What is Cryptocurrency?

Cryptocurrency: Imagine having money in the bank and not being able to take it out at a cash machine, or spend it in shops. Now imagine that this moneys day to day value fluctuated at a rate that can never be guessed. Welcome to the world of cryptocurrency. Whilst the first sentence isn’t exactly true, it is true that only limited shops and online stores will currently accept cryptocurrency as payment. Cryptocurrencies like Bitcoin, Ethereum and Litecoin are becoming more common place. They are three of the main cryptocurrencies, or digital/virtual currencies, as they are also known.

Who can buy it?

YOU! Anyone can buy cryptocurrency, and there is a very easy way to do it. I have used a company called Coinbase for the last year and a half, without any problems. Coinbase does have a limited amount of cryptocurrency available to trade in, however is a very easy way to get involved. You can currently buy the following from Coinbase:

Bitcoin (BTC)
Bitcoin Cash (BCH)
Ethereum (ETH)
Ethereum Classic (ETC)
Litecoin (LTC)
Ox (ZRX)

The price varies for each of these, and you will never know if they are going to go up or down. Many have tried to predict an up or down trend. This is generally determined by the Bulls & the Bears. Bulls tend to push the price up, and Bears are much more cautious.

How does it move?

Transactions are generally stored on a block chain. Put simply, this is a ledger of all transactions completed within a specific cryptocurrency type, The network will validate a transaction, this then becomes confirmed. This then public ledger entry is locked to that chain and is available for everyone to see. The main difference is that you are generally completely anonymous on that ledger.

How is it made?

Minors use computers to work out very complex calculations. For each calculation that is completed successfully, cryptocurrency is awarded. This cryptocurrency will change depending on what the minor is mining. When these calculations are completed, the transactions become confirmed. Once a transaction is completed, the minor broadcasts this to the entire network. This transaction is then part of the block chain for ever. It is also replicated across all copies of the block chain.

Final thought

I personally wouldn’t go out of my way to invest heavily in something you don’t understand. Please do some research. I don’t want to say go for it, and please do not use this as financial advise in any way. DO YOUR OWN RESEARCH, as this is my interpretation of information on the technology out there. Money can be made? Yes. But I do think the days of investing small and making millions is very short lived (If not already over).

If you do decide to invest and use Coinbase, feel free to use my referral link, by CLICKING HERE. It will earn us both £7 or $10 when £76 or $100 is deposited. It does take a few days to appear sometimes.

This offer and any rates are correct at time of writing.

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