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Monday, October 18, 2021

Understanding Cryptocurrency: For Beginners

What Is Cryptocurrency?

Also known as crypto cash, it is a form of payment that you can use online in exchange for services or goods. If you happen to buy any goods from that company, you can use these tokens in exchange for the same.
As far as the number of cryptocurrencies available, you will find that more than 6700 various cryptocurrencies are publicly traded according to CoinMarketCap.com. 

They raise funds through ICOs or Initial Coin Offerings. As of September 2020, the total value of bitcoins exceeded $370 billion. The most popular among all of them was pegged at $210 billion. This was stated again by CoinMarketCap.com. 


How To Buy Cryptocurrency- Cryptocurrency Investing

Bitcoin and some cryptocurrencies can be bought with US dollars but most of them require that you buy them with bitcoin or any other type. 

If you are planning to buy them, you must have a “wallet”, which is an online app that will “hold” the currency. If you’re buying Monero (XMR) be sure to use a secure and private Monero Wallet that keeps all your transactions safe and untraceable. You have to open an account on the exchange where you transfer real money. 

One of the popular cryptocurrency trading exchange is Coinbase. Here you will be able to sell, buy, and exchange after creating a wallet. 

Getting Into Cryptocurrency

Remember, they are not insured by the government in the United States as you would expect the other bank deposits to be.

However, possessing bitcoins or cryptocurrencies means you have them in an online wallet that might be provided by a company.

Few risks associated with them are-

  • There is no guarantee that you will earn a profit
  • No two cryptocurrencies will have the same value
  • There may not be legal protection for the investments you make

In a nutshell, if you are interested in investing in cryptocurrency, read between the lines. Do your bit of homework before you dive-in. 

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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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