The world of Cryptocurrency what do you need to know to start


January 24, 2018 Facebook Twitter LinkedIn Google+ Bitcoin,Cryptocurrency,Digital Money,Electronic Money



2017 will forever be the year that the world awoke to the unruly and unpredictable universe of cryptocurrencies. Having been in existence forever 8 years, it was not until this year that everyone from countries, to mega banks to big time investors took notice as the industry has finally shown it is not just some fringe idea anymore. If you are among those curiosity was awoken by the great rise of this industry, this is Cryptocurrency 101 as we go over the basic things that make up a digital currency in the 21st century.

 

What is a Cryptocurrency?

A cryptocurrency can be simply defined as a virtual currency that is made based on the revolutionary blockchain technology whose main feature is that it is a decentralized public ledger on which valuable assets are recorded, with no government overseeing it. Cryptocurrencies are generally highly encrypted and can be used to make direct payments between peers without ever needing to go through banks or another present financial industry vehicle. A cryptocurrency is highly fluid and can be used to send payments from one country to another in little time and with minute charges, making it an ideal means for making micro-payments.

 

Features

The wild popularity of cryptocurrencies is not based on thin air, as this revolutionary human creation comes with certain unique features that make them an attractive means of making payments despite the fact that they are not backed by any government. Some of the key features that cryptocurrencies have include:

  • Decentralization: All Cryptocurrencies have one absolute thing that binds them, which is that they are completely decentralized and are not issued by any Central Bank in the world, they are not backed by government and they are certainly not banked by any commercial bank either. This feature of cryptocurrency has been targeted by regulators the world over as being anarchic, but this has not done anything to wane their increasing popularity
  • Speed of Transaction: What Cryptocurrencies offer users that the traditional financial vehicles don’t is the swift means of making payments that lets users make transaction at almost instant speeds. Sending and receiving a cryptocurrency payment to and from any country in the world is exceptionally easy, the both sender and receiver not needing any bank to make their deal happen.
  • Counterfeit-Proof: All cryptocurrencies are built on the blockchain technology as earlier stated, and this makes them and their transactions impossible to counterfeit. For any transaction to be added on a given cryptocurrency’s blockchain, a consensus of all the participating computers on its network must be reached making it impossible for anyone to add a transaction that doesn’t exist.

 

How to Keep Your Cryptocurrency

Cryptocurrency unlike the paper money we all know is stored by the user and not by a commercial bank. The tool that is used in storing a cryptocurrency is known as a “Wallet”, which is a highly encrypted software that has a distinct coded address with which the user receives and sends payment using their cryptocurrency holdings.  Cryptocurrency wallets can be easily stored on a PC, or mobile device, although it is highly advised that if your cryptocurrency amount is much to have a dedicated storage facility that is completely offline, also known as a “Cold Wallet”

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