LUCKY'S CRYPTO GUIDE FOR BEGINNERS
PART FIVE
WHAT IS CRYPTOCURRENCY?
Thank you for taking the time to check out this article which is the fifth installment of my beginner's guide to crypto trading. In the last article, we covered what Bitcoin is, down to the very finest detail, in plain English so anyone reading can comprehend. Though the article is based on the "Grandfather" of all cryptocurrency, I didn't really scratch the surface on what exactly cryptocurrency is. Though comparatively Bitcoin can shed a lot of light on what crypto is, I think it's best to give a full breakdown on one of the markets KEY terminologies. In the fifth part of Lucky's Crypto Guide For Beginners, I will define and explain to each reader what cryptocurrency is. I hope that this article lands in the sight of someone who truly will learn from it, as my goal is to easily educate every member of the Steemit community who is willing to take my lessons. As always, if you have any questions, please feel free to ask them in the comments portion or email me directly at [email protected] where I will answer them as soon as I receive them. Thanks again for reading this article and helping make my guide a "go to" for the crypto world. Let's get started!
SO WHAT IS CRYPTOCURRENCY?
Cryptocurrency is probably one of the most revolutionary, yet one of the most controversial things in existence today. It has swept through every major news and media outlet, it has made it's presence known in financial markets across the globe and has become one of the leading topics of discussion in 2018. Cryptocurrency has been in the midst of a hostile takeover in today's financial markets, figuratively speaking of course, making itself known to people from all walks of life, all over the planet. But, what exactly is cryptocurrency?
To summarize it easily, cryptocurrency is a digital (electronic) currency (money) that can be used in a variety of ways across the world wide web and even offline. Being a digital asset, cryptocurrency is not produced in physical form, therefor there is no need for a traditional wallet or safe to store it in. A holder simply acquires their currency and then transfers it to a digital storage program (application) called a "wallet". Cryptocurrency is digitally created and identified (on the blockchain) by a single string of encryption code (aka hash) per single unit of currency, making each unit unique and unable to be duplicated. This eliminates the ability to counterfeit digital currency and eliminates the existence of "double transactions", both used across the world to promote various forms of theft. Cryptocurrency is also free of government and financial system oversight, making it controlled only by the network upon which it exists. This means each currency's unique blockchain network controls the micro-economy of the currency, making it unable to be manipulated or restrained by other parties (such as the government, tax offices, etc.)
Cryptocurrency is not the same as traditional currency, such as the US Dollar, for several distinct reasons. Cryptocurrency is not printed when stock runs low, it is created through a process called "mining" in which a large group of computers combine their computer power together to create new units of crypto on the blockchain upon which it exist. Cryptocurrency is also not controlled by any single entity or central bank, meaning it is decentralized (PART TWO) and controlled ideally by it's own micro-economy and network. Cryptocurrency is also a fool proof way to send and receive money, with every single transaction down to the finest detail being forever preserved and recorded on the blockchain (PART ONE). Cryptocurrency provides a great platform for investment opportunities and a way for the average person to passively earn extra income by mining or trading. Now, here comes all the technical stuff.
By the book, cryptocurrency is defined as....
"A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank."
Basically, the breakdown in the first portion of this article was to give you a basic understanding of cryptocurrency. Now we will touch down on a slightly more technical aspect of the term, making it understandable to the average person. Cryptocurrency is a digital currency (electronic money) in which encryption techniques (blockchain technology coding) are used to regulate the generation of units of currency (mining coins on the blockchain) and verify the transfer of funds (by solving mathematical equations on the blockchain), operating independently of a central bank (decentralized, as explained in PART TWO). This is the textbook definition of cryptocurrency, summarized for your understanding,
In this explanation, the only thing that could create confusion is the term mining, which is now going to be briefly explained. Mining is the process in which numerous individuals lend out their computational power across a large scale P2P Network (the blockchain network of the coin they are mining) to essentially combine power to create new units of currency and assist the blockchain in validating transactions (both go hand in hand). The process is based on the fact the blockchain contains very complicated mathematical equations which are solved by the combined power of these computers for a number of reasons. When they mathematical problems are solved, this adds new units of coins to the network, verifies transactions that have been made and adds a new permanent piece to the blockchain to continue growing. Mining is beyond a doubt the most important piece of the cryptocurrency puzzle. Without mining, a cryptocurrency will essentially die off in due time. It cannot create new units of currency to grow, it cannot verify transactions on the blockchain and ultimately the blockchain upon which it is built will go dormant without the power needed to make it operational.
