Crypto, Cryptocurrency or digital currency such as Bitcoin is an encrypted medium of exchange based on blockchain technology, used to regulate the generation of units or coins and verify the transfer of funds. It’s a peer to peer payment system that is independent of any government or central bank. Bitcoin has been called the digital Gold as it can be used as a store of wealth and can also be used as a method of payment, currently beyond the restriction and confiscation of governments. Cryptocurrencies are located on the Blockchain which is a digital ledger of all transactions and holdings in all wallets. The blockchain is located on hundreds or thousands of computers worldwide and therefore cryptocurrency is not located in any specific country, it is everywhere and nowhere specifically.
✎ Glossary of terms used in crypto
Cryptocurrency is a relatively new technology and as with all financial investments or speculations, you should not ‘risk’ more than you are prepared to lose. The total Cryptocurrency market cap is now approx. $300 billion which is still peanuts when compared to other financial markets and therefore prices are highly volatile. For perspective here are some approximate figures from between 2014 – 2016, Global stock markets market cap $77 Trillion, Global bonds market cap $100 Trillion, Global derivatives market cap $1.2 Quadrillion! Some say these markets are being manipulated by central banks and are due a massive correction and/or a total global financial crash, which is why I am moving some money into Cryptocurrency. Disclaimer
I’m sure you’ve heard plenty of people insisting Crypto is in a bubble, Why not judge that for yourself – World Markets Visualized
Cryptocurrency of any value can be transferred peer to peer, at any time to anyone, almost instantly at almost no cost. This is why big banks and governments generally do not like the idea and why you will often hear stories on mainstream media about digital currencies being used by terrorists or drug dealers because it is anonymous and therefore ideal for use in illegal trades and money laundering. The fact of the matter is, most digital currencies are not anonymous as such, all transactions can actually be traced via the blockchain and the blockchain cannot be deleted or altered. There are a few cryptocurrencies that are more private than Bitcoin but we’ll cover some of those elsewhere on the site.
Before you start thinking the price of Cryptocurrency is too high and you don’t have the spare money to purchase say, 1 Bitcoin which is currently valued at approx:
Don’t worry, Bitcoin is divisible by 100,000,000 these are called Satoshi. You can start buying crypto with as little or as much fiat money as fits your budget, you simply enter the amount of your currency you want to exchange and you will receive the equivalent amount of your chosen crypto.
Total crypto marketcap
- Market Cap: £412.27 B
- 24h Vol: £53.43 B
- BTC Dominance: 61.24%
Watch some videos (Click here) and learn the basics about a few cryptocurrencies to get you started.