In my first article I explained what are the main reasons to start with cryptocurrency. Then I provided a comprehensive list of the best Bitcoin documentaries for you to watch. If you watched at least few movies then you should have some basic understanding about Bitcoin and crypto currency. In this article I am going to write in detail about cryptocurrency and tell you 10 Quick tips about it.
What is cryptocurrency?
In short terms, Cryptocurrency is a new kind of money that only exists digitally or virtually. Cryptocurency is designed to work as a medium of exchange. It can be transferred between people without using an intermediary, like a bank. Therefore cryptocurrencies were created with the intention to make central banks redundant. They operate independently of a central bank and can be bought peer to peer, via ATMs, through online exchanges or by participating in Initial Coin Offerings*.
Unlike fiat currency – US dollar, euro, yen – cryptocurrency is not regulated by any bank, government or centralised financial authorities. It relies on the power of the Internet to guarantee its value and confirm transactions. Network users verify every transaction and those transactions become a matter of public record. Hence this prevents the same digital currency from being spent twice by the same person. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled. Cryptocurrency and blockchain technology both have the potential to change much of the way our world currently operates for the better. Just like the Internet in the 90s.
There are over 2,000 of cryptocurrencies are available in the digital market right now. Ethereum, Litecoin, Bitcoin Cash, Neo and Ripple are other well-known examples of altcoins. While all these cryptocurrencies try and differentiate themselves to solve specific problems, most of them have the same characteristics.