What is Cryptocurrency and How Does it Work? All Your Questions ANSWERED!

So I’m sure if you’ve been anywhere on the internet or even watched the news lately you’ve heard of Bitcoin and/or cryptocurrency. Well as crazy as it sounds, yes, cryptocurrency is real and no, it’s not a scam.

Ok I’ll get into that later but let’s get into the reason you came here in the first place.

What is cryptocurrency?

Basically, cryptocurrency is a digital form of currency that uses cryptography for security making it extremely hard to infiltrate. It’s digital or “virtual”, so it can’t be seen or held but allows for quick and easy transactions.

This allows transactions to be taken place across the world seamlessly while avoiding hefty fees and wait times like going through traditional banks. Not only that, since it’s value is determined by the people using it, there’s no interference of government and there nasty ploys to take more money from the people.

Well, I know you might have heard all the craze about Bitcoin lately, remember, Bitcoin is just the first type of cryptocurrency created back in 2009, there are currently over 1,000 cyptocurrency “coins” available.

How does cryptocurrency work?

It gives people the ability to send money by using a specific account id or scanning a QR code and hitting send. When that happens, it begins the process of what is known as “blockchain technology”.

When you send money, you’re also sending a message to the network of that particular currency that includes the sender’s account id, the recipient’s account id, and the amount that each account should change. It also includes a signature to let the network know that it’s coming from the right person. This signature is a secret code or cryptographic key, that is unique and known only to the account holder.

These transaction messages are sent to across the network. In order for a transaction to be added to the ledger, people known as “miners” must solve a complex computational math problem. The first miner to solve the problem adds it to the ledger. The miner is rewarded with a small amount of currency for their efforts. This creates more currency and gives miners an incentive to solve transactions on the network and keep it running. The transactions are sent in blocks and linked together. These blocks create the “blockchain” and since everyone can see the blockchain, it makes it hard for an individual to change a particular transaction.

OK so now that you’re a cryptocurrency expert you might be interested in either buying some Bitcoin or investing in cryptocurrency. So you’re probably wondering…

How do you buy cryptocurrency?

First, let me start by saying I’m no investment expert or financial adviser. I’m going to share what has worked well for me and things that you might want to be aware of.

There’s really a ton of ways to buy cryptocurrency or Bitcoin, but the easiest way is through a website by the name of Coinbase. In fact, if you buy $100 of any digital currency we’ll both get $10 in FREE Bitcoin. You can not only purchase Bitcoin with your debit card, but also Litecoin and Ethereum as well. They recently added Bitcoin cash also. Don’t forget, that means you can sell your crypto for profit when it goes up in value! Click Here to get started.

By now you should have a pretty good understanding of how this cryptocurrency thing works. I hope you use the link above when you’re ready too. Remember, Bitcoin, Litecoin, and Ethereum are the most popular right now, but there are other “Altcoins” right now that aren’t are lesser known and less expensive but could bring a great return as an investment to hold on to.

I hope you learned something from this post and come back as I continue to update. My goals is to share my experience in a way that’s easy enough for anyone interested in buying or investing in cryptocurrency can understand.