Cryptocurrency #101 - What is it and how to make money with it

Cryptocurrencys what a wonderful world.

This 3 coins you see are the pillar of what we know today as Cryptocurrency

It all started in 2009 when a person (or a group we still dont know) called Satoshi Nakamoto had the vision to create a currency that NO ONE could manipulate and had 0 intermediary's.

Imagine transferring 100$ USD to your cousin living in China in 20 minutes from your couch, he then could exchange those 100$ USD (now converted into BTC) into CNY.

A quick 20 minute transaction from the opposite side of the world, with no intermediary and completely anonymous, that was the Bitcoin vision

Fast forward to 2018, that vision is still in some ways intact, but lets be honest, people are using Bitcoin to make money.

The whole decentralized/fast/anonymous thing its WHY bitcoin has a value.

2 coins have surged after Bitcoin; Ethereum and Litecoin both try to mimic Bitcoin vision and improve it.

They have succeeded.

In order to send money from 1 side of the world to the other you need something called:

What is the block chain?

"The practical consequence […is…] for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate."

Each coin has their own block chain, they have improved and developed the technology in order to make the transaction in them safer,secure and faster.

You want to send 1000$ USD to someone around the globe anonymously and fast? buy a bitcoin and send it to your friend to his bitcoin wallet.

How to make money with Cryptocurrency?

You need to understand that sending money around the globe anonymously has a price, you need to exchange your money into a Bitcoin or a really small fraction of a bitcoin.

One Bitcoin current value is 16.500$ USD

The minium you can buy of bitcoin is 1$ USD which would represent 0.0000001 BTC

Once you have your money converted into BTC, you can then send it to your cousin in china, you will have to pay a small fee to the block chain.

Now, back to the money

You have several options:

Trade them
Hold them
Mine them

Lest start with option number 1 TRADING

First you have to exchange your money for a Bitcoin, for example you can use https://www.coinbase.com

After you have your Bitcoin, you can then go ahead and look for an exchange of Altcoins (an altcoin is a variation of Bitcoin) for example https://www.binance.com/

On binance, you can exchange your Bitcoin for less valued coins in hope of them growing stronger (remember a COIN is like a stock of a company, you are buying a share of their company)

Option number 2 HOLDING

Same principle as option number 1, you buy Bitcoin or any Altcoin you like and you HOLD it in hope that it will go up in value

Option number 3 MINING

This maybe you are aware of, but you could mine a bitcoin and obtain a fraction of it for free (if you dont pay electricity or internet)

Mining is the process of using your computer power to solve really complicated calculations on the coin block chain in order to guarantee that the user transactions on the block chain are completed, for doing so, the block chain rewards you with a fraction of the coin

You then can go ahead and sell the coin you obtained for "free" and exchange it for USD or EUR.

monero_ethereum_litecoin_logos_buy_india_1512474443747.jpg

Remember, each coin has a value, bitcoin was valued in 2009 at 30 cents a bitcoin, you could buy 200$ worth of BTC for 30 cents back in 2009 and send 6,000 BTC to a friend for him to exchange it back to 200$

Sending 6,000 BTC now would cost you 99.000.000$ USD

If you want to make money research,investigate and study the coins that are on the market and buy what u feel has a strong future in today world, hold on to it and see how it grows in value.

Its not too late to get into Bitcoin, this is still a new concept and people are starting to adopt it, hop in before mass adoption happens, you still have time.