Today in this article, I will let you know all you need to know about cryptocurrency and how to get Started With Cryptocurrency for beginners. You know, basically, how exactly can you explain cryptocurrency to beginners, to your granny who knows nothing about cryptocurrency? For the past 10 years now, the word cryptocurrency has actually been very popular. I remember hearing it from a friend the very first time about six years ago, and it seemed like one brilliant financial expert, as I’ve been.
Anyways, the bitcoin was the first established cryptocurrency, although there had been previous attempts at creating online currencies with ledgers secured by encryption. Two examples of these is where bid money and bid gold, which are formulated but never fully developed.
What exactly is cryptocurrency?
How can you explain it to your grandparents? Now, imagine your grandma asks you, Hey John, what is cryptocurrency? Wants to how to get started with cryptocurrency. It sounds something spend in Atlantis. Oh no, grandma. It is spent on Earth here. Well, I’m not sure what our command spends in Atlantis, but you’re actually right and wrong in a way, right? Because it’s easy indeed a currency that can be spent however wrong, because it is not your typical physical cash.
Cryptocurrency- How it works
It is basically money that exists in an electronic format, meaning there are simply digital currencies around each individual. Cryptocurrency is fundamentally just a collection of numbers and letters. Hmm. Interesting. So where are they start? They are stored in a digital wallet.
For illustration, it’s just how your electronic email is stored in your mailbox. Although a cryptocurrency wallet address is like a bank account, except there is no card to go with it.
One more thing I will like to add is that you don’t need to provide any personal information to create a cryptocurrency wallet so your identity is not attached to your cryptocurrency wallet like your bank account is. Wow. Sounds like fun. So that means there is no bank to decline my transactions or monitor me.
I remember wanting to send money to my uncle or nephew. I got a declined message that I had accepted sending limit for that day. Any cryptocurrency held in your personal wallet is held directly by you, not custody in the bank like regular money. This means that nobody can shut down your cryptocurrency wallet or block your transaction because you have total control over it.
However, the downside here is that if you lose access to your cryptocurrency wallet or forget to write down the recovery phrase when you make one, you will lose your cryptocurrency forever.
How Secured is Cryptocurrency
No, I’m a bit scared, scared and worried, since there are all digital. Aren’t you afraid of hackers? Now that’s a good question, granny.
Cryptocurrency digital files are created using the same method as cryptography. The cryptocurrency uses a digital led ledger called a block chain to protect itself. A number of computers must validate a transaction before it can be approved and updated. A hacker cannot have every computer in this network.
This makes cryptocurrency networks secure because there is no single point of failure. This is called decentralization, and it’s almost the opposite of centralized setup by governments in bank.
Types of Cryptocurrency to get started with
Well, there are thousands of Cryptocurrency available today, but there are few common and popular available such as Bitcoin, Dogecoin, Ethereum, Binance Coin, just like we have the pound euros, dollars and a lot more.
Well, I think I’ll stop there before I get mentally saturated. I hope you enjoy the article that bit, and this would be a wrap for today on explaining cryptocurrency to your granny. Stay locked into this site by subscribe to our blog so that you get notification when post another educative articles.