A Beginner's Guide to Cryptocurrency. part two

 A Beginner's Guide to Cryptocurrency.

Cryptocurrency, aka "crypto," refers to any digital or virtual currency that uses cryptography to secure transactions, curbing all chances of double spending or forgery (due to the technical specs). Unlike traditional money printed and controlled by their respective governments, cryptocurrencies work on a decentralized network on the blockchain technology created through digital bookkeeping across multiple computers.

What Is Cryptocurrency?

Launched in 2009 by either one or a group of people who called themselves Satoshi Nakamoto, Bitcoin is the oldest cryptocurrency in existence today. Today, we have thousands of cryptocurrencies out there, like Ethereum, Binance Coin, Dogecoin, etc. Cryptos nowadays are being used to accomplish many things: making online payments, giving options as investments, or powering decentralized applications or DApps.

Reasons to Use Cryptocurrency.

First, decentralization. Cryptos work entirely without any central authority, giving utmost control over users' finances.

Second, availability. Transactions are borderless, so everyone with access to the internet can make any transaction.

Third, cryptocurrencies have shown growth potential coupled with high returns but come with huge risks!

Getting Started with Crypto.

Learn the Basics: Understand how Blockchain works, what more cryptocurrencies exist and what their differences are, plus know what risks they come with.

Choose an Exchange: Platforms like Coinbase, Binance, or Kraken let you buy, sell, and store cryptocurrencies.

Get a Wallet: A crypto wallet is a digital wallet that keeps all of your crypto in one safe place. Hot wallets are connected to the web; hence, they are considered more vulnerable than cold wallets, which are offline.

Start Small: Start by investing a small amount and diversify into different crypto portfolios.

Be Informed: The crypto market is very volatile. Therefore, ensure you check the news and constantly get updated in making an informed decision.

Some useful tips:

Invest only what you can afford to lose.

Beware of scams such as phishing attempts and fake investment schemes.

Concentrate on the long-term rather than making short-term gains.

Cryptocurrency is a new frontier in finance and has brought in the possibilities of innovation and investment. Proceed with caution and adequately educate yourself before diving in.