Cryptocurrency 101: The Ultimate Beginners Guide to Cryptocurrencies
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What is cryptocurrency 101? If youre reading this, youve probably already heard about people Investing in Cryptocurrency. But just what in the heck does that mean?! And howexactlycan you start investing in cryptocurrency?
So I am here to share with you Cryptocurrency 101: The Ultimate Beginners Guide to Cryptocurrency.
Learn, enjoy, take action and more importantly share everything!
Wealth is not about having a lot of money. It is about having a lot of options.
Cryptocurrency is deemed to be one such option. If you are a beginner, you may be anxious before investing, at times wondering is cryptocurrency safe? It is normal to be extra vigilant.
However, cryptocurrency is a highly secure option for investment. If you are looking for valuable information about investing in Cryptocurrency, you have come to the right place.
Not aware what cryptocurrencies are? Heres a roundup to simplify the concept.
So you want to learn more aboutcryptocurrency 101? First, you need to know what a cryptocurrency is.
A cryptocurrency is a currency that only exists on the internet. It is a digital currency.
It is a medium of exchange like normal currencies such as the US Dollar but designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography.
Cryptography is used to secure the transactions and to control the creation of new coins.
Catching up on a fast pace,Cryptocurrencyis said to be the money of the future. To be more precise, cryptocurrencyis a digital currency that uses cryptography for security.It is not owned by any government or statutory body. But, it is fully safe for trade transactions.
The first cryptocurrency to be created was Bitcoin back in 2009.It was created by a pseudonymous developer named Satoshi Nakamoto.It was a new way to transfer value directly to a recipient without fees.
Bitcoinis an emerging encrypted form of digital money or cryptocurrency, thats growing in popularity and value internationally. Bitcoin is attractive to users and investors because of its immediacy, lack of oversight and anonymity.
Bitcoin uses SHA-256, which is a set of cryptographic hash functions designed by the U.S National Security Agency. Bitcoin is a cryptocurrency that is based on the proof-of-work system.
In April 2011,Namecoin, the firstaltcoin, was created to form a decentralized DNS to make internet censorship more difficult. In October 2011,Litecoinwas released and became the first successful cryptocurrency to usescryptas its hash function rather than SHA-256. This gave the general public the ability to mine for litecoins without the purchase of specific hardware such as theASIC machinesused to mine Bitcoin.
Litecoin began receiving media attention in late 2013 reaching a market cap of $1 billion.Ripplecoin, created in 2011, was built on the same protocol as Bitcoin but services as a payment system think of it like a Paypal for cryptocurrencies that supports any fiat currency, cryptocurrency, commodity or even frequent flier miles.
Today there are hundreds of other cryptocurrencies, often referred to as Altcoins.
Now that youre familiar with the term Cryptocurrency, know thatBitcoin is the trendsetter of cryptocurrencies. The currencies joining Bitcoin are calledaltcoins.
If you wanted to get in on the action, you can do it with the
and invest $100 then Coinbase will deposit $10 in your account thats 10% right there!
Altcoins are said to be a modified or improved versions of Bitcoin. And, apart from Bitcoin, heres a list of cryptocurrencies that are upsurging the market.
The 6 Most Important Cryptocurrencies Other Than Bitcoin
Launched in the year 2011, it is often referred to as silver toBitcoins gold.
Launched in 2015, it can be used to decentralize, codify, secure and trade anything.
Launched in the year 2016, it claims to provide extra security or privacy to the transactions.
Also known as Darkcoin, it is a secretive version of Bitcoin.
Launched in 2012, its structure doesnt require mining.
Launched in April 2014, it is a private, secure and untraceable currency.
Thanks to My Millennial Guides most popular article onThe Best Bitcoin Exchanges. I can show you the roadmap it takes to buy Bitcoin safely. I want to show you the basics to investing in cryptocurrency and the process starts with you having to first purchase Bitcoin.cryptocurrency 101
The first and the foremost step is to create an account with an exchange. It is important because the exchange acts as a medium where buyers and sellers trade coins as per the respective currency selected by the buyer.
