An Easy Guide to Cryptocurrency

An Easy Guide to Cryptocurrency

PoliticsJune 08, 2018

For many investing in Bitcoin and cryptocurrencies is still a minefield, so below is a simple guide that will hopefully whet your appetite to research more thoroughly for yourself. I firmly believe in the technology behind it although I do not claim to know as much as some, I am not expert, but if you take it one step at a time and don't invest in anything you do not understand then you won't go far wrong. 

Cryptocurrency is digital currency which does all of its trading and transfers online. It isn't just one thing as it shares certain properties with other financial instruments. 

How Can I Use It? 

Cryptocurrency can act in the same way as bullion acting as a reserve for long-term investments similar to gold or silver. 

You can pay for goods and services using cryptocurrency, and there are numerous businesses and services that accept this form of payment. The list of companies that did accept cryptocurrency was initially limited but as the currency became widely accepted so the list grew.  

This growth happened in much the same way as paying for goods and services using your mobile phone bill or pay as you go account did. Now if you want to play UK slots as an example, you can do so and use your phone to pay for those games. Making a payment using your mobile phone is another way of not having to give any banking or personal details to an online site making it far more safe and secure.

Cryptocurrencies can also be trades like stocks and shares with people buying and selling on the market as the value of the coin changes.

Bitcoin in the most well-known of the cryptocurrencies having received the most press coverage by a long shot. It is the leading coin by market cap, and the market cap is the total market value of a coin. If you want to check out all of the leading coins go to www.coinmarketcap.com

Although Bitcoin is probably the most famous there are actually hundreds of cryptocurrencies, some are gaining recognition whilst others are simple scams and a total waste of your time and money. 

The technology that is behind and drives cryptocurrencies is called the Blockchain, and it is this which verifies payments and as long as you read as much as you can in order to build up your understanding then make your first investment a small one you won't go far wrong. 

You can buy your cryptocurrency from specific websites to crypto-exchanges, and you can buy your currency using your debit or credit card or by making a bank transfer. As a rule of thumb remember to choose the payment method that has the lowest fees attached.