How to get started!
What is cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography and can be used as a form of payment that can be exchanged online for goods and services."Crypto" refers to the various encryption algorithms and cryptographic techniques that safeguard public balance ledgers that everyone has transparent access to.There are thousands different cryptocurrencies that are traded publicly with various functions and specifications. Some of these are clones or forks of Bitcoin, while others are new currencies that were built from scratch.
But why use them?
One very attractive aspect of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation. Additionally, traditional currency stored in banks can be a victim of inflation. Cryptocurrencies are also built upon a peer-to-peer network which creates an efficient method for transactions that prevents fraud.One of the most loved (and feared) aspects of Cryptocurrencies is that they allow users to stay anonymous.
Isn't it... illegal?
The aforementioned anonymity has given rise to the erroneous belief that it is illegal or immoral to use them. This, obviously, is false. Just like anything anonymous on the internet, there are those who have used cryptocurrencies to conduct illicit activities. However, the vast majority of transactions are completely legal. There are a lot of large companies (Microsoft, Paypal, Etsy) that accept cryptocurrencies as a form of payment.
Should I invest in it?
The quick answer is... yes! But, alas, there are some caveats. Just like any sort of investment there is always the chance of losing your money. Some economists have criticized cryptocurrencies for their extreme price volatility (this volatility is shown in our previous dashboard). However, by reading and watching the news, noticing patterns and a little luck, you can predict when you should buy or sell to make a huge profit! Additionally, there are rumors that governments are preparing their own cryptocoins, thus making cryptocurrencies a necessity for the future.
How do I get started?
First of all, you need an Exchange, thanks to which you can buy, sell, and hold cryptocurrency. Here is a guide about the best exchanges on the market. Most of these exchanges require you to provide some personal information (driver's license, photograph etc.) and a form of payment method, meaning a bank account, a credit or a debit card.Now you can start buying cryptocoins! Of course, you need somewhere to place your purchases: a wallet. There are two types of wallets. A hot (online) wallet and a cold (hardware) wallet.
This sounds complicated
Thankfully, the process of buying and selling cryptocurrencies (especially well known crypto such as Ethereum, Cardano and Bitcoin) has become extremely mainstream. Additionally, you do not need to scour the internet for information, because every day sites, such as Youtube and Reddit provide useful guides and related news. Be careful about who you are listening to, as there are scammers or misinformed people who may damage you financially. There are also other ways to buy cryptocurrency, like the BTC ATM.