The first thing you have to do when you are new in the cryptocurrency or blockchain industry is to accept that you have a lot to catch up.
You’ll have to research until you have passed the threshold of enlightenment and start to see trillions and trillions of codes and numbers in future opportunities.
But of course to gain access to “Matrix-like” super powers you have to be very passionate about this promising domain that has become in the past years a very profitable business. So if you have just discovered Bitcoin and the other major cryptocurrencies, this is a small guide meant to shed a bit of light on the intertwined path of the crypto world.
What is a Cryptocurrency?
A cryptocurrency is a digital or virtual currency that uses cryptography. A cryptocurrency is difficult to counterfeit because of this security feature. A defining characteristic of a cryptocurrency is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
In other words, cryptocurrencies are merely money generated on software platforms or “blockchains,” without any implication of the institutions of centralization (like banks). It is “self-sustainable” with help from the users that are trading it. The most popular coins right now are of course Bitcoin, Litecoin, Ripple, Ethereum, Cardano, NEO, and others. Each individual coin has its own properties and has various uses.
Link by Link you get a Blockchain
Imagine you have a box with goods and on the lid of the box your unique personal information. You choose to send it to Bob so that he can send you back another box with better goods. Bob lives on the other side of the planet; you don’t know him, you don’t trust him and vice versa.
Now imagine thousands of similar transactions made by other people piling up. The operations are recorded continuously in a public ledger, and each transaction has a code which is called a “Hash.” This chain of events creates a Blockchain, and it is similar to a full history of banking transactions where the statements are recorded block by block (a block is like a statement). To simplify it, even more, the blockchain is a database spread around on thousands of computers.
Is it safe?
There are many risks in the crypto world, but the transactions are very safe because at its core design is cryptography. Each transaction has a code of encryption similar to a fingerprint; one which is public (used in operations) and one that is private.
The encoding keeps the information safe while it travels through the blockchain. Anyway, if a hacker ever compromises a piece from a file, he will not have access to the entire data, thanks to the benefits of the system that defragments even a single file in small pieces and fractions of information.
You’ll need a virtual wallet
The wallet is built to keep both your private and public address and also your money. The public address is where you receive your funds from other users. The private address is the password which you use to access the funds and also send it to other people.
It is indicated never to expose the password otherwise you’ll probably lose all your money. There are a few types of wallets from which you can choose. The most popular and most accessible to use is the Online Wallet but also the least secure. For better security, you can use a Mobile Wallet, Desktop wallet or a Hardware device wallet.
After acquiring cryptocurrencies, you can start trading. Each transaction has its own set of rules, so you need a bit of research before jumping head-on into the trade and exchange business.
This is basically it. All you need is the courage to step into the future, a lot of patience, research and of course money to invest in currencies or an ICO.