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Explain Crypto To Complete Beginners

Explain Crypto To COMPLETE Beginners

This will show you why you need to understand the technology if you want to understand it. Why understanding will take time. The cryptocurrency industry has been going through major changes for years now, so many people still have not really understood what it is, how it works, and what problems it faces. So, what can I do? Well, let me do my best to guide you. For those who haven't seen the video, here we go!

What do we need to know about cryptocurrencies and this industry?

The whole concept of cryptocurrency was conceived over 100 years ago, in 1956-by the British physicist John von Neumann as an electronic circuit board used by banks in their transactions. However, this invention used a small amount and limited the number of different types of coins out there at the time. In 2000, Bitcoin was invented, the first-ever "app" on the internet, created to solve the problem with bank transfers, where a person deposits his money into a bank account, then needs to pay the bank back using some cryptocurrency, which gets deposited by someone else. Then you can pay back that bank by using Bitcoin instead of cash. It became possible to sell and buy Bitcoins around 2000, but it took years before anyone was able to mine them, making them inaccessible until 2013 when Litecoin came onto the scene.

At this point, you could send bitcoin to anyone on earth using just your computer. That's a long way from the beginning when only 13 people were in the world mining BTC and all you needed was energy. After ALTCOIN came along, it became easier to sell bitcoins, but you had to use a special wallet or exchange to send bitcoin to someone. Not very convenient right? Since then, it seems like more and more people began to get interested in this idea that everybody knows about. But, did anyone really know how to make it? Let's answer the question. How did you learn about this? Well, many people would simply say, "I looked it up on Google." Well, yes, but only a few of those things make sense. Nowadays, it is easy to find out the exact information for almost any topic, however not much about cryptocurrencies.

If you are looking for something to teach in the school I advise you to spend some time reading books about the history of crypto because it helps to create solid knowledge. Here are two good books. From one of them, you can read a lot about crypto, such as Blockchain History, Cryptocurrency & Crypto Industry (2009) by Eric Schreier

The Big Idea: A Decentralized Culture Of Innovation By Charles Denton

What is blockchain?

Blockchain is basically a list of data blocks that are linked together, creating a chain and a ledger system. It cannot be changed, even without a backup. When people think of decentralization they usually think of decentralized ledgers where every individual can change the changes, thus making it safer, faster, and less costly. Think about Facebook, Twitter, eBay, Airbnb, etc. People don't want to change anything, so they are willing to contribute to the community and share their ideas and thoughts to improve this process and make it better. It sounds great. If you have a little bit more time, you can even build something similar. There are no limits, you can create applications yourself, build smart contracts, create a decentralized web, and even do business with other companies. Who needs to give approval or go against it? As mentioned earlier, nobody. You need to build a unique product with your own designs.

What are Stakers/Miners?

Stakers are groups of people or organizations who agree to lend Bitcoin or other cryptocurrencies to complete other users. They can also be called miners since each miner generates new coins with the help of others. Mining becomes easier when there are more participants but it requires long periods of work. Some people would prefer these coins for private accounts and exchanges as the market grows.

What is Mining?

This is when people will provide computing power for other users to speed up the operations of Bitcoin mining. Usually, mining will make the network work faster than it already does while avoiding mistakes and hacks. So, when you need Bitcoins, you just have to tell the miners who else wants your coins. These coins will become your rewards. Sometimes miners are referred to as miners or hackers or thieves in the media. We have heard stories about successful thefts. What about the costs? According to Wikipedia, each block produced by the miners takes 6 hours to complete and the total reward for producing a coin is 60 USD. On the other hand, if we mine our coins on a cloud platform, we get an instant reward by adding more CPU and memory, as opposed to the traditional method where the cost goes up by 30% every year. And even though bitcoin is considered "digital gold", people mine coins and spend them. Most people would rather earn bitcoins before buying a house or a car, so they mine their own coins and try to monetize those same by buying or selling them.

Why you need to understand this?

You need to understand these four elements of cryptocurrency:

Bitcoin to be precise - This is the most important thing to keep in mind since it is very easy to convert your existing or even used bitcoin into another currency. Just make sure that it is backed up completely for your security. It makes them more attractive to transfer to the rest of the world with zero fees at all as long as you can prove that you have enough Bitcoin. Don't forget that it is not anonymous anymore and anyone can see your transaction. So please use it wisely.

The price mechanism - This is a crucial part of Bitcoin. As soon as you have Bitcoins, you can buy them by trading between users, which is why most of these transactions happen on public exchanges. Although the government controls everything these days - Bitcoin could be worth only 1000$ in 2 years or less. Therefore, you usually don't want to risk losing everything in the middle of nowhere with no guarantees. So, don't sell your current BTC without asking for confirmation. Please use your email address for sending the coins, it will always keep the account secret. Once you have bought your BTC, you should start using it immediately. You can use BTC in daily purchases or for online auctions. Make sure to use a VPN (a virtual private network) when connecting to a server overseas. Trust us, not any third party.

HODLing your BTC = you’ve earned it

Bitcoin is extremely volatile and therefore, is highly dependent on what you decide to do. For example, you can hold it to buy a house and you can also sell it to buy a new smartphone. Your decision will affect its value greatly. Many times you might want to use it, but sometimes you have to wait a week before getting to see what happens. So, before investing you should research everything. Do you own some assets in the country where you live? Is there a stock market there? Do you run a business in some country, where the currency is stable? Can you buy some coins here? What about cross-border exchange? Are you scared of foreign currency conversion? Do you have any interest in blockchain or ICOs?

Would you invest in ICOs?

When you are ready to take the challenge, there are several open offers where you can get your hands on bitcoins. One of the most famous ones is CoinKeeper, so it's not an issue to reach that level to try the project. Another popular one is Coinbase, although, it is very pricey and slow at the moment. I recommend Bittu, a platform designed by experts and developed by high net worth, they guarantee that the project is safe to use and can be downloaded free of charge.

In the end of it, when it comes down to choosing the projects, choose the ones with strong teams behind them. Also, look at all the opportunities that they offer, check their profiles and if you have a certain area in mind, you can try doing it and maybe even try to develop their application, since a regular user, they won't see that much difference, just like normal websites.

How much cryptocurrency is there?

There are lots of sources and databases on the Internet; however, some of the biggest ones are the following ones:

Coinbase CoinGecko ETH-to-USD Currency

Crypto Trading Platform. HODLing, DailyFX, BitMEX

Bitcoin Miner and Wallet.

CryptoKeeper - A secure digital payments platform. HODL is one of the largest cryptocurrency sites in the world. Their main focus is on providing cryptocurrency investors with the easiest access to the fastest exchange, best cryptocurrency wallets, and the least technical information found anywhere. So, it's a perfect place for beginners who wants to start trading. Its developers have over 150 employees working on maintaining the site.

So, without any doubt, if you have a tiny bit of time, you can have fun and have a wide range of options. You can start playing around with it without having to worry about its future potential, make decisions and change directions without worrying about the size of that investment or the success or failure of that company. Maybe one day it'll be a global phenomenon. Even though, you know everything about cryptos, I still recommend understanding some basics. Especially when it comes to this technology that we are in front of.