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Cryptocurrency for Beginners

How DOES Cryptocurrency work? A Step-by-Step Guide for beginners

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Cryptocurrencies work just any any online banking system except only exist online on their blockchains but do not exist in physical coins and bills like traditional government issued currencies. 

How DOES Cryptocurrency WORK?

Cryptocurrencies are a new type of banking and payment system which exists only online.

In this guide,  we will cover how does cryptocurrency work

 

 

 

 

How Cryptocurrency work?

Cryptocurrency works just any any online digital banking system except only exist online on their blockchains but do not exist in physical coins and bills like traditional government issued currencies.

So just like online banks, you need an account (wallet) to store your money.

If you are used to travelling abroad you should have a basic understanding of foreign currencies.

Let’s say for example, you live in the US but you need to go to France.

So you would need to change your US dollars to EUROs so you can buy the best buttery croissants in the world found in Paris , right?

Therefore, you would need to change your dollar bills isn a foreign exchange bureau before you head to or out of the airport, depending where you live.

Well, cryptocurrency works in a similar fashion, you would have to go a cryptocurrency exchange to change your USD or local currency for the cryptocurrency that you want,

 

How to store your crypto

Just like a bank, you need an account to store your money.

In cryptocurrency, you need a crypto wallet to store your crypto.

Click here for a complete guide on the types of cryptocurrency wallets  and how are they for

 

How to receive crypto

Just like your online digital banking system, you need to provide your account number to the other person in order to receive money.

This is also known as the public key.

The public key (receive address) , should not be confused with your private key which works like your wallet login and password.

 

Pro Tip: before to check the first and last two digits to be sure you provided the entire address

 

How to send crypto

To send cryptocurrency, you just need to ask the person for the wallet address (public key/receive address) of the crypto they wanted to receive .

Enter the amount and they should receive it within minutes.

 

How to get crypto

You can buy Bitcoin and the most popular cryptocurrencies ( altcoins and blockchain) tokens on beginner friendly cryptocurrency exchanges such as Binance or Coinmama.

 

How do Cryptocurrency transactions work?

Cryptocurrencies work on a technology called blockchain.

What makes cryptocurrencies so disruptive (and awesome) is that you can potentially SEND MILLIONS OF DOLLARS worth of cryptocurrencies to anyone around the world WITHIN MINUTES FOR A ONLY A FEW HUNDRED DOLLARS.

Cryptocurrencies eliminate middle men such as banks, Western Union,etc.

Blockchain also reduces transfer fees.

 

Who determines prices of cryptocurrencies?

As you know, central banks determine the prices of the currencies which result in the local currencies being over-valued (inflation).

The problem with a devaluating currency is that everything becomes more expensive.

Cryptocurrency prices are controlled by the demand and supply

 

What is the biggest cryptocurrency

Bitcoin is the first and the most popular cryptocurrency.

BTC is the cryptocurrency which started the anti-inflation revolution during the 2008 financial crisis.

At the time of writing, Bitcoin has a daily trading volume of $13 billion.

In other words an average of $13,000,000,000 of Bitcoin is being traded daily.

Many corporate investors like Tesla, Facebook, Twitter and Microstrategy are starting with Bitcoin.
 


 
 

Is Cryptocurrency for you?

Cryptocurrency is unavoidable like the internet.

The European Union is in talks for creating their own ( at the time of writing this article).

El Salvador has made Bitcoin its official currency.

 

The biggest risk at the time is local laws and regulations.

Bitcoin and cryptocurrencies are banned in some countries

China had banned Bitcoin 11 times while releasing its digital currency.

However, legal frameworks look positive and are evolving.

Russia who owns the biggest mining farms in the world, banned crypto, created a framework just before going to war with Ukraine.

 

Is cryptocurrency the future of money?

For thousands of years man has used precious metals such as gold and silver as currencies.

Gold has served a form of payment for thousands of years across civilizations.

In modern times gold is still seen as a safe have investment compared to government controlled currencies like the USD or dollar.

The internet is like a global digital economy and the digital economy needs digital assets and currencies.

 

 

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