Cryptocurrency Guide for Dummies - Somewhere To

Cryptocurrency Guide for Dummies


You’ve probably heard the buzz online and in the media these days surrounding cryptocurrencies and how they have begun to take off into the stratosphere to the point that people are making huge returns on what can be small, minor investments. With the rise of cryptocurrencies still gaining speed, now is a great time to start thinking about how you can get in on the action by buying Bitcoin, Ethereum, Ripple or other currencies. To date, there are literally thousands of different types of currencies with the aforementioned being the top and most popular three.

If this sounds like something you want to get in on, here is an absolute beginner’s quick guide to getting in on this rising currency exchange.

What Is Cryptocurrency?

Cryptocurrencies are a newer tech based way of sending encrypted payments electronically through a blockchain type system which allows for anonymity and increased safety in payment for goods and services. You purchase the currency, which is essentially a type of coded file and store it in an online wallet. The benefit to cryptocurrencies is the fact that they are operated independently from centralised banks. This as initially the plan for this form of money transfer – essentially giving the ‘power to the people’ so to speak.

How Do I Buy It?

Buying Cryptocurrencies is easier than you might think. Most of the trading takes place in exchanges. Think of it as a giant digital stock exchange like on Wall Street in New York. On these exchanges you can buy, sell and trade your currencies using avenues such as PayPal or bank transfers. Essentially you send the money through to the person from whom you’re purchasing the currency and then they send you the currency. On exchanges you can select your seller of the currency and then work with them to buy it. Often sellers may have terms and conditions you need to meet – some may request to see photo ID but it’s just a formality and verifies you as a buyer so you can get faster sales and purchases in the future. Many exchanges will hold your money and the currency in escrow until both parties have “sent” their end of the agreement, and then everything is released to the appropriate person.

Check out Local Bitcoins and Coinbase as two good exchanges to buy and sell. Both are user friendly and easy to navigate and manage.

What Are The Benefits?

The benefits of cryptocurrency include safety of payments electronically due to the heavy encryption involved in the use of the currency itself. You can also remain anonymous if you wish when using currencies of this nature, which is becoming more and more valued these days. Not only this, but your cryptocurrency remains safe in an online wallet often with multi level safety and security and is more stable than putting it in some banks, with no charges and no problems removing your currency when you want to.

So there you have a bit of a guide in how to start with cryptocurrency and what it is exactly.