Cryptocurrencies are digital currencies that operate without banks or governments, using blockchain technology to secure and verify transactions. Here is a basic guide to understand how they work.
🪙 What are cryptocurrencies?
- Digital currencies that use cryptography to secure transactions.
- They do not exist physically, like bills or coins, and are not controlled by any central bank.
- Popular examples: Bitcoin ($BTC), Ethereum ($ETH), Ripple ($XRP), Solana ($Sol), among others.
🔗 What is blockchain?
- It is a blockchain that records all transactions publicly and securely.
- Each block contains information such as the amount, date, and involved addresses.
- It is decentralized, which means there is no single entity that controls it.
🛒 How to buy cryptocurrencies?
- Through exchanges like Binance, Coinbase, Kraken, etc.
- You can use credit cards, bank transfers, or even other cryptos.
🔐 How are they stored?
- In wallets (digital wallets):
- Each wallet has a private key that you should protect as if it were your bank password.
📈 How are they used?
- To invest (wait for the price to go up).
- To make payments in stores that accept them.
- For trading (buying and selling in the short term, like you do with TRU/USDT and MLN/USDT).
- Some cryptos allow smart contracts, like Ethereum, that execute actions automatically.
⚠️ Risks and considerations
- Volatility: prices can rise or fall quickly.
- Security: if you lose your private key, you lose your funds.
- Regulation: varies by country; in some places, it is restricted or unregulated.
- Scams: beware of false investment schemes or promises of guaranteed profits.
❕❕The most important thing to keep in mind when it comes to investing in cryptocurrencies is to never use money that you aren't willing to lose. The market is very volatile and just as you could double your investment in a day or a month, you could also lose it all in a matter of minutes❕❕