A current buzzword used worldwide is Cryptocurrency. What is Cryptocurrency? It is a “digital currency” with no “Central Authority” in control of it. Although the pioneer of “digital currency” is Bitcoin, thousands of digital tokens are now available.
Let’s take a look at some key details to help you understand what “digital currency” means for you. Cryptocurrency is:
- Decentralized. No single entity has “Central Authority”. This means transactions with Crypto take place between consenting parties. All done without involvement from a bank or government! A digital ledger – Blockchain – tracks online transactions. This system helps prevent crypto tokens from being used more than once. For instance, the owner of the Crypto token cannot make a copy of the token and sell it.
- Digital Currency. A network of computers distributing online assets. The term “Cryptocurrency” comes from the encryption techniques. This provides a secure network. Bitcoin – created by Satoshi Nakamoto- is the first form of “digital currency”.
- Created through “Mining”. Miners use software to solve complex math problems. Solutions create “digital currency”. Keep in mind, you have control of mining. You can mine for “digital currency” when you’re not using your computer. Even if you’re using your computer, you can also mine Crypto. An additional thing to keep in mind is that computer speed affects mining. So, the faster your computer can come up with solutions, the more likely you are to earn “digital currency”. Also, the number of possible solutions increases as more “miners” join the network. Therefore, your computing power must be large. This will make it possible for you to be the “first miner” to come up with a solution.
- Reward Token: Used to reward users for confirming digital transactions. Exchange tokens for goods and services. Or, you can hold on to them and sell them when their value increases.
Additional terms that you might come across when working with Crypto are:
- Proof of Stake. Mining or validating digital transactions based on the number of coins owned. With “Proof of Stake”, Miners earn rewards based on the number of Crypto they stake. Therefore, the more coins that you own, the more mining power you have.
- Proof of Work. Mining or validating digital transactions using specialized software. The network rewards Miners with new Bitcoins for their services.
- Smart Contract. An agreement between participants in the form of a computer code. Blockchain is used to process these transactions which are sent automatically without the use of a third party.
With the fast pace of Blockchain Technology comes risk and reward. However, regulations are in place, globally, to protect consumers.
We recommend using one of the following wallets for verifying legitimacy of “digital currency”.
- TippingCircle. Supported by regulatory guidelines in the IPO (Initial Public Offering) and Crowd Funding Space. As a result, TippingCircle is rolling out new benefits and features. Some of which are:
- Vetting new coins.
- Allows users (via the TippingCircle Wallet) to easily participate in the newly vetted coin offerings.
- Allows easy access to view top Coins. Also makes it easy to buy, sell, and obtain coins within a single Wallet.
- Coinbase. Receive $10 in Bitcoin when you set up a Coinbase account. With this platform, you will be able to safely store your crypto in the “Coinbase Wallet”. You’ll also be able to trade several top tier crypto. Another benefit of Coinbase is the “Learn and Earn” program. You can:
- Receive $10 in Bitcoin when you invite someone to join Coinbase.
- Obtain daily rewards when you hold “Stablecoin Crypto” such as USDC or Dai.
- Get free crypto rewards for watching videos (<10 minutes long) and taking simple tests on the information covered in the videos. Also, you can earn rewards by learning about the different types of crypto. The more you learn, the more you earn!
- Vyvo. New addition to crypto market. With the “Vyvo Smart Chain Wallet”, you can easily transfer and exchange crypto tokens.
So, if you don’t have a “Crypto Wallet”, try one of the wallets listed above.