You’ve probably heard a thing or two about cryptocurrency, but like most people, you still don’t understand what it is. So, let’s set things straight. While the technology behind cryptocurrency is quite difficult to understand if you are not into tech, you don’t really have to bother about it at all. What you need to know is what a cryptocurrency is for, and how it works as an asset or investment.
Cryptocurrency is a digital asset used to send and receive payments online. It stores and verifies transactions using blockchain technology. Blockchain technology works as an online ledger where all transactions are saved. With that said, there’s no human intervention when it comes to the record-keeping of these transactions. Industry experts believe that this feature makes cryptocurrencies generally safe and secure from fraud.
Today, there are about 7,000 cryptocurrencies that are distributed in the industry. Bitcoin, the very first cryptocurrency, remains to be the most popular one and is also traded the most. On the other hand, Altcoins is a collective term used for other cryptocurrencies that compete with Bitcoin in value and popularity. Ethereum, Litecoin, Peercoin, Namecoin, and Cardano are some well-known altcoins. Lastly, you can store your cryptocurrency coins in wallets that are called crypto wallets. Users can also make crypto transactions through these wallets.
The Buzz About Cryptocurrency
There are several things about cryptocurrencies that makes them appealing to newbies, tech enthusiasts, investors, and traders. These includes:
- Direct Transactions. Cryptocurrency transactions are done through a peer-to-peer networking structure. Essentially, it eliminates the ‘middleman’ as it links all parties in a straightforward transaction.
- Greater Autonomy in Transferring Assets. Cryptocurrency holders maintain full control of their investments and special contracts can specify when such transactions could take place.
- More Confidential Transactions. Coin holders enjoy semi-anonymous transactions by only transmitting the coins or value to a recipient, as opposed to traditional banks that usually require personal documents and transaction history.
- Lower Transaction Fees. Data miners who generate Bitcoin and other cryptocurrencies are being paid by the network so transaction fees do not apply. But this doesn’t mean it’s entirely free as there are also certain fees among third-party services that are sought to maintain a crypto wallet.
- Fast and Easy Access. The use of the internet enables anyone to engage in cryptocurrency trade, as long as they have a stable data connection and some knowledge on how cryptocurrency works.
- Easy To Trade. The peer-to-peer network allows transactions to take place across borders. Since it is not regulated by banks or governments, cryptocurrencies are generally not subject to taxes and transaction charges.
- Individual Ownership. Bitcoin and cryptocurrency users enjoy sole ownership of their digital assets unless a third-party tool is allowed to manage it through a digital wallet. This gives greater control and security among traders and investors.
- Strong Security. The use of encryption in transactions make cryptocurrency holdings and trading secure. The use of blockchain technology also ensures that the records cannot be easily tampered with by fraudsters.
So, now that you understand the reasons behind the hype and interest in cryptocurrencies, it is time to know how it is traded. It is more exciting and fulfilling if you join in on the crypto game and start trading or investing too.
Cryptocurrencies can be traded with each other or with fiat currency such as the US Dollar, Euro, or Japanese Yen. This can be safely done through online platforms called cryptocurrency exchanges. These exchanges are where all the hype takes place since it involves high stakes and some risks.
The cryptocurrency market is notorious for being highly volatile, but this is why high-risk traders and investors are attracted to them. Prices can rise and fall within the day, and this gives plenty of opportunities to buy coins at a very low price then sell them at high prices within just a day. Aside from potentially high return rates, the market is also available 24/7 with no centralized authority, making trading straightforward between its participants.
Cryptocurrency trading can work for newbies and experts alike, and it is intense and rewarding at the same time. However, like any kind of investment, there are risks in these exchanges and one needs to have a strategy in place to avoid common mistakes that can lead to huge losses.
How to Get Free Coins
If you now have a good grasp of how cryptocurrencies and exchanges work, you can now explore the crypto industry and try your hand at investing or trading. Bitcoin is the most dominant of all cryptocurrencies and investing in it can be very beneficial. It is the first crypto coin ever made, and its value has reached as high as $20,000 already.
Out of all the other cryptocurrencies, Bitcoin is deemed as the safest one because it is now past its highly volatile stage. So, if you are interested to get started with cryptocurrencies—especially Bitcoin—you can do so by obtaining some free coins first. Here are some ways to do that:
- Opening an online wallet and using coins to pay for online purchases can give you cashback incentives in the form of Bitcoins
- Sign up with a reputable crypto exchange and get free welcome coins
- Crypto Faucets that give a fraction of a Bitcoin in exchange for completing mini tasks such as solving captcha, playing games, or watching advertisements
- Hard fork where coins split up and result into new cryptocurrencies
- Bonuses received from being an affiliate marketer
Yes, there are free Bitcoins out there. All you need to do is exert effort to accomplish simple tasks, and you will be rewarded with Bitcoins. Some of these could come as instant bonuses or cashbacks when you sign up for crypto platforms, transact, or make purchases online.
The hype that surrounds cryptocurrency stems from its distinct characteristics to provide fast and direct cashless transactions over a secure network. The decentralized nature of cryptocurrency lowers transaction fees, enables international trade, and easy access to digital assets.
However, cryptocurrencies are not just for spending as these have become lucrative investments over time. Obtaining cryptocurrency gets more intense when one enters the crypto game of exchanges to buy and sell coins in a volatile and liquid environment.
Being able to predict how coins fare in the market can bring substantial gains and it may also provide free Bitcoins as a bonus. All these make cryptocurrency an interesting and rewarding feat in the world of tech and finance.