What is the Crypto Currency and What You Need to Know
What is the Crypto Currency and What You Need to Know
You may have heard the term crypto currency floating around, but you’re not sure what it means or why it’s important to know about them. It’s OK; I was in the same position when I first heard about this new form of digital currency that was available to everyone as long as they knew how to create an account and use it. Luckily, this handy guide will walk you through everything you need to know about crypto currency so that you can be an informed consumer and user of the new system. So, what is the crypto currency?
What is Cryptocurrency?
Cryptocurrency is a digital form of currency that can be used as an alternative to cash. It's also called digital currency or virtual currency. Cryptocurrencies are becoming more popular because they allow people to send money across borders without incurring significant fees, and they're not subject to government regulation like traditional currencies. But keep in mind that cryptocurrencies are volatile, so there's no guarantee what you buy today will be worth anything in a year or even tomorrow. For example, if Bitcoin were to suddenly plummet in value (like it did on December 22), then your $10,000 would quickly turn into $1,000. So yes: cryptocurrency investments do have a risk factor involved that investors need to consider before making any decisions.
How do people use cryptocurrency?
Bitcoin was first introduced to the world in 2008 by a pseudonymous developer, Satoshi Nakamoto. It has since grown into a widely-accepted currency that can be used in transactions between two people or as a form of investment.
What are the benefits of cryptocurrency?
The benefits of cryptocurrency are that it's decentralized, meaning no one country or institution controls it. It's also a peer-to-peer payment system, so there are no third party fees like you would see with a credit card. Transactions can be made anonymously or with full transparency. There are some downsides to cryptocurrency as well, including being vulnerable to scammers and hackers.
What are the risks of cryptocurrency?
The risks of cryptocurrency come in many forms. One of the more obvious risks is that you could lose your private key, meaning you would lose access to your coins forever. Another risk is that someone else might steal your private key, but this risk can be minimized by using a hot wallet instead of a cold wallet. If you have a lot of money invested in cryptocurrency, it's important to understand all the risks involved before investing any more money.
How do I get started with cryptocurrency?
The first step in getting started with cryptocurrency is finding a good exchange where you can buy and sell cryptocurrencies. These are online marketplaces where buyers and sellers trade in different currencies. The most popular exchanges are Coinbase, Poloniex, Bitstamp, BTC-e, Bittrex. If you want to get started trading more than one type of currency then I would recommend signing up for a few different exchanges.