What is Cryptocurrency? An Easy -To- Read Beginners Guide 2022

What is Cryptocurrency? An Easy -To- Read Beginners Guide 2021
What is Cryptocurrency? An Easy -To- Read Beginners Guide 2021

Okay. You’re reading this article because you’ve been hearing a lot about the word “Cryptocurrency” nowadays. You’ve heard that people are making money… That it’s the new trend and what not’s. Well, all that is true but if you simply decide to jump into the world of cryptocurrency without actually knowing anything about it. There’s a 98% chance that you’ll fail miserably.

You may also be reading this article because you’re already into cryptocurrency but you still wish to know more about the basics. Well, congratulations. You’re in the right place. So, now let’s head on to the beginning.

What is Cryptocurrency?

Cryptocurrencies are simply money you can’t see. They are called “Digital tokens” ,meaning that they’re not physical coins or hard cash. They are digital coins that can be used over a secure network to send and receive payments without any Government control which is exactly why some Governments decide to impose a ban on it in some Countries. That was easy to get right? Well, I hope so.

Now, why exactly were they created? It’s simple really. They were created to allow P2P (Person-to-Person) transactions without the need for banks or any regulatory body.

Who Invented Cryptocurrency?

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The identity of the person who invented Cryptocurrency is still unknown as of today. The only thing is that it was released under an alias which is “Satoshi Nakamoto”. It has been rumored that the one who invented it was an Australian Academic, Craig Wright who claimed to be a 37 year old living in Japan but this assumption was debunked.

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How Many Cryptocurrencies exist and How much are they Worth?

According to CoinMarketCap, the total value of all Cryptocurrencies as at the 13th of April, 2021 was more than 2.2 Trillion USD and the total value of Bitcoin, the most popular and widely used digital token was over 1.2 Trillion USD which was a lot more than the 6000+ more cryptocurrencies in existence. Also, according to recent studies, the activity in Cryptocurrency markets has increased drastically very recently and the prices have skyrocketed.

The Top 10 Best Cryptocurrencies by Market Captitalization (Updated List)

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Now, here is an updated list of the best cryptocurrencies by Market Capitalization gotten fron CoinMarketCap.

  1. Bitcoin (BTC) – 1.2 Trillion USD
  2. Ethereum (ETH) – 263.4 Billion USD
  3. Binance Coin (BNB) – 87 Billion USD
  4. Ripple (XRP) – 81.8 Billion USD
  5. Tether USD – 45.4 Billion USD
  6. Cardano (ADA) – 44.7 Billion USD
  7. Polkadot (DOT) – 39.3 Billion USD
  8. Uniswap – 18.8 Billion USD
  9. Litecoin (LTC) – 18.1 Billion USD
  10. Stellar Lumens – 14.9 Billion USD

Should I get into Cryptocurrency or Not?

Well, only you can actually decide that. But, according to surveys, Investors have seen Cryptocurrency as more of speculations and not actually investments. Because unlike investments, you can’t predict how the market is going to move. It’s more like “Tomorrow”. There can be surprises. There can be an unexpected rising, an unexpected falling, there can be crashes too. So, most investors would advise you to stay clear of Cryptocurrency.

In fact, the Legendary Investor and one of the riches men in the world compared Cryptocurrencies to paper checks, he said; “It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”

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So, the question of whether you want to get into Cryptocurrency or not solely depends on YOU! But, you need to understand to never see it as a get-rich-quick scheme. You will most likely be disappointed.

How do I buy Cryptocurrency?

Well, to buy Cryptocurrencies, you’re going to need a wallet which is an online application that can hold your desired coins. The whole idea is that you transfer money into your wallet and then in exchange use that to get yourself whatever coins you desire.

Two of the most popular platforms for getting your Cryptocurrency very easily are Coinbase and Binance. But, Binance is preferrable as Coinbase currently doesn’t support some major countries.

For the detailed steps to buy Cryptocurrencies, I’ll be writing that in a new article. Please bear with me and turn on Notifications for the Website so that you’ll know immediately I post it.

Some Cryptocurrency Slangs you need to know

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  • FOMO – Fear of Missing Out
  • Shill – Someone purposely promoting something for their own benefit
  • FUD – Fear, uncertainty, and doubt
  • HODL – Hold on to dear life
  • Rekt – To suffer from losses on coins that have dipped
  • Mooning – This term is used when a coin is increasing rapidly in value
  • Whale – This refers to individuals who own more than 5% of a coin
  • Bagholder – Refers to someone holding a coin that has increased drastically in price

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Written by Abioye Shinaayomi

Hey there! I'm Abioye Shinaayomi, but you can call me Supreme Shizzy. I'm a Content Writer, and I love crafting cool articles on everything from Cryptocurrency 101 to Artificial Intelligence. You can catch my writing here on FaqonTech, and I also freelance for various websites. Cheers! 🚀

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