Understanding Cryptocurrencies: A beginner's guide

cryptocurrencies have transformed the way we think about money, investing and financial transaction. If you are new to this digital currency landscape, here's a brief guide to help you to get started

What are Cryptocurrencies?

Cryptocurrencies are essentially digital or virtual currencies that are secured by Cryptography. They do not come from government of a country like traditional currencies and work of decentralized networks, relying on blockchain technology. A blockchain is a disturbed ledger that stores all transactions across a network of computer in a manner that ensure both transparency and security.

How do they work?

Cryptocurrencies are basically based on a technology called blockchain, which refers to a block which contains transaction data. Every block is interconnected with previous one such that a history of all transactions become secure and can't be tampered with. If a person sends a Cryptocurrencies this transaction gets unverified by miner, which are participants in the network, and it will become a part of blockchain.

Well known currencies 

Bitcoin [BTC]; - The first and the most developed Cryptocurrency, developed in 2009 by a mysterious person or a group of individuals called Satoshi Nakamoto. It is still most widely used and known one.

 

Ethereum [ETH]; - Not only it is more than currency but also a platform that enable developers to build decentralized application (dApps) using smart contract, self executing contract with the term directly written into code.

How to buy and store Cryptocurrencies 

select a Cryptocurrency exchange: You can buy, sell and trade cryptocurrency in exchange platforms such as Coinbase, Biance, and verification required and add a payment method 

            In store wallet storage is pretty important after purchasing the Cryptocurrency, and this is done with either a software wallet accessed through computer or mobile app, but a hardware wallet, in terms of what it represents, is far safer because its keys lie within an offline system.

Risk and reward 

Investing in Cryptocurrencies is pretty volatile. The price of the same can rocket sky high within a matter of time or plummet downwards within a shortest period imaginable. Good research must be done in understanding trends in the market, as well as to only invest what you can afford to lose.

Conclusion

Cryptocurrencies are open up with exiting opportunities and pose challenges understanding the basic concept of how they function, where to buy them, and what the associated risks are will make exploring this new financial frontier less intimidating. Wethers you are considering investing or just want to learn, the world of Cryptocurrency is full of possibilities. 

Note: - The data may be wrong or fluctuate from exact cross check from official website