Beginner's guide to get started with cryptocurrency.
We are living in 2021, in a digital era. where there is competition everywhere, where people are expecting more from their life. And thus if they have free time they push themselves for side hustles to earn more income.When it comes to side hustles the present talk of the town is Cryptocurrency. Yes, by investing in cryptocurrency, one can earn a huge income. Are you still unaware of cryptocurrency investment?
Do you also want to invest and earn a good income?
Well, this beginner's guide will give you a deep insight of how to get started with cryptocurrency.
In this article I have included:
- What is cryptocurrency?
- Why are they so popular?
- How do cryptocurrencies work?
- The different forms of cryptocurrencies.
- How do I buy cryptocurrency?
- Safety and security concerns.
What is cryptocurrency?
Cryptocurrency is a digital payment system through which anyone can send and receive payments from anywhere across the globe. It is a peer-to-peer system that doesn’t rely on banks to verify transactions.
When the cryptocurrency funds are transferred, transactions are recorded in the public ledger. This currency is stored in a digital wallet.
Why are they so popular?
For the past few years, Cryptocurrency is something that has been a hot topic of discussion. What was once only in practice for a particular community, is now a topic of discussion all over the globe. But what may be the reason, people are paying more attention to cryptocurrency all of a sudden?
The reason why cryptocurrency has become so popular is because of its ease of transfer. To exchange cryptocurrency between two parties, there is no need for an intermediary.
How do cryptocurrencies work?
Cryptocurrencies are computer-generated currencies. They are brought into existence by “mining” which, as its main function, has the purpose of confirming a record of accounts and movements, called the blockchain. Coins are given to successful miners as a reward.
Coins, once generated, are stored in wallets that are password protected. Coins can be sent from one wallet to another. Each transaction gets appended to the blockchain after being verified by the mining activity.
Some of the Cryptocurrencies ruling the Crypto marker are here
Bitcoin: Bitcoin is operated within a network of computers, and a database of all the transactions that every participant makes in the blockchain network.
Bitcoin is the talk of every town. However, there might be some who are still wondering what it is. Well, Bitcoin is the first ever digital currency that is used and distributed electronically. It is a decentralized currency as the control does not lie on any central authority.
Litecoin: Litecoin currently is my favorite instrument because of it’s relatively approachable cost and hence, please do take my opinion on it, coming from someone who really believes in it.
Litecoin has many advantages:
- Litecoin has been in existence since 2011.
- The block generation time of Litecoin is approximately 2 minutes to Bitcoins 10 minutes. Hence, the speed of transactions on Litecoin would definitely be 4 times faster than Bitcoin itself.
I believe that Litecoin would be an extremely useful cryptocurrency going forwards in the future.
Ethereum: Ethereum is probably the second most important cryptocurrency after Bitcoin that offers another decentralized layer for building applications on its framework. Ethereum relies on the blockchain, similar to Bitcoin, but uses it in a different manner, using it to run the programming codes of applications.
Then, how do I buy cryptocurrency is your question, right?
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum.
Safety and security concerns:
Dealing with cryptocurrency doesn’t always have to be risky, if you have good knowledge about the market. At present, there are numerous cryptocurrency options available to us but not all options are safe.It is imperative to take a certain amount of precaution before investing your hard-earned money in cryptocurrency. It is essential to conduct a background research on the creator of the coin.
It’s safe to say, if you are just a beginner, you need to master a lot of elements before you can even consider becoming a part of this technology. To begin your cryptocurrency journey, the above article will guide you in the right direction.