Learn all the in’s and out’s about cryptocurrency and blockchain technology.
Cryptocurrencies and blockchain technology have been on a fast rise lately and surely you want a piece of it. But you’re not quite ready to get a foot through the door because you don’t know much about the technology or the currency or anything else that has to do with it. So we’ve taken the time to do our research and write up an easy to follow guide for beginners to get a better understanding of this phenomenon. Let’s get started!
Table of Context
What is Cryptocurrency
Why you should know what it is
Where did it originate and why
What you need to know
What is Blockchain technology
Risks
Storage of currencies
Currency Tracking Apps
What is Cryptocurrency?
First things first, everyone should have an understanding of what cryptocurrency is because it’s on the way of becoming one of the top global currencies for all domestic and international transactions. So it’s best to get ahead of the game and understand this crazy phenomenon before getting into the technology and trading of tokens. Did you know that you can already complete simple transactions as purchasing a hotel? Keep reading and you’ll soon become an expert in the industry.
The mystery man of blockchain technology and bitcoin is mister Satoshi Nakamoto. On January 9, 2009 Mr. Nakamoto realised his invention of bitcoin technology based on a peer-to-peer type of platform. The idea of the system was to prevent double spending without always needing a central authority always having a say. Nakamoto didn’t intend to create a currency but instead a platform that helps keep transactions secure on a decentralized digital cash system.
Cryptocurrency is a digital currency that takes place in the digital world on a software platform known as blockchain. It’s important to keep in mind that there are numerous software platforms and currencies that are available to the public, but have different values for different people all over the world. Theses cryptocurrencies are meant to replace the current currencies that are used in everyday scenarios. For example you can use bitcoin to buy a hotel instead of US dollars.
What is Blockchain Technology?
In order for cryptocurrencies to work there must be this platform, that we’ve mentioned, blockchain. The platform works by not having one set location but rather endless amounts all over the world, and for a much lower cost. The reason for this is that it makes it impossible to get hacked. Let’s break it down, when you own something on a software or platform usually it’s located on a single computer or database. Anyone can come at anytime and get a bit of information from your account and in seconds have full access to your money and all your information. Everything you’ve been saving up and worked so hard for is gone! The cool thing about the blockchain software is that because it’s not set in just one location hacking is not a possibility. Even with a piece of information an account won’t work because there’s millions of other pieces that are scattered that make it impossible. In addition, if one computer or system goes down the entire database will continue running rather than failing and being lost.
The information on these databases have very heavy encryption so when time comes for either a transaction or a possible hacking to occur the entire database must approve so the transaction can continue. Great thing about this is that if hacker comes and it’s found that this transaction is not legit then the database will disapprove and nothing will be hacked or lost, and there’s no worry!
Risks of Cryptocurrency and Blockchain
It shouldn’t be surprising that with any investment there are risks to be accounted for. Whether that be investing in stocks, creating a startup, or choosing which cryptocurrency to invest in. The important thing is to be aware of the risks and learn how to take precautions. When it comes time to invest in a token do your research. Think about if you want to invest in a newer token with more unknowns that can be risky or if you prefer to go with a more known token that has less unknowns but will be more pricey.
Now when it comes to the risks of blockchain be aware that this also can have an impact one which cryptocurrency you choose to go with. There are differences between blockchain technologies, these are a few examples that you should be aware of. The time it takes to complete a transaction, the real-world adoption of this technology, how’s the status of the founders and can they be trusted, and many more.
Storage of Currencies
Just like you store your cash and credit cards in a wallet you’d store cryptocurrencies in a wallet as well. All wallets have two parts: a private address and public address. The difference between the two is that the public address is the code you give to people for them to transfer funds while the private address if for your eyes only to see what’s in your wallet. There are a few different types of wallets, online wallet, mobile wallet, desktop wallet, hardware device wallet, and paper wallet. We’ll get more into those at another time!
Tracking Apps
Just like you can track the stocks you invest in you can track other tokens, the rise and fall of a token, and exchanges that are happening all over the world. For example, a fan-favorite is Blockfolio. This app provides users with a portfolio overview, price notifications, charts & order books, all the latest news stories, global coverage, and it follows over 2000 cryptocurrencies. All the information you need will be in the palm of your hand.
Now that you fully understand everything about blockchain technology and cryptocurrencies your ready to buy some tokens and even give trading a go! Come back soon for more information and you’ll soon become a master of the cryptocurrency galaxy.
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