Cryptocurrency was created with the idea of giving the people of this world a reliable, efficient and quick form of money that could be spent on a global scale all while not being hindered by having to exchange money into other asset classes, according to the area you are in. It all started with Bitcoin in 2008 and not long after, new coins based on similar codes and programming emerged left and right. From them came Ethereum, Ethereum Classic, Dogecoin, Ripple, Bitcoin Cash, Zcash, Monero and MANY more. Each currency has it's own unique application and reason for being introduced to the world. Some cryptocurrencies are released as the "faster, more efficient coin", which is similar to car production in the world in the sense that everyone has to have the fastest, most efficient model available. Some currencies are created to create a micro-economy with the company who created it, such as a token used to buy items specifically in a specific phone app or a crypto designed to be used as a casino token. Some coins are created to symbolize equity in the company that they were created by, almost in the sense of a stock holding. Then, some coins are created just to mock the cryptocurrency world or make a general statement, such as Dogecoin. There are numerous reasons why cryptocurrency is in existence and someone from each walk of life can locate one fit to their individual needs.
The reasons some of these currencies were created still intrigue me to this day. Most are designed for the betterment of the world as we know it, which is a thing of beauty. Some are created out of raw human greed and the burning desire to find a quick come up. Some are created just to pitch a great idea that could change the way we see or do things in our lives. Regardless of why they were made, I know one thing for sure, the idea of cryptocurrency has swept the world and taken over the internet by storm. The fact remains that it is very unlikely to find a single place on the world wide web where you will not see some form of advertising or information on cryptocurrency. Being it is digitally based, crypto has found it's niche and dominance on the internet, making it one of the widest spread topics in nearly any media platform, from Twitter to CNBC.
With continued growth, daily media reports and the guarantee to continue evolving in this ever changing world, cryptocurrency stands as an asset class many have utilized to build and store wealth. With cryptocurrency, our lives are able to be changed forever and the possibilities are truly endless. I myself am one of these people, but the biggest question right now is this, ARE YOU?
That concludes the fifth part of Lucky's Crypto Guide For Beginners", "What is Cryptocurrency?". In this article I did everything within my teaching power to break down some of the biggest key terms in the cryptocurrency world. My objective is to make this series of guides a valuable source of information for anyone new to crypto, teaching them effectively as possible, article by article. When I entered the crypto trading world, there were no guidelines, manuals or anything of the sort available to learn from. Anyone who had a manual, wanted you to pay $29.99 to "join" their awesome trading team. Not me, I'm no sucker and I'd be damned if I'd pay that kind of money for a complicated manual I wouldn't even understand. So what did I do? I just dove in and learned everything through countless hours of research along with the ever so excruciating trial and error, and it worked. This series is here to build the community stronger through means of knowledge, it is here for me to share my wealth of knowledge with all of you in hopes of helping you on your journey in crypto. Remember, knowledge is power and empowering our community, well it builds a stronger foundation. Resteem and Upvote this please, do your part in making this content available to the community as a whole. Thank you for reading, hope to see you next time!
Do you want to get paid in crypto just to be healthy? If so click HERE!
Please read my latest article on the upcoming company Bluzelle and the BLZ token. Click HERE!
Please follow me @terminallyill to see thought provoking pieces on crypto, art, music and more!
Please read and resteem the articles below from Lucky's Crypto Guide For Beginners!
PART ONE - WHAT IS BLOCKCHAIN TECHNOLOGY?
PART TWO - WHAT DOES DECENTRALIZED MEAN?
PART THREE - WHAT IS A PEER TO PEER (P2P) NETWORK?
PART FOUR - WHAT IS BITCOIN?
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very good post... I actually upvoted you with the wrong account, but I am happy to see you get the vote! This is a great post and you are doing really well @terminallyill :)
fixed it for you (or at least close)... @terminallyill is good so no vote will go to waste!
