It's safe to say we're in the best time of our lives with all the fuzz about cryptocurrencies and new projects adopting this mind-blowing ideology. Before we delve deep into that, it is my utmost desire to help new users on Leofinance get a grip of Bitcoin together with blockchain and its companions.
What is Cryptocurrency
Basically, cryptocurrency is a digital currency in accordance with advanced mathematical backlogs that utilizes cryptography for speed, security, and combating counterfeit in the long run.
Breakdown of some complicated names
Algorithm - a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer src.
Currency - Money/fiat used as a means of exchange and paying for goods and services.
Cryptography - a system of writing or solving codes, creating, or storing data.
A more simple definition of cryptocurrency
Cryptocurrencies are virtual currencies that are strictly secured by cryptography. The fact that they are secured by cryptography makes it ALMOST impossible to hack, counterfeit or double-spend
Crucial points to note about cryptocurrencies
They are decentralized: Cryptocurrencies aren't controlled by any third party or middlemen, their decentralized nature makes it easy to be used globally. They circulate across a network made up of nodes.
They use a distributed Ledger: All cryptocurrency transactions are stored on a global ledger. This basically means the records are stored in numerous places at once.
They are digital: Cryptocurrencies could be seen as
Internet Moneythis is due to their digitalized nature. In another word, they have no physical form.
In my next post, I'll be defining what Blockchain is as well as its benefits.
Disclaimer: Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors. Before deciding to trade cryptocurrency you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from an independent financial advisor. ICO's, IEO's, STO's and any other form of the offering will not guarantee a return on your investment. Since