Part 1-   https://steemit.com/cryptocurrency/@giantbear/cryptocurrency-explained-for-newbies-like-me

Part 2-  https://steemit.com/q/@giantbear/cryptocurrency-where-does-the-money-come-from-for-newbies-like-me

As explained in my previous post, a digital currency like Bitcoin is created through a block chain.  

 In reality anyone can create their own online currency.  The trick is to find people interested in buying it. We can use Bitcoin for any transaction if a supplier is willing to accept it. Think of it this way.  The more suppliers willing to accept the  currency, the higher the price of the currency.  On the exchange the  price for various digital coins differ.  This is simply because some  coins are more in demand than others.  These coins are only more in  demand because there are so many suppliers that accept it.   

All that gives any digital coin any value is the law of supply and demand. As long as there are people willing to use a coin, there will be a demand.  A coin is only as valuable as the people make it.  Any digital coin only has a value if another person is willing to trade it for something else. 

Think about this scenario:  

If I give you a thousand Dollars in actual paper money, you would know exactly what to do with it.  You will be able to use it to buy something that you want or need.  If I take a thousand dollars and give it to Barney the caveman, he would not know what to do with it.  It will in fact not have ANY value to him at all!!!! 

                                                                        

Can a cryptocurrency actually be exchanged for real paper money? 

For sure!!! Let's get back to the trade scenario.  I give you an X amount of paper money and you give me a cryptocoin. (Depending on the value of the cryptocoin) There are various crypto exchanges/trade markets available online. I find this one very easy to use.  https://www.tradeqwik.com/

Some will allow you to use real "Paper" money to buy a cryptocurrency while others only trade different currencies.  I would really suggest that you do a lot of research before starting to trade online.  The most valuable advice that I can give you is to BUY LOW, AND SELL HIGH. 

The most important thing behind any cryptocurrency are the developers behind it, and obviously the community that put their trust in the project.  

If you are new to this cryptoworld just like me, and you want to follow the development of a new digital coin, I suggest that you follow Viva coin.  You should read the whitepaper to get all the information that you need before you actually invest, but I believe that Viva coin is going to become bigger than we can even imagine.  The developers behind this coin has put in a lot of effort and are very trustworthy people.    

If you want to check it out, please go here. 

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