Cryptocurrency is digital money that doesn’t require a bank or financial institution to verify transactions and can be used for purchases or as an investment. Transactions are then verified and recorded on a blockchain, an unchangeable ledger that tracks and records assets and trades.
If you’re interested in learning more about cryptocurrency, this guide explains how it works and what you need to know before buying a digital currency.
What is cryptocurrency?
Cryptocurrency, or crypto, is a digital payment platform that eliminates the need to carry physical money. It exists only in digital form, and although people mainly use it for online transactions, you can make some physical purchases. Unlike traditional money printed only by the government, several companies sell cryptocurrency.
Cryptocurrencies are fungible, meaning the value remains the same when bought, sold, or traded. Cryptocurrency isn’t the same as non-fungible tokens (NFTs) with variable values. For example, one dollar in crypto will always be one dollar, whereas the value of one NFT dollar depends on the digital asset it’s attached to.
Although government regulations are absent from the cryptocurrency market, they are taxable assets. You’ll need to file any profit or loss with the Internal Revenue Service.
How are cryptocurrencies created?
Mining is the term used to describe the process of creating cryptocurrency. Transactions made with cryptocurrency need to be validated, and mining performs the validation and creates new cryptocurrency. Mining uses specialized hardware and software to add transactions to the blockchain.
Not all cryptocurrency comes from mining. For example, crypto that you can’t spend isn't mined. Instead, developers create the new currency through a hard fork. A hard fork creates a new chain in the blockchain. One fork follows the new path, and the other follows the old. Crypto you can’t mine is typically used for investments rather than purchases.
Cryptocurrency vs. traditional currency
The government produces traditional currency in paper bills and coins you can carry with you or put in a bank. You can use it for purchases and other transactions that require cash. The government backs traditional currency, while cryptocurrency has no government, bank, or financial institution controls.
While you can hold traditional currency in a bank or financial institution, you store cryptocurrencies in a digital wallet.
Various ways of earning in crypto
1. Buying a coin or token and just hold
2. Trading ( Various types of trading, that's not the purpose for this writeup but if interested, message me to learn)
3. Staking , this is like saving yourself to get profits daily hyst like a fixed deposit for crypto currency.
PERFORM THE TASK BELOW
Please ensure you open your account below. ( The two of them below, by clicking on the links below. If you are in a country where there's restrictions like NIGERIA 🇳🇬, download TURBO VPN and connect before opening your account below.
CLICK HERE TO OPEN A RELIABLE CRYPTOCURRENCY WALLET
CLICK HERE TO OPEN ANOTHER ACCOUNT AS BACKUP PLAN
After opening these two accounts, send me a whatsapp message and I'll teach and guide you further on the type of coins to buy and how to grow your account daily without leaving the comfort of your home
I'll also teach you how to avoid risky cryptocurrency platforms and coins.
