WHAT IS CRYPTOCURRENCY, HOW DOES IT WORK, AND HOW TO INVEST IN IT??
* Cryptocurrencies are very volatile and subject to market risks. I do not recommend to invest in any crytpocurrencies. Viewers’ discretion is advised.*
Cryptocurrency is decentralized digital money or virtual currency that is based on blockchain technology. The main feature of cryptocurrencies is that they are not issued by any central authorities.
A blockchain is a digital ledger whose access is distributed among authorized users. This ledger records all the transactions ever made in the cryptocurrency world.
The access to this is shared between its users and the information is transparent, immediate, and “immutable”. Immutable states that blockchain records cannot be modified or tampered with- even administrators cannot modify or tamper with the records.
A Centralized system refers to the regular money that we use, which is governed by Governments and central authorities.
A Decentralization system in Crypto means no authority can be held responsible for supervising the money transactions and everyone can see the transactions that have taken place before on the blockchain.
How do they work ??
As we know Cryptocurrencies are not controlled by the government or central regulatory authorities. As a concept, cryptocurrency works outside of the banking system using different brands or types of coins — Ethereum, Bitcoin, Solana, etc.
· Buying, Selling & Storing:
Investors today can buy cryptocurrencies from central exchanges, brokers, and individual currency owners or sell them in exchange for money. Exchanges or platforms like Binance and FTX exchange are the easiest ways to buy, sell, and store Cryptocurrency.
· Mining:
Cryptocurrencies are generated through a process called “mining”. This is a complex process. Miners are required to solve certain mathematical puzzles over specially equipped computer systems to be rewarded with coins in exchange.
· Buying NFTs:
Some coins like Ethereum and Solana are used to buy NFTs. NFTs are digital art that is linked to the blockchain, NFTs are assets based on the blockchain with unique identification codes.
NFTs include Digital art, Collectibles, Music, Trading cards, Domain Names, and much more.
How to Invest in cryptocurrencies ??
Investing in cryptocurrencies is very easy but the crypto market is very volatile and thus this blog does not recommend any cryptos to buy and sell.
After getting done with all the verification processes you will land on this page
1. Choose which cryptocurrency exchange you want to use
2. Establish an account with the cryptocurrency exchange
3. Fund your account with fiat money
4. Decide which cryptocurrency you want to buy
5. Place a buy order for your chosen cryptocurrency.
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