What's a cryptocurrency?
A cryptocurrency is simply Digital money (digital form of cash). It can be used to make several forms of payment. Due to is digital nature it can also be sent to friends and family anywhere in the world.
You see, traditional online payment gateways are owned by organizations. They hold your money for you, and you need to ask them to transfer it on your behalf when you want to spend it.
In cryptocurrencies, there isn't an organization. You, your friends, and thousands of others can act as your own banks by running free software. Your computer connects with other people's computers, meaning you communicate directly – no middlemen required!
To use cryptocurrency, you don't need to sign up for a website with an email address and password. You can download a wide variety of apps onto your smartphone to begin sending and receiving within minutes.
Why is it called cryptocurrency?
The name cryptocurrency is coined from two words "cryptography and currency" . With cryptography, we use advanced math to secure our funds, making sure that nobody else can spend them.
You may not need to understand all the intrigues involved in cryptography – applications you use will do all the heavy lifting. You won't even know what's going on under the hood.
ADVANTAGE OF CRYPTOCURRENCY OVER OTHER PAYMENT GATEWAY
1. No one can stop you from using cryptocurrency. Centralized payment services, on the other hand, can freeze accounts or prevent transactions from being made.
2. Censorship-resistant : Because of the way the network is designed, it's virtually impossible for hackers or other attackers to shut it down.
3. Cheap and fast payment method : When you make a transaction to someone at the other side of the world, your money can be with them within seconds – at a fraction of the cost of an international wire transfer.
We can't speak of Cryptocurrency without talking of Bitcoin being the King of Crypto. Every other cryptocurrency is generally referred to as Alt-coins.(e.g Ethereum, Litecoin, XRP e.t.c). Now, lets talk Bitcoin.
Who invented Bitcoin?
Amazingly, nobody knows who invented Bitcoin. We only know them by their screen name - Satoshi Nakamoto. Satoshi could be a single person, a group of programmers, or if you believe some of the weirder theories, a time-traveling alien or secret government team.
Satoshi published a 9-page document in 2008, detailing how the Bitcoin system worked. Months later, in 2009, the software itself was released.
Bitcoin provided the foundation for many other cryptocurrencies. Some were based on the same software, while others took a very different approach. There are very many crypto coins these days, some are faster than others, some are more private, some are more secure, and some are more programmable.
The technology on which a vast majority of digital currencies (Cryptocurrencies) are based on, is known as blockchain.
So, What is blockchain?
Don't be confused by the technobabble that people use to describe "blockchain." A blockchain is just a database. It isn't a particularly sophisticated one, either - you could create it in a spreadsheet with minimal effort.
There are some peculiarities with these blockchain databases.
The first is that blockchains are append-only. That means that you can only add information - you can't just click on a cell and delete stuff that you've already added, or change it in any way.
The second is that each entry (called a block) in the database is cryptographically linked to the last entry. In plain English, each new entry must contain a sort of digital fingerprint (hash) of the last one.
And that's it! Since each fingerprint points back to the last one, you end up with a chain of blocks. Or - as the cool kids like to call it - a blockchain.
A blockchain is immutable
A GLANCE AT SOME OF THE WAYS YOU CAN EARN WITH CRYPTOCURRENCY
1. TRADING
2. INVESTING
3. PASSIVE INCOME GENERATION
4. PARTICIPATING IN AIRDROPS
TRADING
Blockchain and cryptocurrencies are already used in a lot of different areas. Undoubtedly, one of the biggest current use cases is speculation.
Trading generally implies a shorter-term approach to generating profit. Traders may jump in and out of positions all the time. But how do they know when to get in and out?
One of the most common ways to make sense of the cryptocurrency market is through an approach called technical analysis (TA). Technical analysts look at price history, charts, and other types of market data to find to predict accurately and get a good chance of making profit.
Another form of trading is fundamental analysis.
Fundamental analysis and Technical Analysis are the two major forms of trading and you will need to understand them to be a successful trader. As the lecture progresses I will handle those two concepts intensively, cos they are the bedrock of crypto trading
INVESTING
Investors look for long-term bets based on the fundamentals of an investment. For example, how much profit a company is making. While cryptocurrencies are a new and unique type of assets, they can also be viewed through a similar lens.
Many Bitcoin investors follow the "HODL" philosophy. This means that they believe so deeply in the success of Bitcoin that they don't intend to sell but for a long time.
After going through that, you may decide that you want to become a Bitcoin HODLer. Well, you could become one in a matter of minutes.
