There has been much talk in the past few years around the topic of cryptocurrency. However, the number of people who genuinely completely understand what it is about and how it works is still fairly small. Yet, the number of people who are keen to try and make money this way is growing every day. If you are one of them, then you might be keen to find out all that you can about cryptocurrency before getting started. Let’s look at some of the answers to some of the most common questions people have about cryptocurrency, so you can be more informed.
What Is Cryptocurrency?
So what is cryptocurrency, anyway? In simple terms, it is a form of digital currency which has no physical representation – no coins, no notes – but which can be used in the traditional way to purchase almost anything. It is a virtual exchange medium, and it uses cryptography to secure its transactions as well as possible. It is arguably the most secure form of currency ever devised in human history – and this alone is one good reason why people are so keen to invest in it in the recent past, and why it continues to grow.
How Do You Buy It?
Naturally, if you are seeking to join in with the crypto craze, you are going to be wondering how to actually go about buying it. There are actually several ways you can buy funds in a cryptocurrency. Let’s look at the most popular and original crypto coin, the Bitcoin, for an example. To buy bitcoin, the easiest way is to go to a site like https://bitit.io/buy/bitcoin-btc and simply purchase some with a credit or debit card, bank transfer or even a cash voucher. Alternatively, some cities and towns have crypto cash machines where you can trade other currencies for Bitcoin and other crypto coins.
What Is The Blockchain?
You can’t really read about Bitcoin for very long before you come across the word blockchain. But what is it? This is one of those things that sounds very complex and yet is actually quite straightforward, so it is worth looking into to help improve your understanding of cryptocurrency in general. The blockchain is a chain of blocks of data, each of which contains all of the data relating to the others, and a cryptographic hash – a kind of complex mathematical puzzle – for encoding it. This is the secret to why Bitcoin is such a reliably secure way of storing money.
How Much Is A Bitcoin Worth?
Of course, the nature of any currency is that it fluctuates over time, so we can’t give a solid answer to this, as it will be wrong by tomorrow. However, looking at the Bitcoin Price Index over the past 12 months, a single Bitcoin has risen from just under $11,000 to just under $12,000. Of course, you don’t have to buy a whole Bitcoin, so you don’t need that much money to get started.