Understanding Bitcoin, Cryptocurrency, Blockchain

The only people who haven’t heard about cryptocurrency are those born yesterday – figuratively speaking. If you own a smartphone and use the internet, you’ve heard of it one way or another. Whatever you’ve heard of them, here’s a fact: virtual currencies are a phenomenon in the digital world today.

Thousands of cryptocurrencies have gone into circulation following Bitcoin’s not-so-grand entrance in 2009. Digital currencies are the gold of the modern world. Therefore, if you’ve decided to buy xrp with paybis, Dogecoin, or whatever crypto your eyes are on, we have a piece of information you’ll find useful.

As a beginner, before you get into trading or exchanging any of the digital currencies available in the cryptocurrency market, you have to understand the meaning of basic terms used. Don’t just be impulsive about your investment, you should be calculative as well.

There are many ways to refer to cryptocurrencies, including digital assets, virtual coins, digital coins, and virtual currencies. Buying cryptocurrency works like fiat currency in that you can use it for trading. You trade goods and services with cryptocurrency, whether directly or indirectly. Also, you can invest in cryptocurrency; this is when you buy digital coins and leave them in your wallet rather than spending them. Like in gold or real estate investment, the value of digital coins increases daily.

Digital currencies like Ethereum typically work on a technology called the blockchain. However, some don’t; those are said to not be true cryptocurrencies or it is possible that they belong to the class of new cryptocurrencies. The major characteristic of a cryptocurrency is that it runs on blockchain technology.

Blockchain technology is the most secure on the planet – one of crypto’s selling points. In simple terms, here’s how blockchain works: no government, bank, or body is watching over your digital currencies. It is transparent and offers optimum protection for users who want to invest in cryptocurrency.

Cryptocurrency is amazing; it has made many people overnight millionaires. There is also the flip side of it as many have lost a fortune overnight because of poor trading decisions. Don’t be surprised if someone is shocked you don’t have crypto assets yet.

However, it is not all sunshine with virtual currencies. They have their good times and bad times; sometimes, the bad outweighs the good, but that depends on what category of investor you are. Let’s briefly examine the merits and drawbacks of cryptocurrency trading and investment.

Having familiarized yourself with cryptocurrency, and its pros and cons, if you still want to invest, here are safe ways to do so.

Step 1: Choose an exchange service; consider its security features, user interface, customer support, and digital coins supported. For example, if you’re interested in Litecoin, you will want an exchange service that supports it.

Step 2: Register/sign up on the exchange platform; some may require verification, and some may not. Either way, follow the instructions on how to register.

Step 3: Buy cryptocurrency and start trading or investing.

In conclusion, cryptocurrency is not a difficult concept to understand. However, it requires thorough research to avoid sob stories. Therefore, whatever digital coin you settle on, you want to hold enough information before buying or investing. Finally, we recommend only investing money you can spare to lose to be on the safe side.