Cryptocurrency: Simple Explanation


Haven’t heard of Cryptocurrency? It is a form of digital or virtual currencies that you can only use online to transfer funds. Online traders prefer to use this kind of currency because their identity is hidden. Cryptocurrency  wallets such as Blockchain give you an address that composes of numbers and letters to represent your account. Here is an example of an address where the second person will send his payment to: 147QDHEfn1B5mVmPWYG9dQeZuwbbc8jNz6 This is my Bitcoin address. It is hard to remember, right? What I do is I always copy and paste it whenever I need it.

Who originated Cryptocurrency?

The first and the top cryptocurrency on the web and in the market is Bitcoin.  It was invented by Satoshi Nakamoto in 2008. No one really knows if it’s his real name or just a code name he used to hide his identity. Since the first cryptocurrency, numerous cryptocurrencies have been created.


How do you acquire cryptocurrencies ?

Cryptocurrencies are only used online and do not represent real money.  You can’t go to your bank to ask the teller to change your dollar to Bitcoin because they do not have that kind of currency. To acquire cryptocurrencies, you can either:

1. Exchange your real money to your preferred cryptocurrency through Crypocurrency Exchanger online.

2. Get free cryptocurrency through faucets. Faucets are called to the websites which are offering free cryptocurrency by typing captchas. You can always go back at least 30 minutes to the sites to get funds. Just a reminder, faucets are only giving you $0.0001 – $0.000001 in real money.

3. Find a company that uses cryptocurrencies as their mode of payment.

4. Lastly, Mining. People install a special software  that is used to mine a certain cryptocurrency.


Cryptocurrencies as illegal?

Some say Cryptocurrencies are actually illegal because people must not have the power to generate money on their own and mining is the main source why cryptocurrencies exist. It is against the law and therefore should be stopped.  But how can government stop this kind of transaction if there are companies already accepting payments online this way? Well, some countries and companies stand firm not to accept this digital money.


Cryptocurrencies as investment

Like I have shown above, I have a Bitcoin address, meaning I also am a cryptocurrency user. So what? Did you know that Bitcoin’s value is increasing? Of course Bitcoin’s value in 2008 was only $0.00 but as of February 2015, the value is already $218.  So if I have 1Btc in 2008 and still have it today, that $0.00 will be $218. Woooow! Right? It’s like you’re investing. In 2013, when I started using Bitcoin (btc), the price per 1btc is only $138 and now it soared to $218. For the years to come, to one knows if it still valuable or not.


Most Popular Cryptocurrencies

There are over 500 cryptocurrencies in the market, but these 5 stand out the most.

1. Bitcoin

2. Litecoin

3. Dogecoin

4. Namcoin

5. Mastercoin


Did you find Cryptocurrency interesting? You may give your ideas below.


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