Thank you @davemccoy . I think I have some good ideas for us doing some positive work together. I wanted to ask you personally if there are any communities I can sponsor memberships of Steemians to? I would like to run a contest, and honestly give back some of what I earn to the community. I had a good day trading yesterday, so I'm looking to donate 5SBD or so. Let me know my friend!
Check out the article I did on SweatCoin if you have time, I'm sure you will love it.
https://steemit.com/cryptocurrency/@terminallyill/getting-paid-to-be-healthy-crypto-crossing-over-into-fitness
I did check out your article already and I was the one who upvoted you from newbieresteemday! ;) It was good and interesting...
As far as giving back, I think that is awesome! Hold onto that for a day or two and let me give it some thought... I don't want to give a hasty answer and want your efforts to have an impact.. So remind me tomorrow and I will seriously sleep on it!!! You're awesome!
ps... I have one question as i write this, do you have bandwidth problems?
I appreciate it @davemccoy . Let me know as soon as you can, I've actually started the project, just not 100% on where I will sponsoring the Steemians who deserve a sponsorship. I have spoken to Steemitbasicincome , im thinking it will work out on that angle, but if im missing something, please let me know.
I've only once had an issue with bandwidth and that was when i first had started. Haven't had any issue for well over 6 weeks.
I was thinking that I could teach you how to lease SP.. and by doing so you can solve the bandwidth problem... Plus you could offer the same thing as a prize to your contestant... You could give them 50 SP power for 4 weeks as a prize... it would cost you about 2 sbd...
just an idea, but I know newbies are really starved to not have the bandwidth problem for awhile!
That's actually something I would love how to learn regardless @davemccoy . I thoroughly enjoy obtaining new knowledge, so this is right up my alley. And, I just added a nice twist to my contest thanks to you :) Out of the 7 winners, I will personally select one of them to win an SP delegation. I just made a few more great trades on Binance, plus Steem is going back up, so I'll gladly throw that in as an add on :D Let's talk and figure this out. Do you prefer email or facebook? Or what is the best way to tackle this one?
discord.. are you on it?
Thank you @unleashpower ! Please subscribe to my email list if you are interested in keeping up with this guide. I also released an absolutely amazing post last night on SweatCoin I encourage everyone to read, it is a complete game changer and is put together exceptionally well! Thank you for your support and for your upvotes!!!!
https://steemit.com/cryptocurrency/@terminallyill/getting-paid-to-be-healthy-crypto-crossing-over-into-fitness
Transfer 0.100 SBD to @mrbean1 and put the link of your post in the public memo
I GIVE you 4 FOLLOW AND 5 UPVOT and resteem by @mrbean1
Thank you for the offer, I may consider it in the near future :)
Congratulations you have been upvoted and resteemed as part of #newbieresteemday's top 10 posts for the day! ...
We invite you to use our tag to connect with more of our members. To learn more: Come Join Us!!! (Newbie Resteem Initiative)
This is amazing, thank you guys so much!
now i know a bit more on crypto currency thanks a lot :D
Another fantastic guide @terminallyill you certainly have great teaching skills. You were also the winner of my contest to win 2 shares in steembasicincome. The reason I chose your post is because it was by far the best quality. I had a lot of rules in the contest so I was pretty relaxed about them. Even though you didn’t follow all the contest rules the quality of the post far outweighed everything else. Most people just did a short text only blog post for their entry with no markdown script but yours was very professionally done so even though you chose not to follow my blog I respected your decision as asking for followers isn’t 100% ethical on here. You will be able to see the transfer I made to steembasicincome on steemworld with your name in the memo field. I’d love to know more about you to know where you got your great teaching skills from. So Congratulations on winning Devon! If you ever want any ideas for tutorials just let me know. There’s plenty that I’d love to know about. In the future sometime I’d love to see a tutorial on how to buy and sell crypto using the electrum wallet and how to put money or cryptocurrency in there in the first place. I’d also love to know how to use dtube. Keep those great tutorials coming. They are certainly very helpful
Thank you @markkennard ! I am beyond honored to have been chosen by you as your contest winner. I do apologize, deeply, for not following the initial rules. I am always more than willing to edit any comment that contains a "follow me" link. I'm still learning how things operate on Steemit, so please believe me that it is not out of a lack of morals or ethics, it was more as me being accustomed to traditional social media outlets such as FB and Twitter. I will definitely note that, and actually I'm glad you mentioned it because I will use it as part of an article I will be releasing soon. I'm sorry for that, but none the less am very thankful you looked past my blunder to see the true quality of my workmanship and noticed it :) You are certainly one of Steemit's Angels!
