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Welcome to the cryptoworld: what are cryptocurrencies?

17 31 exc boost
Avatar for francescawrites
Written by   114
10 months ago

Knowing cryptocurrencies, alt-coins, & stablecoins: the currency of today's digital world.

Back then, as a crypto-beginner, I first heard the word "Bitcoin" and referred to it as the entirety of 'cryptocurrency' since that's the only digital currency I know, and maybe if you're just a newbie in the crypto world, Bitcoin may be the first coin that was introduced to you...

But I was wrong, very wrong.

So for today, as your beginner's crypto guide, I'll be discussing out "what are cryptocurrencies?" and will try to answer different questions I wish I knew before leaping into the world of digital currency.

photo courtesy from yale.edu

What are cryptocurrencies?

Cryptocurrencies are digital assets designed as a medium of exchange. Derived from the word 'secret' and 'hidden' — cryptocurrencies uses a secured type of advance cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

Simply speaking, cryptocurrencies are an innovative way of transaction. The use of these generated virtual tokens are handy, ergonomic, and secured. By which such transactions made via cryptocurrencies are private, away of prying eyes.

There are several types of cryptocurrencies and uses for each type. We have Bitcoins, alt-coins, and stable coins. So far, the most popular cryptocurrency is the Bitcoin. It was created by someone aliased as Satoshi Nakamoto. Since its creation on 2009, the value of these coins had grew relatively. But well, with the rise of Bitcoins, competitors was created which are called as alternative coins better known as 'alt-coins.' These virtual generated tokens are similar to Bitcoins specifically its buy, sell and trade functionality but with several rules altered to appeal different users. The distinctions of these virtual tokens made way to the creation of different blockchains that offers lesser fees and other ergonomic functionality. With which further innovated duly by the utilization of Dapps which I will talk more about soon.

With the steady uprise of cryptocurrency fame comes other coin options. Well, we all know for a fact that cryptocurrencies are infamous of its volatility and so to prevent losing such extreme amount and to have a stabilize amount close to a fiat currency, stablecoins was born. A stablecoin has a value relatively close to a U.S dollar. Sometimes, stablecoins values were tied to other assets like gold or any other precious element. In other words, you can think of stablecoins as the digital crypto dollar.

Please take note also that stablecoins may or may not be backed-up by a certain fiat. Nonetheless, stablecoins can be your entry point to decentralized finance exchanges.

photo courtesy from mises.org

What is the difference between fiat and cryptocurrencies?

Unlike fiat currencies, cryptocurrencies are not issued by any central authority that makes them resistant to manipulation or interference of government. Instead of having a tangible quantity of the amount you hold, cryptocurrencies are 'virtual tokens' which is stored in a digital wallet. The price of cryptocurrencies is much more volatile, unlike the traditional fiat that has a stable value. So there is a big risk that you can lose your money or can earn a lot on it.

How cryptocurrencies had its value?

Like any other forms of currencies, the value are affected by several factors. For example, fiat currencies such as USD, PHP, JPY and etc had its initial value mainly from their respective country's economy and their government's stability due to the fact that it was backed up by these centralized authorities. If we are to look for cryptocurrencies, the value associated to the coin are correspondent to how much we value it. Thus, the value are from its own users. If there are a good number of people that will use it, certainly, the value will be appreciated and will increase throughout.

Just like any other value of trade or exchange, cryptocurrencies made its exponential growth because of the demand. Initially, to make the coin maintain its worth, there is a limit specified in stipulation of how much coins will be circulated. Either it can be mined or was already pre-mined though it varies to the type of the cryptocurrency coin.

photo courtesy from fxstreet

The outlook:

Cryptocurrencies are a good investment to start with. Indeed, a revolution for mankind. In my perspective, cryptocurrencies gives us the freedom of infinite value of money. During this time of uncertainty with health measures as our priority in life, the utilization of cryptocurrencies as a medium of exchange is a better option.

If you are someone who's interested to 'go in digital' might as well try to leap into the future with this blockchain technology. Instead of paying cash let's go cashless using cryptocurrencies!

However, always remember that think, trade, and invest wisely. Try to know how the market works. Know where to put your money on hand and let your money work for you.

This is the cryptocurrency wiz by @francescawrites , I hope that you'll learn more about cryptocurrencies. Let's all hodl and hustle!

Thank you for reading!

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10 months ago
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Comments

Nakakatakot magtrade ng pera baka mawala na lang sa isang iglap hahahahha abangan ko po content niyo

$ 0.01
10 months ago

hi poooo thank you! medyo yun nga yung risk kaya dapat vigilant as a trader, will check your articles too! :>

$ 0.00
9 months ago

Abangers nako ng the cryptocurrency wiz mo lods grabe I feel so dumb hahahhaha wala ako kaalam alam dito. Abangan namin ni @carisdaneym2 next article mo kasi ayon para may alam naman kami na slight haha

$ 0.01
10 months ago

7 months later, nag-invest ka na ba? Sulat ka nga rin ng article. I want to learn mooooore.

$ 0.00
3 months ago

Haha. 7 months later, I learned just few things but I think I learned enough. Tried spot trading, lost a few sum, currently hodling a bit of bch. Haha.

What kind of article ba? Haha

$ 0.00
3 months ago

Galing! Pwede rin about spot trading because I have no idea what you just said. I was like... uhm. Ganon pa ako ka-beginner kaya I'm reading a lot. Super!

$ 0.00
3 months ago

Etong nagsulat ng article na to talaga yung expert e. Haha. But lemme gather few links of articles na pwede mo mabasa. :)

$ 0.00
3 months ago

And I learned a lot, grabe! Ganun ako ka-beginner. Buti may mga kagaya niya na ang concise magsulat at sobrang tiyaga.

$ 0.00
3 months ago

Yep yep. Haha. Actually, kambal talaga kami e. 🤣

$ 0.00
3 months ago

Idol ko na nga siya ehh, 10 articles na ata nabasa ko sa kanya. Haha.

$ 0.00
3 months ago

Aww. Bhie @francescawrites may fan ka po dito. Chour. Hahaha. Labas ka dyan sa hukay mo! Hahaha

$ 0.00
3 months ago

mas lods ko kayoooo, will teach you more hehe, thank you!!!

$ 0.00
10 months ago

Maam yes maam.

$ 0.00
9 months ago

Mukhang aabangan ko yung next article mo about crypto since beginner din ako hahaha paturo naman mag trade beke nemeen🤭🤭🤭 @immaryandmerry basahin mo to President para naman sabay tayong matuto sa crypto world haha. Nice article and very informative especially for the beginners like me since as of now I'm just hodling my BCH and still practicing to the demo trading but I think am not that good intrading kaya baka mag hold nalang ako hahaha. Depende sa mood🤭💚💖

$ 0.01
10 months ago

oi senpaiiii, gagawa ako article about trading hihi pero i'll teach you the tricks, may ups and downs talaga ang trading lalo na ang taas ng value ng cryptos ngayon so invest wisely and you're right na try on demo trading if kaya na then go but for the meantime, i prefer to hodl it too

uu tuturuan kita mag day trade HAHAHA if ever, ganyan din naman ako, depende sa mood lol ;)

$ 0.00
10 months ago

Hahaha nakadepende talaga sa mood baka pag egul tas badtrip pa eh double kill na hahahha

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10 months ago

ay nako totoo minsan nang nangyari sa akin yan HAHAHAHAH

$ 0.00
10 months ago