To many new people who have just heard about Cryptocurrency, the concept looks complicated just like for many of us when we first got to know about it. There are even many who have known about it for sometime but haven't grasped the full understanding of it.
Cryptocurrency is simply digital money, the kind of money that exists electronically.
Bitcoin
Back in time when Cryptocurrency was only discussed in the shadows, the most common term you would here was Bitcoin(Bitcoin is the main digital currency in Cryptocurrency).
It was until the end of the year 2017 when Bitcoin climbed drastically and hit it's all time peak of $19,700 that everyone wanted in into Cryptocurrency. Bitcoin and Cryptocurrency in general, grabbed a lot of attention as everyone wanted to be part of the hype surrounding that sudden rise in the price.
But bitcoin is not alone, there are thousands of other digital currencies in Cryptocurrency. These are referred to as Alt Coins. Among them include Ethereum, DogeCoin, Cardano, Solana, etc as you'll see when you click here
Practicability
Transactions;
Today, more and more people are embracing cashless transactions. You don't have to meet another person to give him money you owe him/her or make a payment.
Here in Uganda, Africa we have what we call Mobile Money, where you just enter a code of *185# on your mobile phone and follow the steps of sending money to another person.
Now with Cryptocurrency, you can do the same and the experience is even much better. It is straight forward, there are no legalities when sending money to another person once you have he's address. On top of that there are no extra fees and it is instant. Which is unlike other centralized systems which have charges and taxes on every transaction.
Security;
The transactions done in Cryptocurrency and made safe through encryption using a technology called Blockchain technology(Will go into detail on this in the near future). But what you have to know is the information about the transaction is between the sender and receiver. No one else can get the chance to view details of the transaction or the account history.
This is unlike the Centralized systems like banks, mobile money (which I talked of earlier) where one's financial activity can get spied on and can be offered out to someone else when it is needed.
Investment opportunity;
There is no better reason for one to be involved in Cryptocurrency than a chance of making some money, especially for those of us in the LDC countries.
Just imagine you had invested in bitcoin a few years back when it was less than $1000. At the moment, the price is standing at $40,000. That would be a whooping $39000 in profit incase one had bought one Bitcoin. Life changing money which could do a lot no matter the country your in.
This is among the many ways you can earn in Cryptocurrency. You can as well get a job, click here and you'll see many well paying jobs listed in various fields. And there are still many sites with jobs looking for people to work with them.
This is just a bit of what Cryptocurrency is about to give you a general understanding of it. I'll be writing more about it in the next posts.
Thanks for reading.