For most people who heard about cryptocurrency, these are the few things that will come to their mind:
- It’s scam. Ponzi. So volatile.
- What is cryptocurrency?
- How to start? It looks so difficult.
- How to convert my fiat currency into crytocurrency?
- What are DeFi? CEX? APR? APY? Staking? Lending? Farming?
- What are hot/cold wallet?
- Proof of Stake? Proof of Work?
In this site, I will cover the basics of cryptocurrency in the most concise manner to get everyone onboard of cryptocurrency. Most people won’t be interested in the technical details of crypto. People want to know how to buy Google/Microsoft/Apple shares after reading and learning more about their financial statements, products, vision, etc but not the technicality of what is the programming codes behind their Google Drive/Keep/Gmail etc
This is the first post to cover some some basic of Cryptocurrency:
To put it in the most layman term,
Cryptocurrency is a digital currency that can circulate without the need for a central monetary authority such as a government or bank as the middle party – peer to peer transaction.
Individual coin ownership records are stored in a digital ledger which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
Hence, if you own cryptocurrency, you don’t own anything physical. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party. This is a common misconception that many people have.
Ok, for those interested in the more technical portion, can just Google and find out online easily. Let’s cut the technical part and go straight to the point. How to buy Cryptocurrency, trade and earn from it?
- Open a Centralised exchange (CEX) account, example Gemini, FTX, Crypto.com.
- Transfer fiat currency from your bank to CEX.
- Do research on what type of coins are available and what coins you want to buy etc.
- Buy cryptocurrency using your transferred fiat.
- Either keep the cryptocurrency in CEX and earn some extra money by lending, crypto earn, staking etc in CEX or send the cryptocurrency to a digital wallet such as Metamask for farming/staking/lending/trading/collateral etc in various DeFi site.
Some of the terms above are confusing/new to you above. Not to worry. I will slowly cover in my future posts.
Lastly, most Crypto coins are NOT Ponzi. It’s the next new world!