You must have noticed that the value of cryptocurrency has been on the rise lately. Numerous people have become millionaires (or even billionaires) through cryptocurrencies such as Bitcoin, but in the end, few people really understand what cryptocurrency is.
If you ended up on this page, chances are that you are looking for more information about cryptocurrency. You have heard a lot about it lately, but you also want to know what these are and – more importantly – how you can earn money with it.
On this page, I will tell you everything about crypto!
What Is Cryptocurrency Anyway?
Cryptocurrency is, in short, digital coins that can be transferred person to person (peer to peer) without the intervention of a bank (or other third party). This concept is known as decentralization.
The best known (and the first) cryptocurrency is undoubtedly Bitcoin, which was invented by the anonymous Satoshi Nakamoto. He invented Bitcoin, which runs on the underlying network called the blockchain.
The blockchain is basically a public ledger in which everyone can see everybody else’s transactions. Because the order book is public and is checked by all computers connected to it, no fraud can occur, and all transactions are correct.
This creates a network that controls itself, without the need for a bank or other third party.
Transfer Money Anonymously to Each Other
The blockchain and Bitcoin have been developed to make it possible to transfer money to each other, without the need for a bank.
If you want to transfer money from your bank account to someone in Japan, it often takes 3-4 business days, and there are also quite a few transaction costs involved.
This is not the case with cryptocurrency. You can transfer your crypto to anyone in the world in seconds.
This is 100% anonymous (your name is not linked to the transaction), and therefore very fast. If you want to transfer Bitcoin to someone on the other side of the world, this happens in a matter of minutes.
Banks Sidelined
Because you can transfer crypto coins from one person to another, the banks are ultimately sidelined. You do not need a bank to send or receive cryptocurrency.
In that respect, Bitcoin also came at the ideal time, namely during the banking crisis.
Banks went bankrupt, but Bitcoin kept rising in value.
It was ‘the perfect storm’ for Bitcoin.
Innumerable Cryptocurrency
In addition to Bitcoin, thousands of other cryptocurrencies have now been added.
For example, we have:
- Ethereum
- XRP
- ZCoin
- Verge
- Cardano
- VChain
- 0x
- EOS
… and much more! Even the Netherlands has its own cryptocurrency, namely the Gulden.
Each cryptocurrency has its own unique characteristics. I must add that there are also a lot of ‘shitcoins’. Everyone can make their own coin. It is therefore good to look out before you buy cryptocurrency. Always do good research.
Characteristics of Cryptocurrency
Below are some characteristics of cryptocurrency.
- Sending and receiving cryptocurrency is 100% anonymous
- The value can fluctuate enormously
- Payments are irreversible. Because there is no intermediary or ‘parent’ organization, no one can get your money back if you transfer money incorrectly.
- Sending and receiving Crypto is super fast. You can transfer crypto to someone on the other side of the world within two seconds.
- Everyone can buy and receive cryptocurrency. It does not have a minimum age, nor is it tied to your country.
Increase in Value of Cryptocurrency the news, you often hear that a certain cryptocurrency has increased enormously in value.
That is because it is still a young market. Cryptocurrency can rise 50% (or more) in one day, but can also fall 50%. The market fluctuates enormously.
This allows you to achieve nice profits, but also big losses.
So invest only money that you can afford to lose, and most importantly, have a long-term view. Nobody knows what will happen in the future, and because the cryptomarket is so volatile, it can go up and down enormously.
How Can You Buy Cryptocurrency?
I have been investing in cryptocurrency for about two years now, and I can imagine that after reading this article, you also want to start with cryptocurrency.
But how do you start?
For beginners, this is often a ‘maze’.
Bel, now I will tell you the easiest way to start cryptocurrency.
- Create an account with Luno (South Africa) or Binance (International)
- Complete your account verification
- Go to Buy / Sell
- Enter how much BTC (or other crypto) you want to buy
- Fund your account
