CRYPTO 101: CRYPTOCURRENCY GUIDE FOR DUMMIES 2020

Maybe you have heard something called ‘Bitcoin,’ ‘Litecoin,’ ‘Ethereum’ etc. Have you always wondered what these terms mean? Then you’ve come to the right place.

Better known as digital or cryptocurrencies, Bitcoin, Litecoin, Etheruem etc are encrypted and decentralized digital currency, which is transferred between peers and confirmed in a civic ledger by means of a process known as mining. Still confused?

Fret not! Today, we will be discussing it in a more simplified way below by dividing it into three parts; first how it began, how it works and finally how to use it.

HOW IT STARTED

In the year 2009, a pseudonymous personality named Satoshi Nakamoto created a currency that transforms how transactions are being done. Bitcoin was introduced with a regulated peer to peer cryptography system rather than a financial institution. 

Cryptocurrency is a digital currency that makes use of high cryptography in carrying out secured online transactions, verification, and creation of further units. Unlike other digital currency, cryptocurrency uses a decentralized system and blockchain technology which enables a secure and transparent transaction. 

Cryptocurrency is not controlled by any financial institution due to its ledger technology. Transaction carried out with cryptocurrency is totally controlled by the owners or the digital wallet. 

HOW CRYPTOCURRENCY WORKS

There are some basic terms to note in order to understand how cryptocurrency transactions are performed. They are;

 

  1. Public Ledgers: A cryptocurrency public ledger is a storage or data management system which is in a form of blockchain made up of blocks in series. Details of transactions are stored in the blockchain after they have been verified and authenticated by the customers involved. Storage and recording of transactions on public ledgers begin from the start of the cryptocurrency transaction.
  2. Transactions: The exchange of crypto between two digital wallets is known as a transaction. When a transaction is made, wallets are then encrypted by an electronic signature. The transactions are submitted to the public ledger and wait for confirmation. The electronic signature is an encrypted data made by a cryptographic function that provides mathematical binding that the transaction was actually done by the owner of the wallet. Due to this cryptography, it is impossible to hack a user’s wallet or carry out illegal transactions.
  3. Mining: The process of adding transactions into a public ledger and the confirmation of transactions is called mining. A miner is whoever carries out mining operations. In order to store transactions in a public ledger, a miner will have to solve complex mathematical problems. Mining is an open-source that allows anyone to confirm transactions.

HOW CRYPTOCURRENCY CAN BE USED

 

  1. Investment: cryptocurrency has made it possible for almost everyone with internet access to become an investor. Previously, access to foreign deals and transactions were only available to those who are experienced in capitalist ventures, but with the creation of cryptocurrency, there have been various platforms and access for a broad range of investors from various locations. 
  2. Private Transactions: Due to the anonymity of cryptocurrency, users can make transactions that are not under the control of any financial regulation or even the government. Transactions are made in a peer to peer system and can only be confirmed by the original owners of the wallets.
  3. Low-cost transfers: One major and very popular use of cryptocurrency is that it allows users to make and receive payment at a very low cost and at a high speed. Foreign transactions done with cryptocurrency would take a long time and would have to pass through an intermediary before the transactions would be completed.

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  • Sign up at LinqCash so you can be assigned a cryptocurrency Wallet
  • Once done, just transfer your Bitcoin to your LinqCash wallet address

In conclusion, for a fast, effective, and secure cryptocurrency transaction, sign with LinqCash and experience fast and secure cryptocurrency transactions today!

 

Disclaimer: The blog content above does not constitute financial advice in any way whatsoever. Nothing published by LinqCash constitutes an investment recommendation, nor should any data or Content published by LinqCash be relied upon for any investment activities.

LinqCash strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.