Intro to Crypto: Cryptocurrency

Have you heard about Bitcoin or cryptocurrency? I was skeptical the first time I ever heard about it. The second time a friend mentioned it I decided it was time to research and invest time and a little money. This is what I have learned so far:

What is cryptocurrency?

Cryptocurrency is digital or virtual currency designed to be a safe and affordable way to conduct transactions in the absence of traditional network systems. Some of us may not be ready to accept digital cash but the truth is our economy already has.

This futuristic cash was created utilizing cryptography (code or algorithms) this coded process securely stores all cryptocurrency on an encryptic strand of data. A technology called "Blockchain" acts like a ledger that safely stores these transactions. Cryptography stores every transaction that will ever be made by participants along with all balances. Transactions are confirmed by Miners who in term receive cryptocurrency for their work. Miners maintain specialized computer equipment that utilize a lot of power to problem solve and confirm transactions. Once confirmed this process can never be reversed. Confirmation is a vital function that validates transactions as part of the Blockchain. Digital transactions are decentralized and allows for peer to peer or peer to business transfers and transactions without the need for a bank.

Types of cryptocurrency

There have been other attempts to create digital currency but they failed and all lacked cryptography. The first successful non-tangible currency is called Bitcoin. It is often referred to as the parent coin or Shatoshi named after its elusive inventor (no one really knows who he is). All other digital coins are alternative coins referred to as "altcoins". For an initial purchase one does have to exchange US currency for Bitcoin. Banks have not been totally eliminated from the process. To buy altcoins you have to purchase and exchange your Bitcoin for the altcoin(s) of your choice. Please note there are a few senior coins like Litecoin and Ethereum that can also be used to purchase alt coins.

Example: US currency : = amount Bitcoin

Bitcoin: = amount Litecoin or other alt coin & Litecoin: =amount altcoin

:Some cryptocurrency are labeled as tokens instead of coins. Tokens represent a coin creator or company asset. Tokens are pre-sold before a company goes public to fund future coin development. This advance sale is a potential investment opportunity called an Initial Coin Offering "ICO". Even before an ICO coin creator's develop a road map and presents its project objective, technology and financial details. The details are available in the form of fact sheets called Whitepaper. it is best practice to read this before deciding to invest in any coin. There are thousands of different types of coins. For the top 100 visit: https://coinmarketcap.com

Many companies and online businesses accept Bitcoin for payment including hotel and airline booking sites, online retailers, Amazon and soon Starbucks. Like all securities this currency is also subject to market capitalization in which the value is measured by multiplying the supply in circulation by the current price.

Steps to purchasing/exchanging crypto:

1) You need an exchange site with an online e-wallet:

E-wallets= are software programs that interface with Blockchain to store, send and transfer key codes that represent and secure cryptocurrency.

2) Next you will need to register and purchase fractions of Bitcoin/parent coin(s) or whole coins to fill your e-wallet.

To make an initial purchase/exchange for Bitcoin or senior coins you can use a checking account, debit, or PayPal and transfer any amount. You can get started with as much as you can afford and note there are exchange fees. During my initial debit purchase I was charged $3 for the purchase of $100 worth of Bitcoin. Be sure to read exchange rates and rules for each site. Also, fees differ with payment methods as well as processing times. Debit card purchases are immediate. As an added security measure secure key codes are generated and required to complete all e-wallet exchanges.

Here are a few exchange sites:

-COINBASE

https://www.coinbase.com/join/5a542ab27b7fd404d9bf2662

(Coinbase is one of the easiest exchange sites to navigate & it has low exchange fees)

-GDAX

www.gdax.com

(Low fees/ owned by Coinbase)

-BINANCE

https://www.binance.com/?ref=22310672

(Reduced fees if using Binance coin)

-ROBINHOOD CRYPTO

https://crypto.robinhood.com/

(Coming soon, no exchange fees, sign up for the waiting list)

*There are many other exchange sites so be sure to conduct research before exchanging money.

Cryptocurrency is being adopted by more people and retailers everyday. I believe it is here to stay although it may be governed differently in the future. Be sure to research individual coins further before deciding to invest or see my article "How to Earn Free Cryptocurrency".

Thank you!