Hook- Crypto feels confusing because most people explain it badly. Everyone now posts trade screenshots without explaining the basics of Cryptocurrencies and how it works. Here's a detailed explanation of what Crypto is and everything you need to know. Cryptocurrency (crypto) is a digital money that exists purely online,it has no physical coins or paper notes like naira, dollars, or euros,Pounds. Think of it as internet money that can be sent directly from one person to another anywhere in the world without needing banks, governments, or middlemen to approve or process the transaction, Instead of a bank keeping records, a blockchain does. A blockchain ( a series of block connected by chains) is like a digital record book (ledger) that stores all the transactions happening in the crypto space. *It's Shared across thousands of computers worldwide,anyone can view it but no one can secretly change it. *Every transaction is recorded forever. That’s the foundation of crypto. WHY DOES CRYPTO EXIST ? * During the year 2008–2009, Bitcoin was created right after the global financial crisis when trust in banks and central banks was at rock bottom. The mysterious creator(s) called Satoshi Nakamoto published a simple 9-page paper titled: "Bitcoin: A Peer-to-Peer Electronic Cash System" In that paper, Satoshi basically said: "We need electronic money that allows online payments to be sent directly from one party to another without going through a financial institution." So people wanted ( and will always want) a fundamentally different kind of money, that isn't controlled by governments, banks, or any single powerful entity. *Imagine you needed money urgently to solve an emergency and the only person who can send it for you is in another country, crypto is the only payment method you can use to receive money from cross borders without wasting time. *Traditional methods(moneygram, ria) are slow, expensive and is controlled by middlemen. But Crypto allows peer-to-peer(persons to persons) transactions globally. There are three (3) core concepts every beginner must understand. *BLOCKCHAIN *WALLETS *COINS AND TOKENS. Don't miss these, they are very important so you don't see as gambling 😉. WALLETS. Just like your mobile apps that lets you access your money in the bank, A wallet stores your keys(phrases) or password that gives you access to your crypto. It doesn't store your crypto for you, blockchain does that like I explained earlier at the beginning. There are 2 types of WALLETS. *Hot wallets *Cold wallets I will explain these further on my next post, so make sure to follow me. COINS- These are the NATIVE MONEY, they have their own blockchain network, so they exists independently as they are built on their own e.g, BITCOIN, ETHEREUM, SOLANA, BNB(binance coin). TOKENS- They exists on other independent blockchains like Bitcoin, solana, Ethereum, and so on, they don't have their own blockchain, think of it as someone living under another person's house, the hosts( blockchain gives them rules, provides security and infrastructures they run on. These are few basics you need to know about crypto to avoid loosing money as a beginner. Crypto is all about education so pay close attention to everything. I'm documenting crypto from basics, scratch, step by step guide to make sure you understand everything 😀. Follow me if you are new and want to know more about crypto as I will be posting more informations to enlighten you.
