Hi, I am John from Nigeria. In this post, I will explain the basics of cryptocurrency, which is a new form of digital money that is becoming more popular around the world. Cryptocurrency is different from traditional money because it is not issued or controlled by any central authority, such as a government or a bank. Instead, it is created and transferred by using cryptography, which is a method of securing and verifying information.
Cryptocurrency works on a technology called blockchain, which is a system of records that are stored on many computers across the world. Each record, or block, contains information about a transaction, such as the amount, the sender, and the receiver of the cryptocurrency. The blocks are linked together by a mathematical code, or hash, that ensures the integrity and validity of the data. No one can alter or delete the blocks once they are added to the blockchain, making it very transparent and secure.
There are many types of cryptocurrencies, but some of the most well-known are Bitcoin and Ether. Bitcoin was the first cryptocurrency, launched in 2009 by an anonymous person or group using the name Satoshi Nakamoto. Bitcoin is designed to be a form of payment that is independent of any intermediary or authority. Ether is the cryptocurrency of the Ethereum network, which is a platform that allows developers to create and run applications that use smart contracts, or self-executing agreements. Ether is used to pay for the services and resources on the Ethereum network.
Investing in cryptocurrency can be very risky, as the prices can fluctuate dramatically and unpredictably. The cryptocurrency market is also very new and unregulated, which means there are many uncertainties and challenges. Some of the risks include hacking, fraud, theft, technical glitches, and legal issues. Therefore, anyone who is interested in cryptocurrency should do their own research and be careful before investing.
I hope this post has helped you understand the basics of cryptocurrency. If you want to learn more, you can check out some of the sources I used for this post, such as NerdWallet, WealthFit, Business Insider, Britannica Money, Cryptocurrency Facts, and Investopedia. Thank you for reading and have a nice day!
https://www.nerdwallet.com/article/investing/cryptocurrency
https://wealthfit.com/articles/cryptocurrency-basics/
https://www.businessinsider.com/personal-finance/what-is-cryptocurrency
https://www.britannica.com/money/what-is-cryptocurrency
https://cryptocurrencyfacts.com/how-does-cryptocurrency-work-for-beginners/
https://www.investopedia.com/terms/c/cryptocurrency.asp