A Layman’s Explanation of Crypto
An Introduction to Cryptocurrencies (digital currency.) Understanding the basics.
Digital (Crypto) Currencies
Cryptocurrency is a form of money that exists on a global computer network. Each one is unique, based on its individual code & community.
Open Source
Open Source Digital (crypto) currencies are “open source” software projects, meaning that the code is publicly visible online & free for all to use.
Decentralized Network/Currency
Decentralized: Digital currencies, unlike national (or fiat currencies) are not controlled by a bank or central authority.
Peer 2 Peer Transactions
Peer to Peer: Digital currencies are sent from person to person, without a middleman. This allows for instant transactions globally.
How to Buy Cryptocurrencies
Get Some Crypto: This can be done using cash, trading on an exchange, or by accepting it as payment.
Watch the short video below for more information on purchasing Cryptocurrencies.
Initial Coin Offering (ICO)
Initial Coin Offering: An ICO is a crowdsale in which a company gives their Cryptocurrency in return for your investment of another.
Crypto Wallets
Wallets: Just like fiat currencies a wallet is designed to hold your crypto in a safe place, but these wallets come in many forms.
Addresses & QR Codes
Addresses & QR Codes: Your wallet comes with a unique address that is accompanied by its corresponding QR code. They are one in the same and are used to exchange crypto with others. Either by scanning the QR code with your wallet or by a copy & paste of the address.
Public/Private Wallet Keys
The Juggernaut: Bitcoin
Bitcoin: The first digital currency, was created by the elusive Satoshi Nakamoto & came into existence in 2009.
There’s a lot of mystery surrounding Nakamoto, but it keeps things interesting.
Altcoins & Tokens
Altcoins & Tokens: Digital currencies are often referred to as coins or tokens & can be confusing for those just beginning. Altcoins are pretty much anything that’s not Bitcoin and tokens commonly referred to as ERC20 tokens make up the next majority of digital currencies. They are the “coins” running off of the Ethereum Blockchain; they are without their own so they use Ethereum’s for several reasons.
However, since Bitcoins inception, thousands of “alternative” coins have come into existence & continue to do so on a daily basis.
I remember just a little under a year and a half from now when I first started investing & trading Cryptocurrencies, there were only a handful of ICOs running at any given moment. Then, things went nuclear, and these ICOs were selling out as fast as they could pop up. It was certainly a hectic time wrought with confusion on my part, especially since Steemit wasn’t the powerhouse that it’s growing to be. In fact, there were so few people posting that I subscribed to the entirety of Steemit’s RSS feed.
Had information that was easily understood been more prevalent back then (like it is now) I would’ve had more time to devote to Steemit and my writing.
This was a really basic & straightforward post. There are many things that I chose not to address so as to avoid creating any confusion for those still new to the cryptoverse.
As I begin to post more and more, the information will progress as well, but it is my meaning to create material that is extremely easy to understand, and for that reason I will do my best to stray from using my natural idiom so as to keep the information I will be sharing as easy to understand as possible.
Very insightful. Great post for those new to cryptocurrencies.
Thank you for sharing your time and knowledge with us.
You don't have a recent post, so I am upvoting this comment to say thank you for your continuous support!
I'm glad you enjoyed it! It's really basic, but it's my hope that it helps.