Blockchains, decentralized networks, ledgers. Most people have already heard of these terms being used frequently, but like them, you probably have no idea what these things are.
Don’t fret! In this video, we’ll be providing a crash course on everything you need to know about Cryptocurrency from where it started, how it’s used, and of course, the benefits of investing in it.
The History of Cryptocurrency
Bitcoin, considered by many to be the first and original cryptocurrency out there, was founded by a programmer or a group of programmers under the pseudonym Satoshi Nakamoto. It was first outlined as a white paper published in early 2009 and has since grown into the now whopping $653 billion U.S dollar combined market value of all the world’s bitcoins.
However, Bitcoin isn’t the only cryptocurrency out there. From the initial concept in 2009, an estimate of around 4000 cryptocurrencies has surfaced. Bitcoin, Dogecoin, Ethereum, Tether, and Polkadot are one of the most notable among these thousands.
How Does it Work?
Cryptocurrencies are currently being utilized for both transactions like payments and investments. So how exactly do these digital currencies work? As opposed to money, which still exists in digital form, for the most part, cryptocurrency can work without a central authority figure. This means that they do not need to operate like banks that are reliant on their own computers to manage ledgers that contain notes of all their transactions. To add to this, cryptocurrencies are also uniquely different as most of them are entirely transparent with their ledgers and can operate 24/7.
Every computer that participates in the cryptocurrency system holds a copy of their blockchain, the ledger that lists all the current transactions happening within the cryptocurrency, which shows complete transparency. Because of this, too, it’s nearly impossible to hack cryptocurrencies or crash them deliberately because you would need to take over the thousands if not millions of computers that participate in the system.
Most cryptocurrencies require a “wallet” in order for people to purchase them. This “wallet” can come in two forms. The first of which, known as a Hot wallet, is through software like Electrum that enables you to store coins on your computer or through Mycelium, a mobile app available for Android and Apple Users. On the other hand, Cold wallets are physical pieces of hardware that look like USBs that store your coins. Perfect examples of these cold wallets are Trezor and Ledger Nano.
When weighing them both down, hot wallets are more convenient but more likely to get compromised as it’s easier to hack actively open devices like phones or computers than actual pieces of hardware. Since there isn’t a central authority figure, consider it lost forever if you lose your cryptocurrency.
Investing in Crypto
If you invested a hundred dollars in Bitcoin back in October of 2010, your 1000 bitcoins would have been worth more than $48 million. However, this does not mean that you would also get $48 million in 10 years if you invested a hundred dollars in bitcoin today. The cryptocurrency market is always shifting and is very volatile.
With that said, there are many profitable options out there when it comes to investing and making money out of cryptocurrency trading. Some people have even made trading cryptocurrency their day job.
Although there have been a lot of stories of people gaining extreme fortunes from their cryptocurrency investments, equally the same, if not more, have also lost extreme fortunes because they invested in the wrong time. Just like the stock market, cryptocurrency requires patience, focus, and commitment.
A great start to investing in crypto would be to go for the best ones to invest in, like Bitcoin, Cosmos, Dogecoin, Ethereum, Compound, and Polkadot. These are the largest, less risky, trusted, and most profitable cryptocurrencies as of the moment.
As always, any investment needs a good platform just as much as the investor’s patience, dedication, and willingness to learn. According to thecollegeinvestor.com, the five best currency exchanges and investing platforms are Coinbase, Gemini, Blockfi, Uphold, and eToro.
This is all the time that we have for today, and we hoped you enjoyed our video on cryptocurrency and found it to be informative. Check out the video below, and be sure to watch our other trending videos on YouTube!
Recent Comments