Cryptocurrency Guide

Cryptocurrency is a digital asset that people use as a currency. Cryptocurrency enables people to trade securely and isn’t controlled by national governments or central banks.

The lack of central control has made the creation of new currencies relatively easier and there are now thousands of different types of crypto coins (cryptocurrency). However it also means that cryptocurrency is incredibly volatile and it can fall just as quickly as it rises.

Transactions between 2 parties are carried out using their respective crypto wallets . A crypto wallet stores a user’s public and private cryptographic keys, allowing them to both send and receive coins. The private key is used to send cryptocurrency whilst the public key is used to receive cryptocurrency. So, if the user is sending someone cryptocurrency they will use their private key to create a signature, this signature will then get broadcast out. People available on the network will then validate the transaction so then it’s added to the blockchain.

What is Blockchain? Well, Blockchain is an unchanging ledger that tracks assets and records cryptocurrency transactions. Anything that is of any value can be tracked on blockchain as it can be used to track both tangible and intangible assets.

• Cryptocurrency offers a privacy and security as when its added to the blockchain it’s a lot harder for people externally to manipulate or take any assets that have been put there. Namely it provides protection against hackers.
• Transactions can be made relatively anonymously if people wish to keep their financial information from being accessible.
• As mentioned earlier cryptocurrencies are independent of central bank and government control. Which means that no authority can manipulate the value of the currency, this reduces the risk of problems such as currency devaluation.

Picking a cryptocurrency can be quite difficult especially depending on why you want it. For example, if you wanted to use crypto to make purchases then you are best off getting hold of either bitcoin or Ethereum as they are the most commonly used for trading. Whereas if you are looking to steadily generate more money then you need to do some market research and check out other peoples portfolios. You’d do this via checking out financial service websites to see what other people are putting their money in to, it also might be worth getting advice from other investors.

Yet its important to remember that cryptocurrency is still very new and that putting money into cryptocurrency still isn’t a guaranteed method of making money, there is every chance that the crypto you invest in could fall or even stop so its every important to do your own market research to give you the best chance. Don’t invest money you can’t afford to use.