The concept of cryptocurrency began in 1983 when David Chaum had the idea of coming up with an electronic money system. In 2008 the concept was revisited, and a year later, the world saw the birth of the first cryptocurrency known to man called Bitcoin.
Come with us as we explore cryptocurrency in a way that looks a lot better than your college basketball picks in the middle of March Madness.
Table of Contents
What is Cryptocurrency?
When we think of cryptocurrency, we need to think of a currency that can be used and is being used in a similar manner to fiat currencies. Cryptocurrency is a digital currency meaning that it holds monetary value and can be traded for goods and services. You are also able to buy and sell cryptocurrency in a manner that is very similar to the Forex market.
What is Blockchain Technology?
When we make transactions at a bank, we generate something called a receipt. A receipt will contain all the information about the transaction, and blockchain technology operates in the same manner.
Blockchain is simply a ledger that operates in the cryptocurrency network. Its job is to keep a record of all transactions that have been made and approved by the network. Every time a transaction is authenticated and approved, it is assigned to a block in the blockchain. Once the block reaches its full capacity, it is then added to the chain.
It’s important to note that blockchain technology is also used to help secure the network, as it cannot be tampered with or changed. This means that once a transaction has been approved by the network, it can no longer be altered, and this protects all parties within the chain.
There has been a lot of controversy surrounding the safety of cryptocurrency as it only operates digitally. Cryptocurrency uses something called cryptography which is the study and practice of certain techniques to help protect the network from outside threats or any adversarial behavior.
Cryptocurrency Exchanges
A cryptocurrency exchange is an online platform or business that assists investors in conducting their financial operations with them. These platforms allow users to track their funds, buy and sell crypto, and trade crypto for fiat currencies.
When looking to get started with cryptocurrency, you’ll want to look into finding yourself a reliable crypto exchange platform. Always do your best to look into exchange platforms that have good reviews online.
Reviews offer insight into some of the issues that people may be having with certain crypto platforms. The more a platform has good reviews, the more likely you are to have a good experience. Always look at reviews before coming up with a final conclusion on which crypto platform you’d like.
Cryptocurrency: How Can You Start Investing?
To start investing in cryptocurrency, you need to have a full understanding of what cryptocurrency is and how it operates. There are various books, videos, guides, and many more that take an in-depth look at cryptocurrency and give you a fundamental understanding of what it is and how it works.
It’s important to note that there are different ways that one can invest in cryptocurrencies, such as becoming a virtual miner, buying and selling crypto, and a few more. When you have a fundamental understanding of cryptocurrency, you’re able to see what would best suit you and your taste.
It’s important to note that investing in cryptocurrency is always risky, so you may need to put certain measures in place, such has to find a mentor, signing up for cryptocurrency news, and many others. Always be sure to look into finding your feet first, do a few calculations, and look into what is best for you and your pocket before investing in crypto.
Many online exchange platforms offer beginners the necessary tools to thrive in cryptocurrency. All you need to do is find the platform that can offer this service to you at a reasonable rate.
