Hello Hivers, am Here to explain cryptocurrency in a simple term. Before you get started investing in cryptocurrency, there are a few things that you need to know. The first is that cryptocurrency is entirely a digital money. There are no coins, there are no paper, there is is no underlying asset backing it up. When talking cryptocurrency, you probably also heard the word blockchain and are maybe wondering what that means. Blockchain is at the heart of what cryptocurrency is, essentially blocks of information that are attached to each other along a chain, and that's what makes up the digital money itself. If this sounds confusing, it's important to understand that this is where it really gets its power. When you go to a bank or you buy something from a store, they have to record that transaction in a ledger. Most of these ledgers are digital now. But they used to be like pen. And paper, and that's how they kept track of the transfer and exchange of money.
With cryptocurrency, that ledger is actually part of the currency. That's what the blockchain is. Also note this, that in every single transaction that happens, the transaction information automatically gets linked as a block of information in the chain, that's how it works. Cryptocurrency is totally unregulated. It's not governed by any bank, government, country, or governing body. In North America, we enjoy a lot of currency and political stability, but other countries around the world facing large political and monetary upheavals can't rely on their local currency to protect their wealth. Cryptocurrency is a great way for them to protect their assets by storing it outside their country's money. Finally, the major benefit of this technology is anonymity, because all the information of each transaction is held within cryptocurrency itself. It's not like using a credit card that leaves a record and a paper trail of your information. For a lot of cryptocurrency transactions, this. Meant that it's been used for some morally questionable things, including the illegal weapons. Trades or the drug trade. But for many other people, it's just a way of protecting their privacy. Something can't behave like a currency if It can't be reliably exchanged for things of value. If you're cool with watching your investment go up and down by 20% or more in a single day, then you. Can probably handle investing in cryptocurrency. But if watching your dollars disappear on. Your wallet ever makes you a little Nervous, then you might want to stay out of market until things calm down. Because as we all know, cryptocurrency is not and will not be insured by any bank or governing body so take your risk safely amd careful. If your Coins are ever stolen or lost, then count it has it's gone forever. The last thing is we don't know which coin, if any of the current. Ones, are going to be the ones most useful in the future bitcoin is. Getting all the press, but it's definitely not the only one. And when compared to others, it might not even be the best.
