Cryptocurrency for Beginners

This article explains the basics of cryptocurrency in an easy to understand format for anyone who is new to cryptocurrency

Killer Whale Crypto - Jul 20, 2021

The last year has brought on a whole new influx of interested investors into the cryptocurrency market. While we hear about individuals who made millions from cryptocurrency, there are many people who are struggling to grasp what exactly cryptocurrency is. In this piece, we will deep-dive into some of the terminology, as well as some cryptocurrency facts!

What exactly is cryptocurrency and where did it come from? Cryptocurrency has a clear history, but it is often shrouded in mystery. Although digital currency has a history going back as far as 1983, one of the most notable and recognizable names in cryptocurrency, Bitcoin, was created in 2009 by mysterious coder, or coders, Satoshi Nakamoto. While Nakamoto is not the first person or group of people in the cryptocurrency history books, Satoshi Nakamoto is undoubtably the most notable of the cryptocurrency developers.

Cryptocurrency had a few simple goals in its infancy: create a decentralized payment that could be used internationally, that no central financial institution or government had any say over. It was digital currency by the people, for the people. What originally caused the creation of cryptocurrency like Bitcoin, Ethereum and many others was the huge economic crisis of 2008. People needed a new way to make money and with the uncontrollable nature of the economy, people wanted to take back some semblance of power when it came to their money. While you are starting to see everything from meme coins like Dogecoin, to brilliantly designed cryptocurrencies, backed by equally innovative projects, such as Algorand (ALGO), or Theta (THETA). It is refreshing to know the history of this electronic digital cash is rooted in the common man’s story.

“Why should I care about cryptocurrency at all? it's just a fad.” “It's a Ponzi Scheme, it is a stick job,” and so on and so forth. These are some of the most common misconceptions regarding cryptocurrency. While there are no shortage of conspiracies, ignorance, and misinformation out there, cryptocurrency is not going away anytime soon.

The two heaviest hitters are Bitcoin, and Ethereum. Both Bitcoin and Ethereum are unique – first of a kind – tokens, which both offer different, yet equally valuable features. These two Cryptocurrencies also hold a substantially larger market cap than any other individual cryptocurrency. They are separated by what Warren Buffet refers to as an “economic mote”; meaning there is a substantial gap in their value, compared to the rest of the market.

The remainder of the market is made up of alternate coins, or alt coins for short. There are billions of dollars flowing into the cryptocurrency market via altcoins. As of March 2021, there are more than 9,000 different cryptocurrencies, with altcoins accounting for over 40% of the total cryptocurrency market. Most of these altcoins share a similar blueprint to Bitcoin or Ethereum, although many altcoins use unique mechanisms to produce blocks or validate transactions. Some altcoins however are vastly different from the rest, implementing, ideocratic, technologically advanced and beautiful methods of action. Nano for example, does not even have a blockchain! It uses Directed Acyclic Graph (DAG) technology to do what the blockchain does, in a fraction of the time, while using barely any anergy and at zero cost to the user. If you would like to learn more about Nano, you can read all about it here !

There are many ways one can divide cryptocurrencies into subcategories. The consensus method that a coin uses to verify transactions is usually one of the first distinctions one would want to look at to determine what makes one coin different from another. The two most common consensus methods are Proof-of-Work and Proof-of-Stake. Proof-of-Work (PoW) coins, where blocks are validated by miners. As an example, Bitcoin is a PoW cryptocurrency. Proof-of-Stake (PoS) cryptocurrencies are similar to PoW cryptocurrencies but modified to de-incentivize hacker threats to the network. Cardano (ADA) is a fantastic example of a PoS coin.

Is it safe for investors to jump into the cryptocurrency game? Well, just like any other risk asset, there is no guarantee that it will not potentially bite you in the butt if you are not cartful. This is why it is so important to use safe trading practices, such as using Killer Whale signals and strategies. If you’re doing everything right, and listening to expert advice, like that which Killer Whale offers, cryptocurrency trading will prove itself to be a valuable tool, to improve your financial future. Cryptocurrency is constantly gaining popularity, because the results of those who trade cryptocurrency properly are so appealing!

It was not even 3 years ago that a 2018 study found about 40% of Americans had no interest in cryptocurrency, around 90 million people. Fast-forward, and now we have huge institutions like Goldman Sachs, Morgan Stanley and Fidelity jumping into cryptocurrency. Visa even launched a Bitcoin Rewards Credit Card, which allows cardholders to get 1.5% cash back on purchases that are converted to Bitcoin. If you feel like it may be too late to start investing, you may be delightfully proven wrong. And with more cryptocurrency coins being created, mined and popularized, there are now more options than ever. Cryptocurrency is an ever-expanding realm and, hopefully with some of the tips and facts covered in this article, you can head into the market with confidence.