Cryptocurrency 101: Understanding the Basics
Have you heard of cryptocurrency? It’s a type of digital money that’s gaining popularity all around the world! Cryptocurrency can be used to buy goods and services just like traditional fiat currencies such as dollars, euros, and yen. But it’s also used within closed systems to pay for specific platform services. If you’re a beginner wondering, “What is cryptocurrency and how does it work?” we’ve got you covered with our comprehensive guide.
The total value of all cryptocurrencies in use around the world reached nearly USD 600 billion by the end of December 2017, which was almost 40 times more than a year earlier. While some people buy cryptocurrency for speculation and investment, it’s also becoming increasingly popular as a means of payment for goods and services. Here are some of the reasons why:
It’s secure and impossible to counterfeit due to the complex mathematics and military-grade cryptography involved.
It’s decentralized, which means that no bank or government is needed to issue the money, and no middleman is needed to transfer funds. This can make transactions cheaper and quicker!
There are more and more opportunities to use cryptocurrencies to pay for goods and services all around the world.
It helps people without access to traditional banking become part of the worldwide financial system.
It’s programmable money, which offers many more options for how it can be used and adapted to one’s needs.
It offers new ways for businesses to reach new customers and raise capital.
Getting started with cryptocurrency is becoming increasingly simple.
If you’re new to the world of cryptocurrency, it’s good to know that the best-known cryptocurrency is Bitcoin, which came into existence in January 2009. But there were many unsuccessful attempts to create such currencies earlier. Bitcoin was created by Satoshi Nakamoto, but no one knows whether that’s a he, she, or group of people. Today, there are more than a thousand cryptocurrencies in use, which can be grouped into “coins” (Bitcoin plus other currencies collectively known as altcoins) and tokens, such as those used to pay for the services of a specific blockchain-based platform. Altcoins offer varying levels of anonymity, transaction speed, and other features.
If you’re wondering how cryptocurrency works, we’ve got you covered with several of our guides. Almost everything you need to know about cryptocurrency is answered on our website. If you can’t find the information you need, just let us know and we’ll be happy to help!
