Cryptocurrency Basics
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates on decentralized networks based on blockchain technology.
How Does Blockchain Work?
A blockchain is a distributed ledger that records all transactions across a network. Each block contains multiple transactions, and blocks are linked in chronological order.
Popular Cryptocurrencies
- Bitcoin (BTC): The first and most well-known cryptocurrency.
- Ethereum (ETH): Known for its smart contract functionality.
- Solana (SOL): A high-speed blockchain for decentralized apps.
- Ripple (XRP): Focused on real-time global payments.
How to Buy Crypto
- Choose a trusted crypto exchange (e.g. Coinbase, Binance).
- Create an account and verify your identity.
- Deposit funds via bank transfer or card.
- Buy your desired cryptocurrency and store it in a wallet.
Important Tips
- Always use two-factor authentication (2FA).
- Store large amounts in a cold wallet (offline).
- Research before investing in any new token.
- Beware of scams and phishing attempts.