Also, the coins can then be transferred to a different exchange. Each exchange has its own guidelines and rules. Be sure you are through with them before trading.Some of the most common exchanges are:
Coinbasehas emerged as one of the high profile names in the Bitcoin world placing itself on the top as a one-stop solution for inbase is a San Francisco based digital asset exchange that lets you turn your fiat currency into crypto-currency. Its the main entry point into the cryptocurrency space for most people. Its currently is the quickest and easiest way to buy Bitcoins in the USA.
Create your Coinbase account and get $10 in free Bitcoin atCoinbase.
Fees: Coinbase charges 3.99% fees for credit/debit card purchases but you can get your coins instantly. 1.49% if you buy from your bank account.
Pro: Instant Buy option available with credit card or debit card
Con: Purchases made with bank transfer can take up to 5 days to complete
If you wanted to create a Coinbase account you cancreate a Coinbase accountby clicking this link.
Coinmamais one of the most popular digital currencies exchanges available. It allows customers in almost every country to buy bitcoin with a credit or debit card as long as its a Visa or MasterCard.
Fees: Coinmama charges a 6.6% fee on each purchase. 5% additional fee for credit/debit card purchases, but you can get your coins instantly.
Pro: Reliable and trusted broker and works in almost all countries.
Con: Some of the highest fees among credit/debit card bitcoin brokers.
If you wanted to create a Coinmama account you cancreate a Coinmama accountby clicking this link.
GDAX(Coinbases exchange), is one of the largest Bitcoin exchanges in the United States. Users can fund their accounts via bank transfer, SEPA, or bank wire. GDAX offers good prices and low fees, but their confusing user interface may initially prove difficult to navigate.
If you wanted to create a GDAX account you cancreate a GDAX accountby clicking this link.
CEX.iolets youbuy bitcoin with a credit card, ACH bank transfer, SEPA transfer, cash, or AstroPay. Purchases made with a credit card give you access to your bitcoin immediately. CEX.io works in the United States, Europe, and certain countries in South America.
Pro: CEX.io is one of the oldest Bitcoin exchanges around so it is trusted.
Con: Verification process more intensive than most exchanges and requires a photo ID.
If you wanted to create a CEX.io account you cancreate a CEX.io accountby clicking this link.
BitQuickallows you to conveniently buy bitcoin. BitQuick is one of the fastest ways to buy bitcoins in the United States using cash deposit. Users can browse a wide range of offers at various prices. Once the desired offer is found, buyers visit a bank to make a cash deposit into the sellers account. Buyers then usually receive their bitcoins within an hour.
If you wanted to create a BitQuick account you cancreate a BitQuick accountby clicking this link.
LocalBitcoinsis an escrow service which also helps to match bitcoin buyers and sellers. The most common method of payment for the purchase is cash deposit. However, users may advertise trades for whichever payment method they prefer.
Buying bitcoins via an in-person meeting, secured and facilitated by LocalBitcoins, may be one of the fastest and most private ways to buy bitcoins in any country.
Fees: Transactions to wallets of other LocalBitcoins users are free.
Pro: One of the fastest and most private ways to buy bitcoins in the United States.
Con: Can be more difficult to purchase larger amounts of bitcoins.
If you wanted to create a LocalBitcoins account you cancreate a LocalBitcoins accountby clicking this link.
Before anything else,youll need awallet. Yes! Even digital money requires a wallet. You store your cryptocurrencies in awallet. Also, you can purchase cryptocurrency, buy into an initial coin offering (ICO),or execute smart-contracts using the wallet.
Every wallet has a public address and a private address.The public address is the address where you receive funds from people. The private address is the password to access and send funds. Never share your password. Otherwise, you might lose all the money in your wallet.
How to secure your Bitcoin and Altcoin Investments
It is the easiest way of storing money. And also, the least secure. However, it is finefor purchasing things and funding your trading accounts.
The least convenient but hacker proof wallet of all times. It contains all data necessary to generate any number of private keys.
This wallet works when you download apps. Like Cryptonator,Mycelium, Venmo andso forth.
