Let us start our Crypto journey.
1. What is Cryptocurrency?
Ans. It's a kind of digital currency which is designed to use as a medium of exchange. It uses the encryption techniques to transfer funds from one place to another place in a secure way. It is totally independent and there is no control of government or bank on the cryptocurrencies and its prices.
2. What is Blockchain?
Ans. The Blockchain is a genius invention by a person or a group of the person namedSATOSHI NAKAMOTO. The person or group is a mystery even today.
The Blockchain is an encrypted database where the transaction of cryptocurrencies is stored anonymously. Nobody can track these transactions because these are encrypted and it's impossible to corrupt it. On Blockchain we can find the record of each and every transaction made until today.
There is no owner of Blockchain. It works with peer to peer transaction and the transactions are totally encrypted. The Blockchain is decentralized means there is it's no center and it's not under the control of the government of a country.
Many of the computers around the world are joined to maintain and secure the system of Blockchain but not an authority control it.
3. What is Bitcoin?
Ans. Bitcoin is a virtual (digital) currency and a worldwide payment system which is based on Blockchain technology. We can never touch or see it. We can only store it in our online wallet. It was invented by a person or a group of the person named, SATOSHI NAKAMOTO in 2009. It was the first decentralized and digital currency.
The Bitcoin was invented just by the motive to show that we can do a transaction of funds between each other worldwide without the interference or use of any bank or third-party services. It's never seemed like a project for investment in earlier times but when it's demand increases then the price of Bitcoin increased very fastly and many of the vendors and merchants accepted it as a payment system and more than 6 million users started using it for investment and payment system.
Advantages of Bitcoin:-
1. We can send our funds anonymously.
2. We can take it as a long-term investment plan.
3. It is encrypted so, it is the safest way to send funds.
4. We have to pay a very small and fixed fee for every transaction.
5. It is not under the control of any authority or bank which make it an independent way to send funds.
Disadvantages of Bitcoin:-
1. Bitcoins transaction are totally encrypted so, some people use it to buy drugs or other illegal weapons etc.
2. There is no control of any authority on its price maintenance which leads to change in its price every second.
3. People have lack of awareness and experience which is also a big reason for unexpected changes in its price.
4. A transaction can't be reversed if you send it to a wrong address.
4. What are Altcoins?
Ans. Coins in cryptocurrency except for Bitcoin are called as Altcoins but there are some coins like Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond etc. are the hard/soft fork of Bitcoin which are not termed as Altcoins. Altcoins are traded on exchanges with Bitcoins. Without Altcoins trading is not possible in Cryptocurrency. Neo, Etherum, Gas, Cardano, Dogecoin, Tron are some of the examples of Altcoins.
Top 10 Altcoins in Cryptocurrency market are:-
1. Etherum
2. Ripple
3. EOS
4. Litecoin
5. Stellar
6. Cardano
7. Tron
8. IOTA
9. Dash
10. Monero
5. How to create a Bitcoin Wallet?
First of all, I'll tell you what is a Bitcoin Wallet and what's its importance?
What is Bitcoin Wallet?
Ans. A place where we store our Bitcoins is called as Bitcoin Wallet. As I told you, we can't touch or see the Bitcoin we just keep it in our Bitcoin Wallet. Some of the famous Bitcoin Wallets are Coinbase (web and Android), Bitcoin Wallet (Android), Bitcoin Core (Windows), Electrum (Windows).
What is its importance?
Ans. A Bitcoin Wallet keeps our Bitcoins save and make it easier to track or transfer our Bitcoins anywhere. Bitcoin wallets keep the record of our every transaction separately and make every transaction after a human verification which makes these wallets full proof.
How to create a Bitcoin Wallet?
Ans. As I told you there are many more choices in the market but I recommend Coinbase for you because it doesn't charge any fee while sending Bitcoins to a Coinbase user and the transaction fee is also very low. It supports Etherum, Litecoin and Bitcoin Cash wallets also and you can Buy/Sell these coin if cryptocurrency is legal in your Country.
Let's create a Coinbase Bitcoin wallet:-
Step 1:- Click here and you will be redirected to Coinbase official website.
Step 2:- Click Sign Up and fill up your details. If you need a wallet for business works then you have to create a business account and if you want to use it privately or individually then create an individual account.
Step 3:- Check your E-mail which you have given to Coinbase while registration. You will receive a confirmation message. Click on Verify Email Adress and your E-mail will be verified.
Step 4:- Fill up your phone number and payment details or simply skip it if you want to fill up it later.
Step 5:- Go to accounts section. Click on receive button of the coin of which you want to receive and you'll receive your wallet address. Use that wallet address to receive coins and to send coins click on send and fill up the amount and the wallet address of the person to which you want to send coins.