You are probably wondering what the world is raving about each time someone mentions bitcoins or ethereum or ripples. Sometimes, you might have had the cause just to keep quiet and observe how people are exchanging ideas on the next cryptocurrency they want to buy into and how fast they can get profit to help them invest in another.
Yes, they are the rave of the moment, and it is quite understandable that anyone would be naturally inquisitive to know what the fuss is about so here is a beginner’s guide made as simple as it can to give you a fair understanding of what the fuss is about and help make the right investment choice.
What are cryptocurrencies and how did it start?
Simply put, they are digital currencies. Protected by cryptography and used for even the most basic transactions, cryptocurrencies have been in existence for over a decade only enjoying more popularity in the year 2016 as bitcoins rose to heights never imagined.
With cryptocurrencies like Digicash and flooz failing after it was introduced in the 90’s, it was a no-brainer to see people react with faint interest when cryptocurrencies were re introduced sometime in 2009. The question now is how is the cryptocurrency of now different from what it was back then?
Back then, there was interference from third parties which led to several allegations of fraud by the initial cryptocurrency creators, parties were constantly disagreeing at every stage of the transactions, and there was a constant feeling of insecurity attached to buying these digital coins. In more recent times, however, the use of cryptography offers these currencies an extra coat of protection.
They are largely different from the currencies used in different countries and with the minimal or in fact zero interference from home governments; you can enjoy transactions using your cryptocurrencies with no fear.
Are there any advantages associated with the use of cryptocurrencies?
As a beginner, this question is very valid because you want to put your interest where your mouth is. Yes, there are countless benefits associated with the use of cryptocurrencies. There are no taxes placed on transactions carried out with the use of cryptocurrencies, and as stated earlier, they are not what they used to be in the 90’s.
Steadily, cryptocurrencies have become a way to invest your money and watch it yield rapidly while making more and even investing in others. The ability to be able to carry out transactions of a worldwide scale with this rate of efficiency and swiftness is another added advantage to the use of cryptocurrencies.
There are many strong cryptocurrencies available in the digital market today the most prominent being bitcoins, litecoin, ethereum, ripples and bitcoin cash. Just as it is with any other investment you may wish to make, you should make proper research and buy on recognized and regular platforms. This is just a beginner’s guide to help you get started. You are welcome to the world of digital currencies!