I am definitely up for suggestions on tutorials and actually prefer to have a community consensus on what they would like to learn. What you just brought to the table is a way for me to produce the most effective material by finding exactly what my fellow Steemians would like to be educated on. Every suggestion you just made, is now on my list for tutorials to release and will be done within the next week I assure you, if not over the next couple of days. Thank you for the suggestions, the constructive conversations that we have continue to build my portfolio, my ground in Steemit and my desire to help the community as best as possible. As long as I am able to educate others and help this platform grow, you can count on me providing quality content day in and day out!
I will also be releasing a contest today. You will be blown away :) Please keep up on my feed, I am typing it up as we speak. Once again, thank you for everything my friend! I'm looking forward to working with you more as the days come and go!
If you ever get stuck for ideas just let me know. There is plenty I have tried to learn by following other people’s tutorials but they haven’t explained it well and I just ended up frustrated. I’m looking forward to your contest so I’ll keep checking back on your feed
Absolutely my friend, if you have any other ideas available now, throw them at me and I'll put them in the cooking pot ;) I just launched my contest, please check it out and spread the word. This is a HUGE opportunity for some folks! Thank you for inspiring me!
I’ll have a think about some ideas and get back to you. I’ll go check out your contest
Resteemed as part the Steemit Newbie Resteem Initiative and newbieresteemday. Great post and keep up the awesome work.
Thank you @mudcat36 , I am grateful beyond words honestly! I have just released a huge contest event, please share it and spread the word. It is for the betterment of the community!
https://steemit.com/contest/@terminallyill/contest-time-10-steem-being-given-away-in-prizes-this-is-a-must-read-article-for-everyone
Of course and happily. I will pop onto your blog and give it a look now.
thanks for all the wonderful information! I've got to go back and read the rest of your guide! awesome post!
You have been resteemed as part of #newbieresteemday. Congratulations on your content Newbie and as always, Keep Steemin’! I invite you to learn more about the initiative and Come Join Us!!! Newbie Resteem Initiative
join the Steemit Newbie Resteem Initiative Discord channel here: https://discord.gg/xcekaZU
Thank you @amariespeaks ! You have just done me a tremendous service that I am extremely grateful for! You guys are making Steemit a better place, one resteem at a time! Please, share this contest post with everyone that you know. I'm holding a huge event to help grow the community in a positive way!
https://steemit.com/contest/@terminallyill/contest-time-10-steem-being-given-away-in-prizes-this-is-a-must-read-article-for-everyone
you're welcome! going to check out your post now :) I also saw you've got a d.tube channel - I love hiphop and rap and am always looking for new artist to listen to! I do a random Woke AF hiphop playlist on here every once in a while.. I have a rough draft of a Steemit verison in the works where I want to feature Steemians who rap or make hiphop music. If you think it's something you may be interested in let me know.
Oh absolutely, I am always up for having my musical works promoted and shared :) I'm also up for working with you on any projects you may have in the works. Please, feel free to check out my music on dtube. I made EVERYTHING, from the beats to the mastering, it came from my little home studio lol. Some of it was concept work in which I was paid, some of it is my honest view on life. A little bit for everyone, with more in motion!
Thank you @amariespeaks I'm very happy to have met you and blessed to be able to work with you!
you're welcome and I'm gonna check out your d.tube, I will keep you in mind as I get closer to my next hiphop post. I got a few other projects lined up before this one but it's not too far away lol
I appreciate it, let me know what you think :) Don't forget to let me know if you want to work together in the future. Good luck with your Steeming!
I will be around! check out discord if you're not already on there the #newbieresteemday channel is great - I'm over there quite a bit amariespeaks#9425. I won't forget! ;-)