Cryptocurrency is the world’s eighth wonder, according to notable analysts and blogs like CryptoManiaks. It is one of the most talked about technological advancements in the world since we could say the Internet or self-driving cars. Undoubtedly, Bitcoin has made a considerable change in the financial sector, mainly for the better.
The cryptocurrency boom took many people unaware, with many people turning millionaires overnight. You may wonder why some people suddenly became rich; our best bet is crypto. Bitcoin changed the game for investors, traders, and businesses worldwide.
Hence, everybody wants the coin now, but their crypto education needs improvement or more refining. Besides, you only jump into Bitcoin with prior knowledge; you could get lost because it is a vast industry. Therefore, the main goal of this article is to give you the basics of Bitcoin.
What is cryptocurrency?
The first step is to truly understand cryptocurrencies because many still need to understand their extent fully. Cryptocurrencies were digital assets that could serve various purposes, like buying, trading, or purchasing goods. This description was a result of Bitcoin, which was the first-ever cryptocurrency. Initially, Bitcoin was a means of payment without the control of any central authority. Hence the reason why it is common in the financial sector.
Cryptocurrencies are available for various reasons, depending on what the creator wants to use them in the world. For example, Ethereum is a framework for other digital assets or applications. Also, some coins are tied to various fiat currencies like the US dollar, known as stablecoins.
However, one thing is common to all of them: they are all digital assets. In addition, cryptocurrencies are perfect for day-to-day transactions due to their speed. They are also very secure as they operate without the involvement of any third-party authorities.
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How does it work?
When talking about Bitcoin, one word you will often hear is blockchain technology; it is the driving force of the digital currency world. Cryptocurrencies operate on blockchain technology, which keeps a record of the transactions in a public ledger.
Mining is a very energy and time-sufficient process to obtain cryptocurrencies. For earlier Bitcoin owners, this was the primary means of getting the coin; many spent hours mining different coins. However, some coins are limited, meaning new ones will only be available once you complete the collection. Therefore, there has been a reduction in the rate at which these coins are available. As a result, most people buy Bitcoin from the different brokers in the industry today.
One thing worth knowing is that Bitcoin is not tangible like fiat currency. You can’t touch, feel or see your Bitcoin. When you own crypto, you have two sets of keys; your private and your public key. The keys enable you to transfer Bitcoin from one person to another. Hence, it is always wise to safeguard these keys. Therefore, this brings us to our next topic in understanding the basics of cryptocurrency: Bitcoin exchange.
Bitcoin Exchanges: What are they, and how do I use them?
The most common and less stressful way of getting crypto nowadays is through a crypto exchange platform. Crypto exchanges are third-party applications where you can exchange fiat currency for any coin you choose or trade one coin for another. The importance of Bitcoin exchanges in the digital currency sector cannot be understated. This role is because they provide so many advantages; in addition to buying and selling Bitcoin, some exchanges give you a wallet where you may keep your coins.
Also, these exchanges have charges for each transaction, with different exchange platforms having their amount charged. Therefore, it is imperative to do your research to ensure that the Bitcoin exchange fits your taste. In addition, like this article, there are other crypto guides out there that can help you choose a Bitcoin exchange platform.
How do I use a Crypto Exchange Platform?
You may be wondering how to buy crypto using a crypto exchange platform. Please don’t be scared; it is a straightforward process, and you can easily follow the simple steps. However, these steps are very detailed; even a newbie investor like you will get it in one go. These steps are:
Step 1: Select a Reputable Crypto Exchange
It’s crucial to select a Bitcoin exchange platform. Compare the number of cryptocurrencies offered, their fees, deposit options, and security features. Ensure they have quality resources. A good exchange platform takes crypto education seriously.
A reputable exchange platform could be the difference between having a good or bad time on your crypto journey. Hence, this step is significant, and you should not take it lightly.
Step 2: Fund your Account
After registration, the next step is to fund your account to begin trading your favorite crypto. Therefore, Bitcoin exchange platforms allow you to use fiat currencies to purchase any crypto of your choice. Hence, you can use credit and debit cards, wire transfers, or e-wallets.
It is essential to know that the time taken to complete a transaction depends on the payment method selected. The same goes for the charges, as wire transfers have a higher transaction fee. So always choose the one which suits you best.
Step 3: Place an order
You can place an order on any coin of your choice once you have successfully funded your account. To buy any cryptocurrency, click on the “buy” icon on the homepage, select the coin of your choice, select the amount you wish to purchase, and confirm your order. Hence, you can buy coins like Bitcoin, Litecoin, Ethereum, and Dogecoin using a Bitcoin exchange.
The exact process is applicable when selling any of your coins. So, for example, you can sell your Bitcoin for fiat currency or trade it for other cash.
Conclusion
The article has given you the basics of cryptocurrency and the necessary information to start your crypto journey fully. Crypto is now making it the perfect time to join the digital currency bandwagon.
