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What Is Cryptocurrency? Simple Guide for beginners.

As technology moves forward, it unfolds lots of opportunities ahead. The cryptocurrency (or “Crypto”) world is becoming more and more popular. It sparks the interest of lots of people all around the globe.

Despite the fact that Cryptocurrencies have been around for 10 years already, some people are still hesitant to hop on the train. Usually, it’s only because they lack information and understanding.

You might have read several articles, trying to learn more about Cryptocurrencies. Most probably all you have seen are random charts and sentences which made zero sense, leaving your question unanswered: What is Cryptocurrency?

In this article we will discuss several topics:

  1. What is Cryptocurrency?
  2. How many Cryptocurrencies are there? How to calculate each’s price?
  3. What is the mission of Cryptocurrencies?

cryptocurrency for dummies

What is Cryptocurrency?

Firstly, Crypto is a digital currency. Which can be exchanged online for different goods and services. For example, take casino chips. They have a financial value that can be exchanged for the original currency. One might need specific Crypto to pay for specific goods or services.

Secondly, Cryptocurrencies work with the help of a technology called Blockchain. Simply said, Blockchain is a decentralized network that runs all around the world using lots of computers to process and record transactions.

Thirdly and most importantly, one thing that attracts the most attention is its security. If you store your coins properly, other people will not have access to it without your consent.

Moreover, you keep money in the bank thinking it’s the safe heaven? While there is no reliable data on this for the current year, data breach statistics from 2018 show that over 2.5 billion accounts were hacked in that year. That amounts to roughly 6.85 million accounts getting hacked each day or 158 every second. Knowing how to store your cryptos will put you ahead of the game. It will ensure your money is safe and inaccessible by others.

cryptocurrency guide

How many Cryptocurrencies are there? How to calculate each’s price?

According to data from CoinMarketCap, more than 7,800 different cryptos exist today. Price varies for each Crypto. Currently, the largest Cryptocurrency is Bitcoin (54,900 $) with the biggest market cap.

The price of each coin depends on its market cap and the total amount of coins in circulation(Circulating Supply). If you want to calculate the price of the coin, simply divide its market cap by its circulating supply.

For example, 18,633,131 Bitcoins exist nowadays. It’s total market cap equals to 1,023,030,209,517 $. Divide BTC’s market cap by its circulating supply. It is roughly 54,900 $, giving you the current price of a coin.

What is the mission of Cryptocurrencies?

The mission of most Cryptocurrencies is one: To make our lives easier.

If you look into the current financial structure, it has many flaws, such as inflation, lack of security, lack of anonymity and etc.

Cryptocurrencies are missioned to fix all those flaws that today’s system has. By making transactions and other activities safer, faster, cheaper and more stable.

Once you become the owner of any kind of crypto you automatically become an important part of the market. Since major Cryptocurrencies are owned by different people all around the world, it’s almost impossible to manipulate their prices.

For example lets look at Bitcoin. Several million people own this coin. Therefore, it is almost impossible for certain group of people to speculate the market and gain the control over it, making the interaction with Bitcoin safe and reliable.

what is crypto

In conclusion

In conclusion, Cryptocurrency world is in it’s early stage of development. No, you are not late to the party. Day by day, technologies become more refined. Involvement in Cryptos will not only affect your financial gains, but also play the large role in the mentioned process.

There are a lot of things to keep an eye on. We will be discussing many aspects in detail further on our blog. If you are planning to invest in Cryptocurrency and do not know where to start, read the following article: How to Invest in Cryptocurrency 2021

what is cryptocurrency

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