. The idea behind cryptocurrencies was first proposed by an anonymous programmer known as Satoshi Nakamoto in 2009. Cryptocurrencies are decentralised – there is no central authority, government or bank controlling it!
What makes cryptocurrency unique?
1) Decentralisation: Cryptocurrencies remove third parties such as banks, governments or payment processors from the equation. They allow users to make direct, peer-to-peer payments to each other using the internet.
2) Anonymity: Users do not need to disclose their personal information when making cryptocurrency transactions. This makes it very difficult for regulators and governments to track people’s financial transactions.
What is Cryptocurrency?
Cryptocurrency is a digital currency that can be used to exchange goods and services. These are the currencies that are transmitted through the internet. The best feature of these currencies is that they are decentralized, which means no government or bank has control over them. The transactions are secure and anonymous, making it even more attractive for users.
The first cryptocurrency was introduced in 2009 by Satoshi Nakamoto under the name Bitcoin. Since then, hundreds of cryptocurrencies have been developed and launched. Some of them are:
The most popular cryptocurrency today is Bitcoin, with a market capitalization of $70 billion dollars.
Why Bitcoin Matters
Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value. The Bitcoin architecture, literally the ability to having these ledgers that can’t be replicated is an amazing advancement.
Bitcoin and the Blockchain
The Bitcoin currency had to have some kind of mechanism to ensure that a given Bitcoin could only be spent once (i.e., avoiding the double-spending problem). To achieve this, Satoshi Nakamoto, the unknown inventor of Bitcoin, proposed that each Bitcoin participant (i.e., a node in the network) maintains a record of all Bitcoin transactions, forming an append-only log called a blockchain. Every time a new transaction arrives, it is appended to the ledger and each node updates its own copy of the ledger to reflect this transaction.