I’m no expert, but I’ve been in the crypto game since about 2013! I can give you a run down but I’d encourage you to do some research too. Absorb as much information as you can regarding cryptocurrency, the Blockchain, and smart contracts (having an elementary understanding of each of those things will go a long way towards your overall understanding of the potential and scalable growth this technology has to offer, for the present and the future) YouTube, coindesk.com, and cointelegraph.com are great places to get started! Bitcoin.com is also a good place to learn about cryptocurrency technology!
Bitcoin, and the Blockchain technology it’s built on, was created back in 2009 by “Satoshi Nakamoto”. While Bitcoin was the first, and is the most popular crypto, since its inception thousands of Blockchain startup companies have created their own cryptocurrencies to work as kick starter funds and to be used as future payments, rewards, and other incentives on the company’s platform, or in more common terms, to act as a “stack in the company” for a “shareholder”, that’ll soon be you!
Cryptocurrencies are decentralized, stateless, tax free, secure, digital currencies. Unlike the centralized fiat currencies we’re used to, like the dollar, cryptocurrencies cannot be inflated, they're encrypted, and all transactions are private! The decentralized nature of cryptocurrencies means that there are no humans interfering with or manipulating the supply of each coin in circulation. While cryptocurrencies probably won’t replace analog money altogether, I think the digital revolution will lead us towards the adoption of a decentralized “token economy” utilizing DApps or decentralized applications, with more secure transactions, more privacy, and less fraud and corruption.
Bitcoins are created by “miners” on the blockchain. The blockchain is an open source, public ledger, used to store information and create secure transactions! Think of it as an Excel spreadsheet, decentralized and distributed across a vast network of computers. Each computer is known as a “node”. Every time a new block is created and information is stored, or a transaction is created, the information is duplicated, encrypted, and filed on every node connected to the blockchain. In order for that information to be corrupted, a hacker, or bad actor, would need access to every node on the blockchain. Each time a new “block” (space to store info) is created on the blockchain, the miner on the network who volunteered their CPU and electricity, is rewarded with a determined amount of Bitcoin! Only 21 million Bitcoin will ever be mined and circulated, there are currently just over 16 million in circulation. The fixed supply, computing power, and community trust, among other things create value for bitcoin and other cryptocurrencies - simple supply and demand economics!
Today, one Bitcoin is worth just over $14,000! If you are interested in investing some of your disposable income into cryptocurrencies, the best place to start is to download the Coinbase App, link your bank account or credit/debt card, and begin buying Ethereum and Bitcoin directly from the app! The app is a crypto wallet - allowing you to safely store your Ethereum (ETH) and Bitcoin (BTC)! I typically throw a couple hundred dollars a week at Bitcoin, Ethereum, and Litecoin on Coinbase. You don’t need to buy an entire bitcoin to get started, you can invest as much or as little as you want! $5, $10, $100, $10,000 it’s totally up to you, whatever you’re comfortable with!
Once you’re comfortable buying those and you have a small amount invested, you can use the ETH and BTC to purchase cheaper/ less known “altcoins” on crypto exchanges (Similar to the stock exchange). Some good exchanges to check out are bittrex.com, Exodus.io, and binance.com! A couple weeks ago, I invested $100 worth of ETH (~0.2 ETH) in an altcoin that was selling for $.23/coin and by the next morning the coin was trading at $.60/coin and I had a nearly 125% return on investment (ROI). Today, that same coin is trading for $2.86 per coin! Don't work for your money, let your money work for you!
The most important thing to remember, before you invest in anything, is to never invest more than you can afford to lose! Crypto markets, since they’re in their infancy, can be very volatile and change drastically from day to day! While the Blockchain is incredibly secure, the projects utilizing blockchain technology are only as good as the developers behind them. Research is also super important. Do you see an altcoin you’re interested in? Look it up, do your due diligence. Find out who’s behind it, find out what it does, find out what real world problem it solves or aims to solve! Check out it’s graphs on the exchanges or on a coin tracking app, like CoinCap. You just have to remember that investing money is a long term game, if you get caught up in short term gains and losses you won’t have any fun! Patience is a virtue!
Best of luck, friends!
Cheers!
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