The Beginner’s Guide To Crypto Currency: A Blog About Crypto Currency for Beginners
By Space Coast Daily // December 3, 2022
In the past two or three years, the world has seen a massive rise in the popularity of cryptocurrencies. They’ve been everywhere: from social media to the news, to even your local neighborhood! It’s been all over the place.
However, we wouldn’t blame you if you had no idea what cryptocurrencies actually are. Aside from the surface-level whispers of people getting rich through crypto or it being dubbed the next big thing, it’s understandable how crypto is still a relatively abstract idea to the ordinary person.
That’s why, in this article, we’ll be providing you with a beginner’s guide to all things cryptocurrency. We’ll be answering the question of what crypto actually is, how it works, and why it’s being called the next evolution of payments as we know it.
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Now, it’s time to delve into the world of crypto.
First of all, what are cryptocurrencies?
In the most simple terms, cryptocurrencies are digital currencies that use a system of cryptography (in other words, numbers or code) to secure and maintain transactions.
Cryptocurrencies have the unique characteristic of not having a central monetary authority like a bank.
Instead, they work through a decentralized system where all the users of a given crypto verify and maintain each transaction through a massive computer network.
How does this work?
Cryptocurrencies are built and based on what’s called blockchain technology. Think of the blockchain as a distributed ledger that maintains and stores all transactions in a particular currency.
In a “blockchain,” blocks of information containing data about each transaction are chained together. These blocks of data are usually comprised of info about who the Sender is, the Receiver, and the amount transferred in any given transaction.
These are blocks of data are chained together, hence the term blockchain, to create an interwoven structure that becomes extremely hard to tamper with given that each block is connected with one another.
If one were to tamper with a given transaction, he or she would have to change all other blocks chained to it. This layer of security is one of the main pillars and advantages of cryptocurrencies.
What are the main examples of cryptocurrencies?
In 2022, there are now a number of cryptocurrencies available for you to try. However, the most popular one is still Bitcoin. Bitcoin is where the crypto world saw its most significant boom in terms of popularity. So much so that all other coins that are not Bitcoin have a name: altcoins.
While there are differences between these coins, they are all types of cryptocurrencies and have the same basic characteristics.
What are the advantages of giving cryptocurrencies a try?
As mentioned earlier, the main appeal of cryptocurrencies is the security it provides to end users. The blockchain is incredibly hard to tamper with, giving you the peace of mind that your hard-earned money is not going to be stolen or anything.
There is also the advantage of it being a decentralized system. Since all transactions are verified by all users that are part of the computer network, you won’t have to worry about a bank or a monetary authority losing your money or doing any funny business with your dough.
Last, but not least, is the fact that it plays very well with the digital world. As we continue to approach a more digitalized society, cryptocurrencies maximize the innovations we have made in terms of consumer electronics.
Providing users with a secure digital currency, one which is quick and fast, is an easy sell for everyone in this day and age. This is especially true since almost everyone today is connected to the internet in one way or another.
Are there disadvantages, though?
Like all things in the world, cryptocurrencies do have some disadvantages. The biggest one would be its volatility. What do we mean by this? Since most cryptocurrencies are still very young, the value of crypto still regularly goes up and down depending on a ton of factors such as supply and demand.
However, there is a case to be made that this volatility is something that many crypto users understand and accept since there are still many positives that come with it.
And there we have it! That’s some of the main things a beginner should know about cryptocurrencies. Whether or not you should give it a try is entirely up to you. But we hope that you’re now in a more informed position on if cryptocurrencies are something in your near future. Best of luck!