Maybe you’ve heard of bitcoin, or maybe you haven’t. Have you heard of cryptocurrency? Well, the two are one and the same! Bitcoin’s popularity was slow to grow, until 2017 when its popularity (and value) peaked with over 10 million bitcoin transactions taking place every month. But what does that all even mean? What is cryptocurrency? Where did it come from? Who started it? How can you participate in getting cryptocurrency? If you’re like me, and many others, you have a lot of cryptocurrency-related questions. Hopefully, this cryptocurrency guide for beginners will answer all your questions!
1. What is Cryptocurrency?
Think of your own personal assets. You might have a car, a savings account, land, documents. Now, think of personal assets that you might have in a digital (binary) format. This might include documents, audio, video content, and anything else stored digitally (i.e. not in a physical form). That’s what cryptocurrency is; it’s an encrypted digital asset that works like money (a “medium of exchange”) to secure transactions, to create more assets, and to verify the transfer of assets. One defining characteristic of cryptocurrency is that its use is decentralized, meaning banks don’t really control it, people do! Still following? Good.