@DrJoeAbah I will start here so as to make it a thread. Please kindly follow and spread up. Cryptocurrency Basics (short as Crypto) >>>>>Thread
Cryptocurrency is a digital entity, call it money or asset that is used as exchange just like the physical fiat we all know. In the case of this digital money, It is built on the internet, It run on a system called Blockchain - It is the mode of its transfer, and all.
It is very sophisticated and built on the internet (digital), It has no limit and spending rules, It is controlled by its owner. Cryptocurrency has no Central Bank – No one is controlling its spending but the people themselves.
It is tagged by its early adopters to be the freedom; currency of no Bank protocols or Government limitations(regulation). Crypto has no limitation of region, Since we have same internet. Anyone who have access to internet have access to spend this currency.
Will like to mention abit, what blockchain is. Blockchain is the root technology that brought about the whole story of cryptocurrency, it is simply a time-stamped series of immutable records of data that is managed by a cluster of computers -not owned by just single person.
Blockchain is what make crypto to be valid as money. The sole things blockchain does is that: It keep records of all transaction of crypto open and accessible to everyone, It help to avoid double-spending.
This technology, Blockchain came into light in 2008, developed by a person (or group of people) using the name Satoshi Nakamoto. (It is assumed that the name, Satoshi is not real name but a disguise name).
Blockchain uses an high level technology, its network has no central authority — should I call it a democratized system? Yes, It is decentralized. Blockchain has alot usages: One of the usage of blockchain is its usage in finance/money which is Cryptocurrency.
Back to cryptocurrency, they are as well reffered to as coin(s), we have many of these cryptocurrencies. The first and the most popular of them is Bitcoin. I will use bitcoin to explain what cryptocurrency is generally. PS: Bitcoin (BTC) is created by the same Satoshi.
Bitcoin came into existence in 2009 after some time that Satoshi released the white paper of how the currency will work and how it will make money spending to be digitalized and decentralized. Link to whitepaper:
Without all the jargons, When bitcoin started, It was a new system which no one was used to before. And for a new system to be popular and implemented into use, it has to start with adoption, The first adoption started 2010, when a bitcoin miner bought two pizzas for 10k BTC.
You may do a little read on who miners are, I have a link. https://t.co/MYa7bw5yNW Bitcoin was becoming popular after 2010 but adoption was still low, afterall, it was a new technology and only few believed in it. Price history said btc was still less than $10 until 2013.
After 2013, a new story of adoption, information spread and institutional involvement brings about a new the big evolution digital of money - bitcoin. All these happens and we are here today. Now I will be using Some key factors in earlier question to bring points closer>>>
1. HOW DO THEY WORK Just like fiat but digital, transparent and decentralized and capped (in the sense that the total number of their existing units are known) Eg: Bitcoin has only 21million units in existence and all transactions from 2009 can be seen by everyone on Blockchain
No new Bitcoin can be created apart from the existing 21million, one of what causes the price rise - scarcity of course. For how they work, I will pause here.
2. HOW DO YOU BUY THEM? Cryptocurrencies has gained alot adoption to the extent there are alot institutions who are into crypto brokerage. a. Brokers Institutions b. Exchange (where buy and sell happens) It is easier to the extent one can buy crypto with or sell to fiat.
3. Black market (Like one to one sale and individual brokers) Popular Brokers are eToro, IG, City Index, Avatrade, XTB and all (dyor) Exchanges such as Binance, Kucoin, Luno, Coinbase, Bundle Africa Quidax and all.
NB: Most times, due to involvement of government regulations and AML Rules. One need to pass KYC/AML verification to buy crypto with fiat on those exchanges.
3. HOW DO YOU TRANSFER THEM? After you buy, you want to keep them where you can see and monitor them. Just like your bank where you have your personal account. Yes! There're crypto Wallets - The place you keep your different crypto assets. Alot of them on PC, devices and iPads.
Crypto Wallets as they sound are like secure pulse where you keep your crypto coins. In this sense, It is not like your bank account with limits and likes, you can have up to any ammount of crypto without someone knowing you own them. No Limit on Transfers and transactions.
Unlike banks that has working hours, Cryptocurrency transactions are automated codes built on Internet that doesn't sleep. Since 2009, transaction continue all day till the moment you read this and beyond and it will continue until the day there is no Internet - Smile☺
There are different kind of wallets. The one that gives you full access over your assets and The one that disguise like your bank - that overlook your assets for you. You are to choose the one that suits your taste and usage. Lol, tho if you asked me, I will choose freedom.
Basically, you can not own crypto asset without a wallet. Just like how you can't have money in bank without an account of a type. (may not recommend wallet openly for some reasons) Unlike bank, Owning a wallet is free and can be done by yourself by just downloading any good one
To transfer crypto, You need wallet addresses. Just like bank account numbers/ID Sender send to the wallet address of the receiver. The reciever have the them. (depending on the coin you are sending) Transactions are very fast and progress can be easily tracked at any stage.
There is always Transaction IDs that is a record ID of every transaction on Blockchain which make every Cryptocurrency transaction so transparent. Again, there is no limit to crypto transactions either 'ammount per sending' or 'daily cap'.
4. HOW DO YOU TRADE CRYPTO? Crypto Trading, Just like other asset trading is a skill of taking advantage of price changes to make more crypto as gain. This is a skill one can learn from studying or researching/practicing. (I have an input for tjis at end of thread)
Crypto Trading Is Wide and has alot of its part. One can easily learn as profession or as side Just follow till the end for more..>>>> Progressing.>>
5. FLUNCTUATION OF VALUES? Yes, The Almighty BTC, Bitcoin was traded at a point this year around $5000 but few days before this tweet, it touched $23000. Yes, the price FLUNCTUATION exists just like other digital assets. (There is a lot to this and ways to take advantage).
6. RISKS DUE TO OWNERSHIP Many: Loss of Assets (Access) Loss of Value Loss due to wrong timing of investment Loss due to ignorance. Some other underlying loss factors are all there. (if you asked me)
7. FRAUD RISK Yes: Afterall it has to do with money. It is money itself. May be wrong purchase of wrong crypto. Loss due to investment in wrong hands. But almost all risks can be easily avoided when good researchs and learning is done.
CONCLUSION: It might be hard to have the grasp or have crypto full guide from these thread but I hope these few break-downs has done a bit exposition of Cryptocurrency. I have a crypto guide I am working on with my Team which is scheduled to launch early next year. >>>>>
There is where I made a Easy and Simple to grasp 'Step by Step' scattering of how to "Earn Free", "Invest The Right Way" , "Get started with Trading of Crypto". It is 'Break down to atom' of simple and easy way to earn some fortune from crypto by starting with little or nothing.
I do engage well on Crypto Topics more on WhatsApp, You can easily connect with me and follow up with some time to time Crypto tips I do share. I am on here, We can connect, grow, learn and earn while we gradually move closer to future of money. 😎😎😎
Thanks for following till the end. I appreciate well, this opportunity. May massive BITCOIN rain on YOU all. And if you asked me, I got to know Crypto 2016. I am Sunnyday, A Nigerian. #cryptocurrency #BTC 😎 😎