Helping Newbies About Cryptocurrencies
What is Cryptocurrency?
Is Cryptocurrency a Real Money?
Risk of Cryptocurrency - Trading/Investing
What is Blockchain?
How to Buy Cryptocurrency?
What is Cryptocurrency?
-According to my understanding cryptocurrency is a digital currency work as a medium of exchange. It is also a currency associated with the internet that uses cryptography.
Is Cryptocurrency a Real Money?
https://cointelegraph.com/news/is-cryptocurrency-real-money-brief-discussion-on-major-issues-surrounding-debate
What is money?
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.
The invention of money turbo-boosted the advance of human civilization. It made the barter system obsolete and spawned a booming, cross-border trade system. This profound affect on the development of society as a whole is normally lost on all but a few individuals.
Let's face it. Most people take money for granted; ignorant of its origin, purpose and defining characteristics. In a fog of ignorant bliss, they blindly go about their daily lives only spending their time-honored, familiar money; not knowing that there are many types of digital currency being used now as a form of global money - and that's called cryptocurrency.
Risk of Cryptocurrency Trading/Investing
https://cryptohydra.com/trading/the-risks-in-trading-cryptocurrencies/
- the exchange you keep your coins on, can just disappear and you will never see your coins again. There is no investor protection in cryptocurrency trading because it is not a regulated market https://themerkle.com/top-4-bitcoin-exchanges-which-disappeared-under-suspicious-circumstances/
- the exchange you keep your coins on, can be seized by the FBI and they can decide whether to return the coins to their rightful owners or not
- the exchange you keep your coins on, can disable your account, because you live in the wrong state and you might never see your coins again
- the exchange you keep your coins on, can get hacked and your and everyone else’s coins can get stolen
- the exchange you keep your coins on, if they are Proof-of-Stake, can decide to forcefully hold your coins in their own wallet to stake them, and get the staking reward. PoS coins’ wallets have been in “maintenance” for months on cryptoexchange Yobit. Users have been complaining and sending emails but all Yobit reply with, is that there are problems with the wallets and work is being done to fix them, while in fact it is known that those particular cryptos’ wallets are fine, and the situation has been like that for months
your government can make it illegal for you to trade cryptocurrencies - your bank can decide to freeze your account or reject your incoming transaction if the source of the money is trading cryprocurrencies
- you can lose your private key – if you had it backed up on paper – you can lose it, it can be flooded or burn; if you had it backed up on a cd – you can break, scratch, or lose the cd; if you had it backed up on a USB stick – USB sticks go bad remarkably easy
- your private key can get hacked or stolen – hackers with access to your computer via spyware, remote viewer, WiFi network, the internet, can access your computer and copy your private key (if you keep it in a file) or your wallet.dat file. Whoever owns the private key, owns the tokens.
- your exchange account can get hacked or broken into – same as above, they can find out your email/password combination, get in your account and transfer the funds elsewhere
- your email/password combination for the exchange can be obtained in plain text, if you register at a malicious website that serves cryptocurrency traders (or an ICO, an airdrop of cryptos, a new exchange etc) – and instead of them encrypting your password on its way into the database, they can preserve it in plain text format if they want to, then use the same email/password combination to try to log in on other exchanges, especially ones that do not support two-factor authentication
- your email/password, account, wallet or private key can get easily stolen if you use your Android device to trade cryptocurrencies because Android devices are the least secure, and can get their traffic intercepted and apps decompiled with almost no effort
- due to the nature of cryptocurrencies, you can lose all or most of your money in the big price fluctuations that can vary with hundreds of percents in a single day
- the cryptocurrency you’ve invested in can be abandoned by its developers after a pump-and-dump scheme, or after the ICO
- the cryptocurrency you’ve invested in, can just quietly go to 0.00000001 satoshi and never recover if there is no interest in it and no development
- the cryptocurrency you’ve invested in, can get delisted from all exchanges it is being traded on, and/or just disappear
- the cryptocurrency you’ve invested in, can suffer source code bugs and complications that can mess up your balance/transactions/wallet and your coins can be lost forever
What is blockchain?
https://www.investopedia.com/terms/b/blockchain.asp
A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
How to Buy Cryptocurrencies?
https://www.bitdegree.org/tutorials/how-to-buy-cryptocurrency/#How_to_Buy_Cryptocurrency
Location:
- To find out how and where you can buy cryptocurrency, it is important for you check your country’s regulations.
Payment Method:
- The most common and accepted payment methods to buy cryptocurrency include: credit card, bank transfer or even cash. Different websites accept different payment methods, so you’ll need to choose a website that accepts the payment method you want to use.
Type of Cryptocurrency:
- Not all cryptocurrencies are available for purchase on every website. You will have to find a website that sells the cryptocurrency that you want to buy.
Cost of Fees:
- Each website has different fees. Some are cheap, some are not so cheap. Make sure you know how much the fees cost before setting up an account on any website. You don’t want to waste your time verifying yourself and then find out the fees are too high!
How much you can afford:
- As with any investment, you should never invest more than you can afford. I recommend speaking to a financial adviser first.
This are the things that will help newbies who wants to learn cryptocurrency. Hope that you learn from it.
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