Ever since the Bitcoin rise to prominence, many people are wondering what is cryptocurrency and how to buy Bitcoin.
Well, Bitcoin is a cryptocurrency, and it’s not the only one. There are a slew of cryptocurrencies out there, and Bitcoin is merely the original and most valuable per unit.
Bitcoin is the best known cryptocurrency.
So what’s this about and how can YOU profit?
What is Cryptocurrency?
Cryptocurrency is digital money, or a digital store of value. Cryptography is used to create and store cryptocurrency.
“A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.[1] Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.” [*]
Cryptography is using mathematics and codes through a computer system to scramble sensitive information so that only the rightful recipient may see the protected information. It’s like an insane number crunching.
Cryptocurrencies like Bitcoin, Ether, Ripple, Monero, Zcash, Litecoin, and others, also have a digital ledger known as the blockchain, where all transactions are coded. Some of these currencies, or coins, use the blockchain for other use cases, like the smart contracts features of Ether (Ethereum) and Ripple.
So when someone asks what is cryptocurrency, they are asking a question that can only be answered a certain variety of ways, and of they are not computer savvy, then the answer may confuse them even more.
What is Cryptocurrency Wallet?
A cryptocurrency wallet is a digital “wallet” that can hold the cryptocurrency on a user’s hard drive or other computer memory device within a computerized device such as a laptop, tablet, or phone. Thumb drives and other secured hardware based solutions have also been created to make moving and storing these wallets easier.
You can buy bitcoin or other coins wherever you have assets that can purchase. Some exchanges let you transfer fiat money like US Dollars or Euros into the account to fund it, while others only accept cryptocurrencies, which you would send over from one exchange to another, or from your hardware wallet, if you have one that has assets.
So, if you need assets on an exchange that has a cryptocurrency that you want to buy, but that exchange doesn’t let you do a bank transfer or credit card purchase, you must do it on one that does, usually for Bitcoin, and then send the Bitcoin to this exchange and exchange that for whatever cryptocurrency that you are trying to buy. It’s a bit roundabout but it works.
What is Cryptocurrency Faucet?
A cryptocurrency faucet is a site set up to distribute parts of digital currencies for free for clicking on something, for clicking ads, or for playing a simple game.
They don’t give much away, but there are ways to leverage that into higher earnings via mining sites where you can exchange your earned cryptocurrencies for higher hash power to put into your cloud mining account and earn more coins on the mining side of things.
What is Cryptocurrency Mining?
Cryptocurrency “mining” is a metaphor that uses the idea of mining for gold or valuable assets, but in this case, digital cryptocurrencies have to be earned by completing complex cryptographic tasks by a specialized program and computer. The more coins that have been mined would make future mining harder, thus simulating the scarcity of real mined assets like gold or diamonds, where the more you mine, theoretically, the less would remain in the Earth to be discovered. This simulates the gold standard and fights cryptocurrency inflation and deflation.
“Mining” cryptocurrencies like Bitcoin is a way to create these valuable digital currencies out of thin air by having computers number crunch through complex calculations until blocks are completed and checked. After the solution is verified, the miner is rewarded with the currency.
You can mine cryptocurrency with your own hardware, but it is a very expensive business, since you need top flight hardware, and most mining operations actually use grids of computers and specialized hardware to do the mining. It creates a lot of heat and uses a lot of power. You can’t even break even for a year or more, so many have pooled their resources into cloud mining operations where the hardware is owned by a central entity and the mining power, or “hash power” is rented out for a fee. The difference between the fees and the reward is the net profit that the mining hash power renter receives.
So, you can always go join a cloud mining operation and get started earning your cryptocurrency this way.
You can funnel earnings from the faucets and games mentioned above into your cloud mining operation to temporarily increase your hash power and thus your overall earnings in that area.
It’s genius, but it takes some perseverance, consistency, and a little time. Hey, nothing is totally free and I am providing you here with a way to set up a passive income in the cryptocurrency world.
What is Cryptocurrency Bizop?
There are a growing number of cryptocurrency bizops and multi level businesses that are cropping up, some legit and some ponzi. I may expand on this stub in the future but I wanted to at least put something in this section as a starter.
Recommendations
What is cryptocurrency if not freedom to create another income and earning potential for yourself and your family?
I recommend creating accounts on the major exchanges, enable two-factor authentication to secure your accounts, use different passwords for each account, and use the wallets for the various cryptocurrencies to transfer and convert funds from one exchange to another.
Doing it this way, you will lessen your exposure if one exchange ever gets hacked because your cryptocurrency stash will be spread around. Also, you need multiple exchange accounts since not every exchange supports every altcoin. They all support Bitcoin, and more are supporting the popular ones like Ethereum and Litecoin, but if you want to speculate with the lesser altcoins like Doge, Ripple, and Stellar Lumens (and the like), then you will have to have multiple accounts. You also need to have a place to deposit your faucet and game winnings in order to them convert and funnel that into your cloud mining has power upgrades.
I give it all to you in this article you just read as well as my where to buy Bitcoin article (for the exchanges) so get to it!
So now, whenever someone asks you what is cryptocurrency and where to get and store it, you can point them to these articles on my blog. Share this out on your social networks to reach as many newbies as possible with the vision that I am spreading to get us all earning and diversifying in the cryptocurrency field.
Later, you can exchange some cryptocurrency earnings for fiat currency (regular money) and then buy hard currency like gold and silver, thus completing your personal monetary safety policy.
