What Do You Need to Know More About Cryptocurrency?

Mar 25, 2020 by

Digital currency has received significant widespread attention in recent years, working its way into the news, traditional financial products, and investment portfolios. That said, this is still not a market that everyone is fully familiar with.

If you are just diving into the cryptocurrency market and want to learn more about what crypto is and how it functions, let’s go through a few of the essential points that every interested individual should be made aware of.

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Cryptocurrency

What Is Cryptocurrency and How Does It Work?

If you have heard of crypto in the past, chances are that the best performer, Bitcoin, was the one that initially came to your attention. This is also arguably the best example to reference when learning more about digital currency works. Here are some of the most important points to know when it comes to digital currencies:

  • Cryptocurrencies are digital assets that have a monetary value and can be transferred from one individual to another. Some of the main benefits that are associated with this type of currency include the lack of high fees that often come with bank accounts, ease of use, and the great speed with which transactions are conducted, taking mere seconds rather than several business days.
  • Unlike fiat currency (such as the United States dollar), digital currency products are often fully-owned and controlled by you. Rather than a bank account and a debit card, you store your cryptocurrency on digital software wallets and send and accept whenever you please without having to go through your bank or visit third-party websites (unless you are using popular sites like Coinbase, Kraken, or Gemini to hold and trade your money if you are more interested in investing in digital currency). This decentralization is what made Bitcoin and subsequent projects so successful.
  • While the initial price of some assets may seem high, each digital currency can be broken down into a bit of each crypto that adds up to the total price. This means that you can buy up any asset you want, no matter how small the amount may be.

Of course, while the above does provide you with a general overview of these products, specific cryptocurrencies work differently and some may have advanced features that are not listed above. Make sure to extensively research the asset you are interested in before you decide to purchase it.

How Can I Get Some of My Own?

The good news is, as long as you have a PC and connections to wireless routers or a mobile device with wi-fi access or data, you can get started with digital currency and participate in the ecosystem. Here are a few ways you can acquire some of your own cryptos.

  1. Purchase It on an Exchange: The simplest way to get your own cryptocurrency is to purchase it on an exchange. Some of the biggest exchanges, such as Coinbase, Kraken, and Gemini feature a large number of assets to purchase and exchange. Just make sure that you look at exchange rates, withdrawal fees, and important safety features such as the privacy policy of a site or two-factor authentication across various platforms to make sure that you are choosing the right exchange for you.
  2. Get Crypto From a Bitcoin ATM: If you want to protect your privacy and avoid giving your email address, joining a mailing list, or giving out any other personal information, you may want to look for a Bitcoin ATM nearby that will allow you to exchange cash for crypto. Keep in mind, however, that these products often have a lower purchasing limit and may limit orders as they do not require any personal information.
  3. Collect Small Amounts Through Faucets: If you are looking to earn cryptocurrency online, one of the easiest ways is to sign up for crypto faucets, which are websites that will give you small amounts of various digital currencies for signing in and clicking a button or engaging in tasks.
  4. Coinbase Earn: Coinbase Earn is arguably one of the most lucrative earning opportunities available. Anyone with a Coinbase account can learn more about digital currency and refer friends to earn over $100 in cryptocurrency assets. For now, this seems to be only a Coinbase service and not something that other exchanges like Kraken or Gemini have developed.

Digital currency provides interested users with the opportunity to see what a digital economy would look like as they send money to others via their computer or mobile device, purchase products through online marketplaces, or spend money with a cryptocurrency debit card. If this is something you may be interested in, use the guide above to get the basic rundown on digital currency and get some of your very own.

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