Did you know that Bitcoin made history as the first cryptocurrency when it was invented all the way back in 2008?
Since then, the world of cryptocurrency has grown beyond most people’s expectations. Now it’s seen as a force for good when it comes to buying, selling, and trading independently. However, there are still plenty of people who aren’t familiar with how everything works.
Are you wondering what you need to know before buying and trading crypto? Keep reading for a brief intro to blockchain and cryptocurrency.
What Is Cryptocurrency?
Cryptocurrency is a type of digital currency separate from a government institution. Instead, all the transactions are verified and logged into a decentralized system. Whether you’re dealing with Bitcoin cryptocurrency or another type of crypto, this still applies.
So far, there are more than 19,000 cryptocurrencies out there, although most of them aren’t worth much.
If you want to start buying or selling crypto, then you’ll need a wallet. Instead of a folding piece of leather, the wallet is digital like the currency involved. A cryptocurrency wallet contains your passwords, otherwise known as private keys, which are essential to any transaction.
The wallet can take the form of a phone app, a desktop app, or it could even exist on the internet alone.
What Is Blockchain Technology?
As mentioned earlier, cryptocurrency transactions are made possible through a decentralized ledger. This ledger is also known as a blockchain.
Once you receive verification of a transaction, it’s recorded on the ledger. This means it can never be changed afterward. You can rest easy knowing that the security is superior to other methods.
You’ll be glad to know that blockchain’s benefits don’t stop there. Since the tech is so sophisticated, a middle party isn’t needed for transactions. By avoiding the headache of banks, for instance, your transactions will process more quickly and you won’t have to pay extra for every single transaction.
Since blockchain technology is so useful and state-of-the-art, even many banks use it for their own transactions now. This is also true of other industries, such as information technology, finance experts, and more. Blockchain technology has even given birth to smart contracts and a phenomenon known as NFTs.
Another benefit of the blockchain is its transparency. Instead of the records staying secretive, you can see all your transaction and other relevant information with ease.
After This Intro to Blockchain and Cryptocurrency, You’re Ready
Now that you’ve learned the basics with this intro to blockchain and cryptocurrency, you’re ready to start joining the world of independent exchanges and more. As you get more and more used to how things work, you can start diversifying your financial portfolio and making your money work for you instead of the other way around.
With our free crypto Faucet tools and Altcoin Exchange for trading, we make things as easy as possible. Whether you prefer the most popular crypto or opt for something else, we’re happy to accommodate you.
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