Just as a disclaimer I am not a pro at crypto. I own some and am constantly learning as I go. This information is just that; information. If you want to add anything, feel free to pop into the comments. I am always ready to learn something new. Shannon
What is cryptocurrency?
What is cryptocurrency? I am sure you have probably heard this term before but let’s define it today. Cryptocurrency is a digital currency. The main one is Bitcoin. There are many kinds of cryptocurrency. The transactions of buying and selling these currencies happen on a blockchain. There are millions of users on the blockchain with computers linked in a peer-to-peer network. The “control” is distributed among all of the users within the network. This system is called a decentralized system. The blockchain gives a level of trust that a financial institution cannot give.
How is bitcoin produced?
Bitcoin is mined and produced by people on computers. There is a finite amount of bitcoins on the planet. This bitcoin and other cryptocurrencies are bought and sold through a blockchain.
Complex computer codes make crypto safe
Buying and selling cryptocurrency uses cryptography, Cryptography uses complex computer codes to transfer crypto. It is a secure method of protecting information, communications, and now, currency. Cryptography creates next-level protection and takes the fear out of owning digital currency.
A little bit about centralized authority and why it is so different from our current banking model
Transferring funds with cryptography is the opposite of our current structure of finance and banking. The current structure we use in banking is called centralized authority, where one person at the top, like a bank owner, makes all the decisions and has complete control over the information, communication or currency. When there is no one watching the person at the top, there is plenty of room for controlling the money that comes into the bank. This may lead to corruption and tampering. Blockchain doesn’t allow this to happen. This diagram below explains a bit better how the blockchain works.
The future is Crypto
Is cryptocurrency here to stay?
Although the buzz of bitcoin and other crypto is calming down a bit in the news, I believe it is here to stay for the long haul. We have noticed the ups and downs in the past few years and it’s no different than the volatility of other stocks, gold, silver or investments. The experts almost always say “hang on”.
Just hold on
Crypto is a digital asset that is not stopping or slowing down anytime soon. When my husband and I first purchased crypto, we understood that it was volatile and that holding onto it is the most important thing. Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. We can use it to buy and sell just like other forms of currency. This is why we love it.
As we watch fiat currency starting to nosedive because of forced inflation, the reckless printing of money (by our governments) and not having the gold standard to prop the money, we should be looking at alternative currencies for the future. Cryptocurrency is that alternative.
Fun summary of crypto
You probably are not a kid but the video below from Hey! Guess What is a fantastic summary of Crypto explained to kids. It is highly effective in making this subject a little more understandable for beginners. Check out the other informative videos they create on YouTube for kids. Fun stuff!
Types of Cryptocurrency
5 Popular Cryptocurrencies (in no particular order, although Bitcoin is top dog!)
Bitcoin – a digital currency created for use in peer-to-peer online transactions. Introduced in 2008 by a person or group using the name Satoshi Nakamoto, Bitcoin is the most prominent of a group of virtual currencies-money that exists mainly as computer code and has no central issuing authority. Source: Carter Dougherty
Bitcoin Cash – Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin. Bitcoin Cash is a spin-off or altcoin that was created in 2017. In November 2018, Bitcoin Cash split further into two cryptocurrencies: Bitcoin Cash and Bitcoin SV. Source: Wikipedia
Ethereum– Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether, or ETH. Ethereum can be used by anyone to create any secured digital technology they can think of. It has a token designed for use in the blockchain network, but it can also be used by participants as a method to pay for work done on the blockchain. Authors: Frankenfield, Anderson, Perez
Litecoin – Litecoin (LTC) is a peer-to-peer cryptocurrency that was set up by Charlie Lee (a former Google employee) in 2011. It is a fork of Bitcoin and shares many similarities with it. It is based on bitcoin’s original source code. Litecoin was designed to be used for cheaper transactions, and to be more efficient for everyday use. Source: Google
Ripple – (XRP) is a real-time gross settlement (RTGS) system, which is a specialist money transfer network, currency exchange and remittance network. Useful for transferring most other currencies without bank wait times. It was created by Ripple Labs and released in 2012.
Start investing in Crypto
Here’s how we have been purchasing our cryptocurrency since 2019
I have always chosen Bitbuy as my go-to for buying cryptocurrency as it is one of the easiest ways to buy and sell 25 different currencies quickly and painlessly (even on my cellphone). It is safe, secure and they are really knowledgeable about all things related to crypto.
How to Buy and Sell Bitcoin with Bitbuy
- Sign up for Bitbuy by creating an account, providing your email address and phone number, and confirming your identity.
- Fund your account to begin buying and selling your digital currency of choice. There are a couple of ways to insert Canadian dollars into your Bitbuy account; either Interac e-Transfer or with a bank wire.
- Once the funds have been deposited, choose which digital currency you want to purchase or sell by navigating to the “Express Trade” section of your account. The dollar value of the quantity of bitcoin (or any other digital currency) that you are purchasing or selling will appear in your “Transaction Summary” prior to completing the process.
You can now buy crypto with a credit card!
As a buyer of Bitcoin, I just got excited today when I received word that a new way to purchase our crypto became available and we can now buy BTC, ETH and USDC with our credit card! It was already easy but they are now making it even more convenient.
The future is crypto
So, there you have it! My very basic and simple explanation about cryptocurrency. Much of it can go over my head but after almost 5 years of learning, it is starting to resonate. I plan to do a future blog about crypto wallets and keeping your currency safe. We must protect all of our currency and crypto is no different.
Check out why bitcoin is the alternative
Well, friends, I guess this is all I can say about crypto today. As I keep learning, I will update my blogs. One thing is for sure. I love knowing that our financial portfolio contains gold, silver, cash, and now, cryptocurrency. The ups and downs are part of the journey. We shouldn’t be afraid of the fluctuations of crypto. It adjusts with the market and keeps moving along, ebbing and flowing. I recommend that you just hang on. It’s taking us to the future. Thanks for reading. Shannon
disclaimer: I am an affiliate marketer and some of my ads help support me but do not affect your purchases. Thanks for taking a look