Invented as a side product as Bitcoin was invented, cryptocurrency is slowly being used due to many helpful features. But there are still many people who think it is difficult to use. In simple, Crypto currency is a form of digital money that makes transactions safe and secure. Bitcoin is the first cryptocurrency invented in 2009.
Understanding how it works
In crypto currency, there is a decentralized technology used where the users can store money in the form of coins and can make transactions with it. With this, they avoid going to the banks and hence the fees for making these transactions is very less too. These transactions are made between the coin users where people sell and buy with bitcoins instead of money and hence there is no chance of fraud. SO, whenever a transaction is made, the details go up on the public ledger which a decentralized system. Once the transaction is done, it needs to be confirmed through a process called mining where usually the miner has to solve a mathematical puzzle kind of problem and hence anyone can solve this. Once the block is created, transactions are tracked and coins and transaction fees also get added to their digital wallet.
Getting started for investment
Getting into cryptocurrency is becoming like a gold rush where you invest some amount and money gets increased over night. Hence many people are starting to invest in cryptocurrency.
Buying coins whether it is bitcoin or other si like you get tokens that are digital and not shares. So, once you start with investing in coins, your coins are actually the fuel to get decentralized apps for that platform you choose to transact on. With an increase in adoption and innovations in technology, there is a demand for your coins or tokens which give you returns on your investment. To get started, you need to get an account that also needs to be verified with a driver’s license which will help you in expanding your buying limits. The next step is to add payment methods where you can use credit/debit cards, bank accounts or wire transfer funds as well. Since the transaction once done cannot be reversed, you need to be careful about investing.
Coins or tokens invested are used for a cause. In case of bitcoin, they are used for building a decentralized internet and some codes on a decentralized platform. Care is needed while investing, especially if you are beginner because the transactions cannot be reversed.