After creating a Steemit account, and posting my first actual article on this website about Litecoin, one of the many digital currencies available, I did get a couple of request and questions about where to begin and how to obtain these crypto-coins, but I think the first question should be is why should a person obtain cryptocurrency? Is it hype? or is it just a small fade that is not going to be around in the months, days, or years ahead?
To begin, we must wonder what is a cryptocurrency?
A cryptocurrency is a digital currency that only exists in the digital world. Look at Steem dollars. We use Steem dollars throughout this website, and these Steem dollars only exists on this website, and they are not physical coin, or paper notes. Therefore, Steem dollars is one of the many digital currencies available to you, already. This is how it goes for every digital currency available.
Another thing that makes the coins different from each other is the availability these coins are available for you. This is why bitcoin, litecoin, and ethereum, aka the top 5, are fighting to expand as soon as they can because the more available these coins are to the mainstream market, then the higher the price of the coins will be, as these coins will be easier to obtain, trade, buy, sell, etc., but the growth among any digital currency is good for the entire crypto sector as it will bring more notice to a vast majority of new investors and coin users.
Why should someone purchase a cryptocurrency?
Crytocurrencies share the same characteristics with 'real' currency. They both have a value, but the difference is that 'real' currency is functioning based on a supply and demand situation. One way that the government builds on the supply and demand for 'real' currency is by issuing taxes and demanding the taxes to be paid in full. Another way to create money, The government has allowed banks to use a fractional reserve banking system. If the bank has $100 in cash deposits from their customers, then they can issue a loan of up to $1,000. This $1,000 of new money was just created once the loan is approved. When the loan is paid back in full, that new money that was once created, has now disappeared from the system.
Sometimes when new currency enters new markets such as cryptocurrency, governments will restrict the alternative currency to protect their own money, because the governments of these areas need to protect their supply, and to keep intact their supply and demand for their own currency. This is one reason why bitcoin is banned in Hawaii.
For the majority of us not living in Hawaii, we can jump onto these cryptocurrencies. One reason a person may acquire cyprocurrencies is because there is already a value on these currencies. The supply is limited, Bitcoin for example is limited to 21 million and Litecoin is limited to 84 million and to figure that out you would need to understand blockchain and mining, but that can be saved for another article. The demand for Litecoin and Bitcoin exits because they cannot be devalued by any bank, or government institutions. This is good because compared to 'real' currency the price of a dollar can be devalued or increased at any given time.
When the value of 'real' currency drops then it means the we are purchasing less things we may want, thus making the citizen poorer. One reason that government drops the value of real currency is because when the 'real' currency drops, then the value of our products drop, which makes our export fees drop as well, and its a chain reaction. On the other side, it makes it harder for citizens to purchase things, pay back their loans that was created by thin air, and purchase any services that they may need. The U.S. economy is fueled by debt, so if its harder to pay off debt, then the economy starts to go into a recession as less money is circulating, and this just doesn't happen only in the U.S. but it happens worldwide.
This increase the demand for cryptocurrency because it is more stable, as currencies worldwide become more devalued, you can shift your money into cryptocurrencies and will not have to worry about purchasing power rising or declining.
Another advantage is that you can easily transfer money from one account to another account very easy, and in a matter of minutes no matter where you are in the world, all you need is an internet or mobile connection.
With the new report about the US government making it easier to purchase USDT on the litecoin network this is one step forward towards a worldwide digital phenomenon. Who knows what the future will bring, but so far the future is looking good.
Which cryptocurrency should I purchase?
As of this writing, there are 919 coins available. You can find them all here: https://coinmarketcap.com/all/views/all/
Once I reviewed that site, I would research the ones that stand out to me, research the coin, and then ask myself where do I see that coin going 1 - 10+ years from now.
Once you figure that out usually the website of that coin will tell you how and where to purchase or obtain their coins.
My suggestion is to try to get a coin that is available on multiple platforms, or one that has it easy to access wherever you want or easy to transfer from one account to another.
Once you find that, it is VERY important to stay up to date on news about that coin because the coin is very volatile, its traded globally and what's happening in china can effect the United States, and vice versa. Laws are always changing, and the support is always changing, so it is very important to stay up to date.
You may be scared, but there are so many people, millions in fact using digital coins already. Heck, you and I are already using it on Steem, so your feet is already wet, but its up to you when you want to jump into that pool. It is a very volatile and uncertainty, but if you let fear consume you, then you will never reap the rewards that may come.
Goodluck!