Tech Diaries|| 17/05/2022 || How Cryptocurrency Works: A Beginner's Guide ||

You may have heard the word cryptocurrency and While cryptocurrency, also known as digital currency or virtual currency, can be confusing at first glance, this guide will help you understand exactly how it works.

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Why do we need cryptocurrency?

For more than a decade, digital wallets and exchanges have been used to store and trade various forms of currency. But cryptocurrencies like bitcoin (BTC) have exploded in popularity and functionality over recent years, leading to an explosion in demand from both individual users and major companies looking for new ways to pay for goods or services.

The history of cryptocurrencies

The first cryptocurrency to be created was Bitcoin in 2009. Who made their own modifications to cryptocurrencies – some adding features like smart contracts or decentralized applications; others (notably Nick Szabo) with a more holistic view of what currencies should be like.

Benefits of using cryptocurrency

While you don’t have to pay additional fees, you’ll be doing your part to minimize environmental impact and make sure more of your money is going directly into supporting a cause that you care about. Many charities currently offer cryptocurrency donations, including Save The Children. So when shopping for gifts and/or donating money to charity, think about paying with cryptocurrencies rather than cash or credit cards. Also, if you hold any coins long-term, they will gain value in addition to performing social good!

Risks involved in using cryptocurrency

The number of cryptocurrency scams is rising. If you want to get into cryptocurrency, tread carefully! Bitcoin and other digital currencies are very volatile in nature. This means that their prices can swing wildly up and down in a matter of hours or days. If you want to make your money grow, then investing in cryptocurrencies is not for you! There are a lot of ways that crypto trading can be very risky, so you need to know exactly what you’re doing before getting involved with them.