How To Buy or Sell Cryptocurrencies
In an age where the world is changing so incredibly fast, we are often found confronted with new tech and new ideas which seem lightyears past our current competancies. One such branch of finance, is cryptocurrencies. Often I hear people ask the question, how to buy or sell cryptocurrencies. First off the bat, I have to point out I am not a finacial advisor, a licensed accountant or broker, all the information I bring to you here will be sourced or from my personal experience and at no point am I recommending you buy or sell anything, that must be done with your own due diligence. Right, now the legalities are out of the way, lets dive into how to buy or sell cryptocurrencies. But first we have to answer the question, what IS a cryptocurrency and why do we need them?
How to Buy or Sell Cryptocurrencies
So to answer that question I have to first take you back to the beginning. What is currency? Through the ages since the earliest types of agriculture, people have bartered goods against goods. For an example, a village may have an abundance of chickens, where as another village may have an abundance of carrots. This for of barter would only of worked out correctly if the village with carrots, wanted chickens and in return the village with chickens wanted carrots. Otherwise, the deal would not be any good to either party. So for instance if Village chicken didn´t want carrots, but Village carrot wanted chickens, the carrots would not hold any value. The barter would be in massive favour to the chicken village, if indeed any barter were completed.
So lets fast forward to where humans started to find shiny things. Certain rocks and metals, when found, used to become very high bartering tools, as humans, like magpies, can´t resist something shiny. (Just ask the man playing on the fruit machine.)
Some of the most famous stones in the world used as currency are the Rai Stones, the ´original´ cryptocurrency. The very first ledger system currency, the rai stones, which were large circular stones, so big, that they were never moved from their original spot, even if sunk to the bottom of the sea, always held their value of ownership. Infact, in some cases, the rai stone are still used today.
HOW TO BUY OR SELL CRYPTOCURRENCIES
But I digress, lets fast forward again, to the point in history, to the minting of coins. In August 2021, archaelogists in Guanzhuang in Henan Province, China, found the oldest known mint, in the history of the planet. Somewhere around 640 BCE, this facility began striking coins, one of the first standardized forms of metal coinage.
A little later in Ancient Greece, Lydia’s King Alyattes minted the Lydian Stater in 600BCE, which is believed to be the first official currency. The fabled coins were made of electrum, which is a natural mixture of silver and gold. Stamped with pit¡ctures to denote denominations, such as an owl or a snake, to assist in the bartering process.
Paper money made its first appearence in China around 1260CE, As the silk road began vast amounts of commerce around Asia and beyond, it became very difficult carrying thousand of gold or silver in ones pockets. But these paper bills held a strong warning across the top. “Those who are counterfeiting will be beheaded.”
Lets fast forward again to where the gold standard was introducted in 1870. This meant that banks issued you with a paper bond which was secured by gold holdings. Meaning the bank could not issue more notes than the gold it held and the same for the mint. The value of money was directly linked to the gold in reserve. It was illegal to ´print money out of thin air´so to speak.
In 1971 President Richard Nixon of the United States of America, ordered the treasury to cancel the Gold standard and refuse anyone (foreign parties were accused) from redeeming the US gold reserves for Dollar bills. This began a worldwide compliance, where other coutries followed suit and refuted the gold standard.
How To Buy or Sell Cryptocurrencies
Currently in the 21st century, even if we may not realise, we use digital currency in our day to day life. With Moblie payments. Whether it be GooglePay, ApplePay, Venmo, CashApp, or even Paypal, we are utilising digital currency. So how does that lead us to cryptocurrencies and why do we need them?
Cryptocurrency is a form of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks based on blockchain technology. Here are some key points:
- Decentralization: Cryptocurrencies operate on a decentralized network of computers, often referred to as a blockchain. This means there is no central authority, like a government or financial institution, controlling the currency.
- Blockchain Technology: The blockchain is a distributed ledger that records all transactions across a network of computers. Each block in the chain contains a list of transactions, and once a block is completed, it is linked to the previous one, forming a chain. This technology ensures transparency and security.
- Cryptography: Cryptocurrencies use cryptographic techniques to secure transactions and control the creation of new units. Public and private keys are used to facilitate secure transactions between parties.
- Mining: Many cryptocurrencies use a process called mining to validate transactions and add them to the blockchain. Miners use powerful computers to solve complex mathematical problems, and in return, they are rewarded with new cryptocurrency coins.
- Limited Supply: Most cryptocurrencies have a cap on the total supply, creating a scarcity that can influence their value. For example, the total supply of Bitcoin is capped at 21 million coins.
- Anonymity: Transactions made with cryptocurrencies can be more private compared to traditional financial transactions, although the level of anonymity varies between different cryptocurrencies.
- Volatility: Cryptocurrency prices can be highly volatile. The value of a cryptocurrency can experience significant fluctuations over short periods, influenced by factors such as market demand, regulatory developments, and technological advancements.
- Use Cases: Cryptocurrencies can be used for various purposes, including as a medium of exchange, a store of value, and a unit of account. Some cryptocurrencies also enable the execution of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code.
So what is Bitcoin? Bitcoin is the first and most well-known cryptocurrency, created by an unknown person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin was introduced in a 2008 whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” by Satoshi Nakamoto. The software to implement Bitcoin was released as open-source in 2009. “Open source” refers to a type of software or project for which the original source code is made freely available and may be redistributed and modified. The whitepaper, (which is the guideline of the projected set out for people to see clearly where the project intends to lead to) described Bitcoin as a solution to the problem of double-spending in digital currency systems. By using a decentralized network and a proof-of-work mechanism, Bitcoin ensures that transactions are secure and cannot be easily manipulated. Since its inception, Bitcoin has gained widespread recognition as a form of digital gold and a store of value. It has also become a pioneer in the broader cryptocurrency space, inspiring the creation of numerous other cryptocurrencies with different features and use cases.
