Cryptocurrency for Beginners

Cryptocurrency for Beginners [Complete Guide]

Cryptocurrency is a digital currency that uses cryptography to secure transactions and control the creation of new units. It is decentralized, meaning it does not rely on a central bank or government to create or regulate it. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

Bitcoin was the first cryptocurrency, created in 2009 by an unknown person using the alias Satoshi Nakamoto. Bitcoin uses SHA-256, which is a set of cryptographic hash functions designed by the US National Security Agency (NSA).

Cryptocurrency for Beginners

Bitcoin may very well be the most recognizable cryptocurrency on the market, but it’s certainly not the only option. If you want to dive into the world of cryptocurrency, there are plenty of other options available to you. All of them boast different features and benefits, and each one is unique in its own way.

Whether you’re looking for a new investment opportunity or just trying to figure out how this whole cryptocurrency thing works, it’s worth considering all of your options before making a final decision.

What is Bitcoin?

Bitcoin is a digital currency that is not tied to any country or central bank. It was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

Bitcoin is a cryptocurrency, so it uses cryptography to control the creation and transfer of money. Transactions are recorded in a public ledger called blockchain, which can be accessed by anyone.

Bitcoin has been around since 2009, but it only became popular in 2017 when its price skyrocketed from $1000 to $20000 per bitcoin.

How to buy cryptocurrency?

There are many avenues to buy cryptocurrency, but the easiest way to get started is with a credit card. In this example, we will use Binance exchange.

If you’re ready to enter the cryptocurrency market, here’s how to buy some of the most popular coins with your credit card on Binance exchange right away.

You will first need to register on the Binance exchange before you can purchase and trade your desired cryptocurrency. This is a straightforward process, and we’ll guide you through it (since you’re here reading this).

Each step is clearly explained, so there’s no chance of getting lost.

Log in to your Binance account and click [Buy Now] on the homepage banner—You can choose to buy crypto with different fiat currencies.

Enter the fiat amount you want to spend, and the system will automatically display the amount of crypto you can get. Click [Continue].

Decide your preferred payment method here. To buy with credit/debit card, click [Visa/Mastercard] – [Continue].
Follow the instructions and enter your card information. Then click Continue

Next verify the payment details and fees, then confirm your order.

The last stage is a redirect to your bank’s OTP Transaction Page. Follow the on-screen instructions to verify the payment. Once it is successful, you will see the purchased crypto in your Binance Spot Wallet instantly.

How to Store Your Bitcoin Safely?

Most people have heard of Bitcoin, the digital currency that has been around for more than eight years. Most people know that Bitcoin continues to grow in popularity and value. What most people don’t know is how to store their bitcoin safely.

There are four ways to store bitcoins:

Online wallets

These are mainly websites that allow users to store bitcoin in their accounts on the website. They claim that they have strict security measures in place, but they do get hacked occasionally, with consequences for the users (owners) of the bitcoin stored there. Some examples of online wallets include Coinbase, Blockchain, Bittrex and Quadriga CX.

Mobile wallets

These are smartphone apps that allow you to store your coins on your mobile phone or other device that you can use as a wallet. This is very similar to an online wallet, but it creates a layer of protection since a hacker would need to access your phone before he could gain access to your coins.

Desktop wallets

With a desktop wallet, the private key is stored on on your computer’s hard drive.

Hardware wallet

A hardware wallet is a device that stores your private keys in a secure physical location. This makes it nearly impossible for hackers to steal your coins if they were to access your computer or mobile phone, since they would also need the physical device with the wallet installed.

The most popular hardware wallets are Trezor, Ledger Nano and KeepKey.

Pros:

More secure than mobile or web wallets because private keys are stored offline. Allows you to recover your bitcoin using a backup phrase from another compatible wallet if something happens to your device.

Cons:

It’s possible for hardware wallets to be compromised if the manufacturer has a bug or if someone else gets access to your wallet (for example, if you leave it unattended). You need to keep it safe, as it would be like keeping cash in a safe at home. You will have to spend money on buying it and then take care of it. If you lose or break it, you may lose access to all of your crypto’s.

Hot wallets vs cold wallets

A hot wallet is any wallet that is connected to the Internet. A cold wallet, on the other hand, is one that is not connected to the network and this means that it cannot be hacked into by anyone.

Hot wallets are best used for small amounts of bitcoin that you need to use on a regular basis or for frequent transactions, while cold wallets are best suited for long-term savings or investments. This isn’t to say that hot wallets are not safe, but since they are online there is always a risk of being hacked or attacked by malware. Cold storage options like paper and hardware wallets can provide better protection from theft, loss, and hackers if implemented properly.

Bottom line

Cryptocurrencies are more than just a gamble – they’re revolutionizing the way we pay and do business. Whether you’re an investor, creator, or just someone curious about how these innovative technologies work, it’s time to join the discussion.

To learn more about these cryptocurrencies for beginners, start by reading about the basics of cryptocurrency. Then study the history of these top coins closely. This will help you to understand their strengths and weaknesses and will also give you a sense of what’s in store for them.

Useful Resource:

Investopedia: Safest Ways to Store Bitcoin

Ogedi

Ogedi is the Co-founder of CryptoBasics. He writes on a number of topics related to Blockchain technology but focuses mostly on Cryptocurrency, NFTs, and Decentralized Finance.

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