About blockchain and cryptocurrency – Here’s what you need to know
Think of a cryptocurrency as a digital version of fiat currency such as the USD or GBP.
Cryptography is used to secure the transaction as well as control the creation of new coins. In layman’s terms, it is a digital currency that is mined instead of printed.
How does one acquire a cryptocurrency?
A cryptocurrency such as bitcoin is acquired by purchasing the coin via a wallet in typical fiat currency (this can be done via a credit card or wire transfer) and the wallet then allows you to buy various different cryptocurrencies using your fiat currency.
What is a Blockchain?
To begin with, a block is where the data for the transactions are stored, the linked decentralised series of the blocks is what is named a blockchain.
Send and recieve money at cheaper and flexible rates with low transaction fees.
Blockchain is the structure of relational data storage that provides the ledger and backbone of the coin.
How does one invest in crypto?
There are numerous ways of investing in cryptocurrencies, these range from simply buying and holding the coins on an exchange.
This can be perceived as risky, as exchanges have been hacked and coins stolen, for example, Mt. Geox.
Trading on one of cryptocurrency exchanges (still risky as the funds are held on the exchanges’ hot wallet, and many of these exchanges are unregulated) storing on a computer wallet and the risk of being hacked, paper storage (which can be tedious and troublesome) or a hardware wallet which is a combination of software and hardware (and most popular at present) are some of the options to trade these cryptocurrencies.
Entering the market
The first thing you’ll need to do is decide which cryptocurrency you wish to purchase.
There are hundreds to choose from, and each is slightly different from the other.
about blockchain and cryptocurrency, here’s what you need to know before venturing into it.
Rather than researching the multitude of cryptocurrencies currently in existence and diving headlong, especially for first time investors, it may be a better idea to spend some time following the trends and getting to know the basic and most prevalent currencies, and then begin to branch out once the basics of a few tokens are fully understood.
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