Cryptocurrency has hit newspaper headlines over the past year or so. But so many of us don’t have a clue what it’s actually all about! Don’t worry if you’re feeling left out of the loop. It’s pretty easy to get to grips with the concepts, jargon, and terms being thrown about in day to day conversation, newspapers, and journals as long as you have just a little background knowledge that we can provide you with here. Here’s everything you need to know about cryptocurrency!

What Is Cryptocurrency?

So, let’s start with the big question: what actually is cryptocurrency? Well, to put things simply, a cryptocurrency is a form of currency that is digital or virtual. You can’t have solid or tangible cryptocurrency in the same way that you would be able to have real cash. However, it works on very much the same concept as the money that we use in our day to day lives. It is used as a means of exchange: you give someone something, and they repay you in the currency. As cryptocurrency is entirely virtual, however, it uses cryptography in order to secure its transactions, control the creation of additional units (so you can’t just generate more yourself), and to verify the transfer of assets.

Exchange

So, you may be wondering how to get your hands on some cryptocurrency. The answer is that you have to exchange standard currency for it. There are various sites that will help you to do this, working as some kind of cryptocurrency exchange agency. Be sure to do your research before exchanging any money for any form of cryptocurrency, as not only are there various types of cryptocurrency out there, but there are various exchange sites, each with strengths and weaknesses. You want to look for the best exchange rates and fees, and you may also be influenced by different features, such as whether the exchange site you’re using accepts credit cards or not. You should also keep an eye on weekly price analysis through bitcoin technical analysis.

Bitcoin

So, let’s take a quick look at what is perhaps the most well-known of the cryptocurrencies, as it was essentially the first to exist and establish itself: Bitcoin. Using bitcoin enables payments to be sent between users without having to pass through a central authority, such as a bank or an official payment gateway. It is both created and held entirely electronically. There are various features of bitcoin that cause it to massively differ from standard currency. These include decentralisation, its limited supply, pseudonymity, immutability, and divisibility. Take a look here for a more in-depth look at each of these characteristics.

While cryptocurrency may well seem to exist in an entire realm of its own, it can be something that you successfully engage with as long as you just take a little time to look into the basics! So, take your time, be brave enough to take a step out and experiment, and see whether it’s for you.


Greg Kononenko
Greg Kononenko

My name is Greg Kononenko and I am a full-time online blogger and owner of Dad's Hustle. I'm a dad, and my passion is to help other mums and dads to start their own "hustle" and improve the financial future of their families.

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