Cryptocurrency is in it´s infancy. It´s blockchain technology is cutting edge and is being implemented around the world into financial systems, for its speed, transparency and vastsly superior systems. There are many new banking facilities which can be found online. N26, Revolut, Wise, ING, just to name a few, and the are implementing the blockchain technology which is the power behind Cryptocurrency. It´s is being utilised currently and some say it will become the 12th sector of the S&P. As more regulation comes into place around cryptocurrency, it will attract more investment and the big instituational money wil come into play making it a real chance to create generational wealth by choosing the correct cryptocurrencies in which to invest.
How to Buy or Sell Cryptocurrencies
How to Buy or Sell Cryptocurrencies
How to Buy or Sell Cryptocurrencies
As of writing Bitcoin is sitting around $32,000 per ´coin,´which may sound incredibly expensive, however, don´t forget, on May 22nd, 2010, Laszlo Hanyecz paid Jeremy Sturdivant 10,000 bitcoins (BTC) for two Papa John’s pizzas which were delivered to Hanyecz’s home. This exchange is widely celebrated because it is viewed as the first use of bitcoin in a commercial transaction with bitcoin as the medium of exchange. The guy who bought pizza with Bitcoin was a programmer and early miner named Laszlo Hanyecz. Hanyecz made a post on a Bitcoin forum offering 10k Bitcoin for two large pizzas. Eventually someone took him up on his offer and delivered two Papa Johns pizzas. At the time, 10,000 Bitcoin was worth $41.
Also it is worth noting that many experts believe Bitcoins price wil rise to $1,000,000 per coin and is expected to happen within the next 10 years. Once again this is speculative and please do your own due dilligence.
Bitcoin is not alone in the crypto world, there are thousands of other opportunities available, including, Ethereum, XLM, XRP, Tether, Shiba Inu, Avalanche, 1inch, Dot, Cardano and more. But I strongly recommend you research any individual coin or token company before investing, but these are some which you may find of interest. But what are these projects and why should I look at investing?
Bitcoin (BTC), Stellar (XLM), and Ripple (XRP) are three distinct cryptocurrencies, each with its own features, use cases, and underlying technology. Let’s briefly explore each of these projects:
Bitcoin (BTC):Overview: Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an individual or group of people using the pseudonym Satoshi Nakamoto. It was introduced as a peer-to-peer electronic cash system.
Use Case: Bitcoin is often referred to as “digital gold” and is primarily used as a store of value and a medium of exchange. It is designed to be a decentralized and censorship-resistant form of money.
Technology: Bitcoin operates on a blockchain using a proof-of-work consensus mechanism. It has a capped supply of 21 million coins to create scarcity
.
Stellar (XLM):Overview: Stellar is a decentralized platform designed to facilitate fast, low-cost cross-border payments and asset transfers. It was created by Jed McCaleb, who also co-founded Ripple.
Use Case: Stellar aims to provide a platform for connecting financial institutions, payment systems, and individuals to enable seamless and affordable cross-border transactions. It focuses on financial inclusion and reducing the cost of remittances.
Technology: Stellar uses a consensus algorithm called the Stellar Consensus Protocol (SCP) and supports the creation of tokens representing various assets on its platform.
Ripple (XRP)Overview: Ripple is both a digital payment protocol and a cryptocurrency (XRP). It was designed to facilitate fast, low-cost international money transfers and improve the efficiency of cross-border payments.
Use Case: Ripple aims to provide a real-time, gross settlement system (RTGS), currency exchange, and remittance network. It is particularly focused on enabling financial institutions to settle cross-border transactions efficiently.
Technology: Ripple uses a consensus algorithm known as the Ripple Protocol Consensus Algorithm (RPCA). XRP, the native cryptocurrency of the Ripple network, is used as a bridge currency in cross-border transactions.While Bitcoin, Stellar, and Ripple/XRP share the broader category of cryptocurrencies, they have different purposes and target different use cases within the financial ecosystem. It’s important to note that the cryptocurrency space is dynamic, and projects continue to evolve and adapt to changing technological and regulatory landscapes. Additionally, there are numerous other cryptocurrency projects, each with its unique features and objective
So the main question, How to buy or sell cryptocurrencies? How to buy or sell cryptocurrencies? There are various exchanges available to purchase cryptocurrencies, some note worthy ones would be crypto.com, eToro, Coinbase and many others. To join one of these, you can do so by computer, tablet or mobile device. Download the app necessary and go through a verification process after installation. The app will take you through step by step. They will need to run an ID check and pass through your bank details, when this has processed you are free to buy of sell crypto. It is also noteworthy that many of these exhanges, give you opportunities to learn, for free, more about blockchain, crypto and investing. In fact also Revolut, the online bank allows you to buy and sell crypto also, if you have an account with them you are ables to buy and seel, stocks, crypto and commodities from your account. These exchanges are a form of broker and charge a percentage for each transaction, so it is worth looking into the fees to see which one works for you best. It really is a brave new world when it comes to finance and although crypto has been going through a very long and difficult bear market over the last few years, many experts in the field, analysts and professionals, believe that the bull market we are about to face, will be something incredible for anyone invested.
Despite these benefits, it’s important to note that cryptocurrencies also face challenges and concerns, such as regulatory uncertainties, price volatility, and potential use in illegal activities. As the technology and regulatory landscape evolve, the role and impact of cryptocurrencies in the global financial system will continue to be a topic of discussion and exploration.
How to Buy or Sell Cryptocurrencies
