A Quick Overview of Some Cryptocurrency Basics
Some of you may have witnessed a 20-something co-worker quit their job earlier this year because of all money they made from cryptocurrency. Now, it seems like everywhere you go you keep hearing conversations about blockchain technology.
These days it seems like everyone has an opinion about cryptocurrency ranging from your Uber driver all the way to your grandmother. You might’ve also recently seen a cryptocurrency company as a guest on the Ellen DeGeneres show.
Cryptocurrency is quickly penetrating the mainstream market worldwide, and it’s not going away anytime soon.
Your current sentiment of cryptocurrency aligns with one of these three views:
- You’re completely out of it (A)
- You’re eagerly waiting for the right moment to invest in it (B)
- You’ve already started investing in cryptocurrencies (C)
If you are either B or C, you will most likely enjoy the rest of this post.
If you’re A…, You were warned. : – )
Here are 4 Basic Things Everyone Should Know About Cryptocurrency
1.) Bitcoin’s Meteoric Rise in 2017
The cryptocurrency market cap had a record month in December 2017. Bitcoin options and futures contracts went live on the CBOE and CME that month.
It was an especially pivotal moment for “hodlers” (aka long-term investors in cryptocurrency) because the world’s largest derivatives market legitimized an emerging sector worldwide that many industry outsiders never dreamed would happen.
2.) There are Over 500 Cryptocurrency Exchanges*
If you’re excited about the market and want to buy into a cryptocurrency right away, you’re probably wondering:
- Where do I go to start trading them? – You need to register on an exchange. This is a marketplace where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional fiat currency.
- Is there only one cryptocurrency exchange? – No there are many exchanges worldwide.
- If there is more than one exchange? How many are there? – 500 worldwide and counting…
3.) How Many Cryptocurrencies are on the Exchanges?
There are approximately 1624 cryptocurrencies and approximately 500 exchanges worldwide. Some well-known tokens are Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). If you come from a traditional security trading background, seeing multiple exchanges trading the same token simultaneously at different prices seems very odd at first.
If you are not even familiar with the traditional stock market and want to participate in the cryptomarket place, focus on one thing at a time. The most important thing is registering with an exchange that allows you to trade from your country of origin legally.
4.) What’s in a Cryptocurrency Wallet? —(Technically Nothing)*
Once you’re officially registered on an exchange, you will most likely have the option to load your native fiat currency onto the exchange to purchase tokens. When you purchase a token, you receive a unique cryptocurrency wallet assigned to hold your tokens.
Wallets are essentially your bank account for your cryptocurrency tokens, i.e., Bitcoin (BTC). Every wallet has a unique public and private key assigned to it. If a user misplaces or loses their keys, then the records of their past transactions are gone forever, and the tokens are gone forever.
An interesting fact about the digital wallets is that they never actually have anything inside them. Tokens don’t exist in any physical form. The only thing that exists are the records of past transactions stored on the blockchain.
The most exciting thing about the cryptocurrency space is the consistent growth and expansion year over year. The original intent of blockchain technology was to create a decentralized transparent peer-to-peer digital currency transmission protocol. With every new currency and exchange that is developed off of the blockchain principles, the more streamlined the technology becomes.
If you enjoyed learning some of the basic principles of cryptocurrency, please check our blog as we launch https://hybridblock.io/ the worlds most robust cryptocurrency eco system