What is cryptocurrency?

After I informed a friend about my inactivity on the blog due trading in cryptocurrency, he wondered what cryptocurrency is. The reason I’m never talking with people about cryptocurrency or Bitcoin is because they do not care, they read something on the internet or overheard a conversation an made their judgement. Also if I tell people they should invest in it, and they lose money. Guess who they are going to blame?

What are cryptocurrencies?
Before reading I suggest you first learn a little bit more about Bitcoin. Check out this site: Coindesk

Now that you understand Bitcoin a little bit. You can compare cryptocurrencies a little bit like Bitcoin. It are ‘points’ they call it coins or tokens every coin has a different group of people behind it that create new technology to improve what Bitcoin failed at. No surprise that there are errors to fix. Bitcoin was (one) of the first and therefor has problems. Cryptocurrency communities are trying to fix it; at this moment Verge (XVG) coin is about to make a break through with high tech technology that will ensure your data will be private.

What makes value?

Due these improvements on project, just like what happens with companies, their coin will have a value. If 100 people want 100 coins, then these 100 coins are more expensive then when you only want it.  The difference now is that banks are not yet fully involved into the cryptocurrency world (except for Ripple).

What makes most explanations difficult to understand is that they use terms most people don’t understand. Which makes sense because we never heard of these terms. What I suggest is to first do it step by step. First find out how to get Bitcoins (it’s easy, do some research) and how you can deposit it on an exchange (Binance) and from there look around (You do not need to deposit anything before looking, neither do you need to fill in personal information without withdrawing funds below two Bitcoin)

Once you are comfortable with the website look around at the charts and try to understand it a little bit. After that go to a website like coinmarketcap.com and do research on the coin. Be aware there will be many terms you won’t understand and maybe never understand deepening on how much time you spend on learning.

Once you find a coin you agree with, it could be everything, even a coin that is investing in charity; you invest in it and wait for one day to cash out.

Daytrading cryptocurrency

Eventually you might even get familiar with trading one day and take small bits of profit a day. But be warned! It’s still investing and everything can happen. For example one day I made 5.000 from 1.000 dollar and the next day I trusted a project and went straight back to 1.000 dollar due a screw up (they were 14 minutes to late with an announcement and investors lost their trust.)

Oh, that’s it?

Well no, however I want to avoid using difficult explanations that most people don’t care about to keep it simple. There is enough information in on the internet; but there are a few with simple words. The world of information that is hidden with cryptocurrency  and everything around it that you can keep on learning about it for months to come.

 

Consider registering with my referral link. You won’t notice anything, I get commission over the fee you pay, Binance will only get less and I get some 🙂

 

 

 

 

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