The onboarding process is smooth and quick. You don't have to jump in with large amounts, either. You could start with as little as 15 dollars!
If you believe in blockchain technology, cryptocurrency is a great long-term investment. Bitcoin is seen as a store of value, and some people think Bitcoin can replace gold in the future. Ethereum, the 2nd largest cryptocurrency by market cap, also has huge growth potential as a long-term investment
REASONS TO INVEST IN CRYPTOCURRENCIES
One of the fundamental questions is why would you buy cryptocurrencies at all. As it turns out, there are many reasons to do it:
1. Accessibility : Digital coins are widely accessible and you can trade them wherever and whenever you want.
2. Security : Investing in crypto money, you don’t have to fear identity thefts or frauds.
3. Lower fees : The costs of cryptocurrency transactions are much lower than traditional exchanges.
4. Portfolio diversification : You can use crypto coins to diversify the portfolio of investments and broaden the scope of work.
5. Faster transactions : Cryptocurrency operations are conducted almost instantly, so you don’t have to waste any time at all.
4 CRYPTO COINS YOU CAN INVEST IN
1. Ethereum
Ethereum is based on a popular dApp processing platform, which is exactly where it derives its power from. According to live price tracker, this coin currently costs over $1,526.217 but a year ago it was about $270. Some analysts even claim that Ethereum can even reach Bitcoin. Although I disagree with this statement, but believe Ethereum is going to grow bigger than it is now.
2. Bitcoin
The list of the most promising cryptocurrencies would be incomplete without Bitcoin. After three years of major ups and downs, Bitcoin finally stabilized in 2019 and since then it has been growing steadily and now at a price of $49,793.30 . It’s the best solution for investors who want to play safely and hope for a small long-term return on investments.
3. Litecoin
Litecoin may be much cheaper than Bitcoin or Ethereum, but it doesn’t fully reflect its market potential. For this reason, investing in Litecoin could be a huge opportunity. It currently costs somewhat about $194.19 so you don’t have to risk too much. Secondly, Litecoin has technical preconditions to become a global transaction network, which is more than enough to make you consider investing.
4. Binance Smart Chain
BSC is a very good investment option, it is a fast and secure decentralized digital asset exchange. With so many programmes coming up on it.
Conclusion:
Investing in cryptocurrencies can be a highly profitable business opportunity, but you have to be able to follow the latest market trends and understand how to buy or sell on time.
PASSIVE INCOME GENERATION
So far, we've talked about trading and investing. These methods generally require a lot of time, which not everyone has. If you're one of those busy but efficient people, we have some other options for you.
As Warren Buffett, one of the most successful investors of all time, said: "If you don't find a way to make money while you sleep, you will work until you die."
Good news, the world of cryptocurrency offers many opportunities to earn passive income. You can basically use your crypto holdings to make more crypto!
Why isn't everyone doing this? Well, they probably don't know. But now you do!
One of the ways to earn passive income is by securely lending your holdings to other people. In exchange for the opportunity to borrow your funds, they'll pay interest to you.
There are many ways to earn passively from cryptocurrency network. One of these is through a process called staking.
What is staking?
In simple terms, staking means getting rewards for locking up coins. So, if you invest in a coin that supports staking, you could build up a larger holding over time.
Example of this, is staking your BSC in Binance Launchpad to earn DODO. DODO is a new and promising Cryptocoin.
12 Terms Every Crypto Trader Should Know
Whether you're in the stock market, day trading Forex, or new to cryptocurrency, you'll hear a lot of trading terms that may sound unfamiliar. FOMO, ROI, ATH, HODL, what do these all mean? Trading and investment have their own language, and it can be daunting to learn all these new terms. However, they can be quite useful if you want to keep up with what's going on in the financial markets.
Fear, Uncertainty, and Doubt (FUD) : Spreading of fear and misinformation to gain an advantage.
Fear Of Missing Out (FOMO) : The emotion you feel when you panic buy.
HODL : Buy and hold on to it for a long time!
BUIDL : Keep your head down and build the next financial system.
SAFU : Funds are safe!
Return on Investment (ROI) : How much money you are making (or losing).
All-Time High (ATH) : The highest price ever recorded!
All-Time Low (ATL) : The lowest price ever recorded.
Do Your Own Research (DYOR) : Don't trust, verify.
Due Diligence (DD) : Smart people make decisions based on facts.
Anti Money Laundering (AML) : Regulations that prevent criminals from hiding their money.
Know Your Customer (KYC) : Regulations that make exchanges verify your identity.
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