It is similar to the mobile wallet, just used on desktops instead.
What Keeps the Cryptocurrencies Safe and Updated?
There are two terms that justify the security of cryptocurrencies:Blockchain & Escrow.
Blockchain, regarding cryptocurrency, deals with the way in which data is structured. Also, it records all transactions to keep track of who had paid what and how much. Moreover, it makes payments faster and more secure.cryptocurrency 101
This process altogetherthrows light onCryptocurrency Mining,which is an interesting concept again. Crypto miners verify the transactions recorded in the blockchain and write them into a general public ledger. Also, the crypto minersare paid a small reward for accounting & validating services by receiving little coins every couple of days.
Escrowis a financial agreement between two parties, where a third party arbitrates in & controls the transaction with secure hands. Initially, the seller and buyer need to sign an agreement. The transactions are to be held only after checking whether the requirements are met or not.cryptocurrency 101
The market of cryptocurrencies is similar to the stock market, fast and unpredictable. Nearly every day new cryptocurrencies appear, old ones die, early adopters get wealthy and investors lose money. Every cryptocurrency comes with a promise, mostly a big story to turn the world around.cryptocurrency 101
As per the research carried out byTechnavioanalysts, in 2014, the worldwide cryptocurrency market grew remarkably by 622.7%.
Websites like m,Expedia,Newegg,Expedia and similar accepted Bitcoin, along with the other traditional payment methods. Note that otheraltcoinslike Litecoin or Ether are not accepted. However, the fact that Bitcoin is accepted is a step forward towards the adoption of other cryptocurrencies.cryptocurrency 101
So, now that youre gone through the entire cryptocurrency 101 ultimate guide with the beginners knowledge of how investing in cryptocurrencies works, you can make your first investment easily.
Apart from investing and increasing the value of your coins, you can also use these coins to pay bills forparties, groceries, and whatnot.
Bitcoin, in words ofNassim TalebBitcoin is the beginning of something great. A currency without a government, something necessary.
Author Bio:This cryptocurrency 101 guide was written by the My Millennial Guide team in partnership with9ightoutswith the idea thatEVERYONEshould be learning about cryptocurrencies its always important to know all of your investing options.More about9ightouts:9ightouts is a blog intended to present more information about cryptocurrency, a raging trend of the decade. You can follow them onFacebookTwitter, andInstagram!
Related:The Best Bitcoin ExchangesandA Beginners Guide to Investing in Cryptocurrency
Brian founded My Millennial Guide after 6 years of Financial, Accounting, Mortgage, and Credit Lending experience in Virginia and Washington D.C. Brian has a Finance degree from Virginia Commonwealth University. Hes spent the last 5+ years writing about personal finance and been quoted in several online publications, including Yahoo! Finance, NASDAQ, MSN Money, AOL, Discover Bank, GOBankingRates, Student Loan Hero, Fit Small Business, Cheapism, SmartAsset, Bankrate, RISE Credit, AllBusiness, Cheddar, Commonbond, Niche, Rewire, Credit Donkey, and more. You can see hisfavorite ways to pay off debt here.
I would invest in up and coming alt coins, or wait for a pullback in BTC!
Well written and useful. Bookmarked for reference. Thanks, Brian.
A good number of experts are saying Bitcoin will reach over 10k by the end of December. I guess well see!
Im trying to find some research on new alt coins that have potential to be very successful in the future. Do you have any suggestions or how to go about this?
At what price should I buy Bitcoin at for a good long term investment?
Great write up man really helped me figure out what the heck crypto is lol.
Thanks for sharing, Brian. really insightful. Would you recommend Litecoin? I am seeing that on my coinbase app and it is around $100 right now. A small investment of course.
I️ have $4,000 to buy cryptos Im planning on buying $2000 of BTC, $1000 on ETH, and $1,000 of LTC. Im holding LONG TERM.
Whats the best crypto exchange for US residents?
Hey Alex, I would first useCoinbasefor getting USD into the market. Then I heard good things about Binance and Bittrex. I would stay away from Kraken.
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