Entry into cryptocurrencies. Where to start for a newbie?
Cryptocurrency is a brilliant invention of mankind, which was born relatively recently. It is cryptocurrency that is gradually becoming one of the most popular types of payment in the world, and trading has long been the main way to earn money. We are almost sure that you know what a cryptocurrency is and how it works. At least you have heard what it is. Let's take a little deeper into what a cryptocurrency is and find out what a beginner in the world of cryptocurrencies should know. Let's go!
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What is a cryptocurrency?
The main cryptocurrency of the world is bitcoin, a fairly young financial instrument. It first appeared in 2008. Cryptocurrency became more popular closer to 2012. At that time, the total value of all bitcoins was $140 million.
Cryptocurrency gained its really wide popularity only in 2018. That's when it skyrocketed. At the moment, the total value of bitcoins is 750 billion dollars. Not bad, isn't it?
How does cryptocurrency appear?
Bitcoin is made up of blocks. Each block is an equation, for its solution you get a reward. But only a machine can solve this equation: a processor or a video card. To do this, people buy equipment for cryptocurrency mining. Such people are called miners, you may have heard about it. It is getting harder and harder to mine bitcoin, if nothing changes, then with current capacities, 100% of bitcoins will be mined only by 2114. By the way, to date, 90.6% has already been mined.
Where to store and buy cryptocurrency?
You are probably thinking about breeches now, because this is the most popular solution. Cryptocurrency is bought and stored on exchanges. However, this approach is dangerous. There are two types of exchanges – CEX – Centralized Exchange and DEX – Decentralized Exchange. In order to trade and store cryptocurrencies on the CEX exchange, you need to go through the KYC process. During this procedure, you give access to your important data, namely your passport, phone number and mail. Such an exchange, in case of any malfunctions and its doubts or desires, can easily block your account along with the crypto.
How is trading through the stock exchange?
In simple terms, you can imagine that the wallet is your storage. An exchange is an employee who, under your supervision, enters the vault, deposits a certain amount of some coins, and takes others in exchange. And if the exchange tries to take more, then the security system will not allow such an operation.
We hope that we were as useful as possible to beginners and all those interested. Understand, learn, practice and earn more! Cryptocurrency is the future! This is a great opportunity to start now.