Why I Started Trading Cryptocurrency: My Experience With Binance

You’ve probably heard about cryptocurrency, but you might not know what it is or how it works. Cryptocurrency is virtual money that only exists on the internet. It isn’t printed like fiat money (government-backed currency) and there are a limited amount of it. It’s decentralized and borderless. You can trade Cryptocurrency on various online marketplaces and also store it in a digital wallet.

If you’re looking to get started with trading or just curious about the space, this guide will help you understand what cryptocurrency is and why you would want to get involved. We’ll also discuss the differences between Bitcoin, Ethereum, and other popular cryptocurrencies.

What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is a currency that is not issued or controlled by any country or central bank.

Instead, it is distributed, like digital information, across the world using a decentralized peer-to-peer system.

Cryptocurrency was first introduced as an alternative to government-issued money in the 1980s. However, it really took off in 2017 when the price of Bitcoin skyrocketed.

How cryptocurrency is created?

There are a few different ways to create cryptocurrency:

Exchanges – You can buy a cryptocurrency with fiat currency (i.e. dollars) and then trade it on an exchange for another cryptocurrency or back to dollars

Miners – crypto-miners use their computers to break down transactions into blocks that are added to the blockchain.

Developers – cryptocurrency developers use their knowledge of blockchain and cryptography to create new cryptocurrencies.

How to trade cryptocurrency

Trading cryptocurrencies is similar to trading stocks. You can buy low and sell high, just like you would with stocks.

There are many different exchanges where you can buy and sell cryptocurrencies, similar to how there are many stock exchanges. The most popular exchanges are Coinbase, Gemini, Binance, Kraken, and Bitfinex.

One of the great things about trading cryptocurrency is that you can buy and sell on exchanges without having to link your bank account, credit card, or debit card. This makes trading cryptocurrency a lot easier and faster.

How to store cryptocurrency

Storing cryptocurrencies is similar to storing money in a digital wallet. You have to be careful with where you store your cryptocurrency because if someone else gets access to your digital wallet, they can steal your coins.

There are many different ways to store your cryptocurrency, some more secure than others. The most secure way to store your coins is in a hardware wallet.

A hardware wallet is a device that securely stores your credentials and funds and only allows you to use them when plugged into a computer. Some of the most popular hardware wallets include the Ledger Nano S, Trezor, and KeepKey.

Cryptocurrency advantages

Some of the main advantages of cryptocurrency are decentralization, anonymity, and immunity to government manipulation of the economy.

Cryptocurrency disadvantages

Some of the main disadvantages of cryptocurrency are price volatility, high investment, and limited use cases.

What will it take for mainstream adoption?

It’s important to understand what differentiates cryptocurrency from normal currencies. If you were asking this question a year ago, the answer would have been “not much”.

However, things have changed. Governments and financial institutions around the world are now starting to take notice of this new, decentralized, global currency.

This could happen in a few different ways:

Cryptocurrency could become too expensive and only elite investors could afford to buy in.

Government regulation could make it illegal for normal people to buy in.

The blockchain could be made public, letting everyone know how many transactions occur each day.

Bottom line

In summary, cryptocurrency is a digital or virtual currency that uses cryptography for security. It is a currency that is not issued or controlled by any country or central bank.

Instead, it is distributed, like digital information, across the world using a decentralized peer-to-peer system.

Cryptocurrency was first introduced as an alternative to government-issued money in the 1980s. However, it really took off in 2017 when the price of Bitcoin skyrocketed.

If you’re looking to get started with trading or just curious about the space, this guide will help you understand what cryptocurrency is and why you would want to get involved. We’ll also discuss the differences between Bitcoin, Ethereum, and other popular cryptocurrencies.

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