Cryptocurrency Explained

[vc_row][vc_column][vc_column_text]These days we are hearing about cryptocurrencies all the time from the news and media, particularly whenever there is a major fall or rally in the value of the major cryptocurrencies. However, most people are still unsure of what the word actually means, or how they could stand to benefit from getting involved with this technology. It is very important first to first understand the main concept and theory of cryptocurrency before we get into any kind of transactions or activities regarding it.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”orange”][vc_custom_heading text=”What is cryptocurrency?” use_theme_fonts=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Cryptocurrency was invented in 2008 by a mysterious programmer who calls himself Satoshi Nakamoto, as a way for people to pay for goods and services outside of the system of national currencies, and the limitations & scrutiny they come with. By design, cryptocurrency has no central authority, and is regulated on the basis of a peer-to-peer consensus network.

Cryptocurrency is basically an asset in digital form, designed to operate and acts as an exchange, by making use of cryptography for securing transactions. Any transactions, which take place within this framework are added to something called a “Transaction Block Chain”. This block chain is a list of all transactions done on the peer-to-peer network, which allows for verification in a decentralized and fully transparent way.

Yes, cryptocurrency is an investment asset, and it is also money. It is money which can not only be preserved, but can also be saved from third-party activities like political manipulation and fraud. No cryptocurrency can be counterfeited, no transaction can be reversed, and there is no need for third party involvements in transactions either.[/vc_column_text][vc_column_text]The Inner Workings of Cryptocurrency

After being briefly introduced to the concept of Cryptocurrency, you might be wondering that how this entire concept is going to work?

This short but informative video should explain all of the basics in an easy to understand way:

[ytp_video source=”kubGCSj5y3k”][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”orange”][vc_custom_heading text=”How do you stand to benefit from cryptocurrency?” use_theme_fonts=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]There are definite and tangible ways for you to benefit from investing in cryptocurrency, and what follows will be just a short list of the potential benefits.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_tta_accordion][vc_tta_section title=”1. No chance of fraud” tab_id=”1511981819036-dc67945f-53ee”][vc_column_text]The blockchain technology allows each user to verify their purchase against every other user’s list of transactions, so there is no way to commit fraud, nor any way to forge money. The list of transactions is stored on every computer in the network, so there is no chance of a catastrophic failure of security, since even if a number of nodes on the network are wiped out, there are many more copies of the blockchain available.[/vc_column_text][/vc_tta_section][vc_tta_section title=”2. Lower fees” tab_id=”1511981819087-be5a1e77-0901″][vc_column_text]The cryptocurrencies themselves do not charge any fees for transactions made with them, unlike your run of the mill banks, but most users will engage the services of a third party company to make their payments. These work in much the same way as PayPal works with regular currencies, and they charge a small fee for each transaction, certainly smaller than regular banks would. Also, mutual transactions have zero fees, trading between two parties without the use of an exchange or any other third party.[/vc_column_text][/vc_tta_section][vc_tta_section title=”3. Anonymity” tab_id=”1511981826637-4e8c1257-1f56″][vc_column_text]Cryptocurrencies do not require you to provide personal information, unlike a bank. The blockchain technology allows a wide network of users to make safe transactions, even without the need to trust one another. This system of transaction ensures that anonymous commerce is possible without the risk or fear of fraud, because it is not possible to manipulate the public ledger.[/vc_column_text][/vc_tta_section][vc_tta_section title=”4. Easy Access” tab_id=”1511981831388-32cb19be-93f9″][vc_column_text]A mobile phone or computer with an internet connection is really all it takes to make transactions using cryptocurrencies. That means that for the vast majority of people who don’t have access to traditional markets, a cryptocurrency wallet can offer a viable pathway into the world of financial markets.[/vc_column_text][/vc_tta_section][vc_tta_section title=”5. Recognition regardless of jurisdiction” tab_id=”1511981832200-46c7aa00-eb5b”][vc_column_text]Since, unlike the traditional national currencies, cryptocurrencies are not bound by any national laws, exchange rates, or any other fee that a national government may impose, they are much easier to work with when doing business on a global stage. Furthermore, there is no way any party other than yourself is able to decide what happens to the account, no way to freeze or charge the account without your knowledge and consent.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”orange”][vc_custom_heading text=”The Different Ways of Receiving Cryptocurrency” use_theme_fonts=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Following below are just three different ways in which you can receive cryptocurrency.

Specifically:

  1. Cryptocurrency exchanges: Making use of the available exchange services which facilitate buying and selling of cryptocurrency for your chosen paper currency. This is obviously the easiest way to receiving cryptocurrency.
  2. Sell your goods and sell your services in marketplaces for cryptocurrencies: If you want to be paid in your cryptocoin of choice, for whatever service you provide, you can easily do that without worry of fee’s or scrutiny.
  3. Mining for Cryptocoins: Sure, you can go mining for your cryptocurrency. However, this is not exactly an entry-level method to get your hands on cryptocoins. This method not only requires the use of expensive hardware, it also needs a very firm understanding of cryptocurrency in general.

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”orange”][vc_custom_heading text=”In Closing” use_theme_fonts=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Hopefully, you now understand the basic concept of cryptocurrency technology, and its use in today’s economy. We know it can be confusing, and that is alright if you are still unclear about this technology and movement. Don’t worry though, it is not a simple concept to just jump into! You need some time to process the info and learn more about each particular aspect of the technology itself.

Obviously, if you are truly interested in this technology, you have much more to study and learn. But for a beginner, we hope that we were able to help you understand the basic concepts of cryptocurrency.

To learn more in depth, please have a look at our more technical writings and specific breakdowns of cryptocurrency here on the site. Most of the best content is found on the blog, as it has more up-to-date and detailed information. The blog here is aimed at readers who want a more informative and deeper understanding of all things cryptocurrency! Also, it is ever growing and updated, especially when new emerging trends arise.[/vc_column_text][/vc_column][/vc_row]