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What is Cryptocurrency?

Cryptocurrency is a form of digital money that is decentralised and based on blockchain
technology.

The peer-to-peer feature of cryptocurrencies is a fundamental innovation, as it allows users
to send and receive money without relying on a third party such as a bank or payment
processor (e.g. Visa & Mastercard).

Chris Thomas

Did you know?

Bitcoin’s creator’s identity is unknown. Satoshi Nakamoto is a pseudonym used by a man, a woman, or a group of people. In October 2008, Satoshi Nakamoto released the Bitcoin whitepaper. Then, in April 2011, Satoshi announced that they had “moved on to other things“ after years of being active on online forums with early Bitcoin supporters.

Satoshi’s final post is still there to this day.

What is Ethereum?

Ethereum is a decentralised, open-source computer platform. To synchronise and store changes in state, it use blockchain technology. Ether is Ethereum’s native cryptocurrency. It is necessary for Ethereum to function. In the same way that bitcoin is to bitcoin. ETH is the ticker sign for ether. Vitalik Buterin, a computer programmer, published Ethereum’s whitepaper in November 2013. The first Ethereum block was mined in July 2015, after being constructed by Buterin and other developers.

1
What is Bitcoin?

Bitcoin is the most well-known and widely-used cryptocurrency on the planet. It is a necessary component of the Bitcoin blockchain network. The network would crash if the bitcoin cryptocurrency was withdrawn from Bitcoin. Bitcoin is commonly referred to by the symbol, BTC, by investors and traders.

People use bitcoin to store and transport value among other Bitcoin network participants, regardless of their location. There will never be more than 21 million bitcoins issued in order to ensure scarcity. In the year 2140, the final bitcoin is projected to be mined. (The process of solving math puzzles is known as cryptocurrency mining.)

2
What is blockchain?

A Blockchain is a type of distributed ledger technology. A distributed ledger is a database that is maintained by numerous people instead of just one. The data stored in blockchains is organised into 'blocks.' Cryptographic hashes are used to connect blocks. This results in a block 'chain.'

The data stored in blocks is immutable since they are organised in a precise way. (The term 'immutable' refers to anything that cannot be changed.)

3
How to invest in crypto?

The most simplified way to invest into crypto currency is through a Centralised exchange. The exchanges act as a third party who oversee transactions and provide customer confidence. There are many large centralised exchanges around the globe offering an easy way for new users to enter the cryptocurrency field with a varied amount of different cryptocurrencies they offer to invest into.

As you progress your understanding, you can venture into decentralised exchanges and hold your own decentralised wallet. There is more risk associated when venturing into the decentralised space, so we recommend understanding the systems before getting too involved.

4
Which exchange is right for me?

The best exchange is a personal choice. Some offer a larger cryptocurrency coin selection, or better staking rewards, while their charges might be more expensive. For many finding an exchange that makes the process smooth sailing, comfortable and safe is a preference.

We can provide our opinions and feedback on the exchanges we use, and which might suit you best depending on where you live and what you’re looking to achieve.

5
Is it safe to invest in crypto?

One thing to be aware of in the cryptocurrency realm is that it is far more volatile than the traditional stock market. To put simply, it isn’t necessarily for the faint hearted. Returns vary significantly depending on your personal risk aversity. Staking is an option that can provide users a return of 3-10% in that cryptocurrency while higher risk options are available in staking or looking at new coins/cryptocurrencies in the marketplace.

6
Volatility

Crypto is a high risk investment. The volatility makes it a difficult investment for many whom want a controlled and slow growth over time.

Understanding the market, where you are investing and into what is critical when looking into the crypto space.

Unlike traditional investing, crypto currency is decentralised meaning there is opportunity for issues with regulatory bodies, hackers through cybersecurity. That being said, there are more hedge fund investor groups adding crypto to their portfolios – a positive sign for the industry.

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