Cryptocurrency Explained to a Non-technical Investor

Having been writing and twitting about cryptocurrency as a writer/editor, I was regarded as a source of information to some who were just started to look into bitcoins. To explain to them what is crypto proved to be a challenge. Here is a briefest version based on Q&A sessions with my followers.

(photo source: noncommercial reuseable)

What is a cryptocurrency?

Bitcoin is a digital currency. The technology support it is blockchain. It is designed to have no third party in transactions, such as a bank.

How to buy crypto?

It is like trading stocks, only more volatile. So either you spend a lot of time research each coin or token, or you let an expert do it for you. The largest cryptocurrencies are bitcoin, ethereum, and ripple.

You can buy these at coinbase with US dollar. Once you have bitcoin or ethereum, you can use these coins to buy other coins or tokens. Binance only accepts cryptocurrencies, dollars are not accepted.

There is one more thing I want to mention. To trade cryptocurrency, you will need to have a wallet.

The wallet is yours no matter where you trade.

There will be a private key assigned to you.

You use this key to buy and sell.

To be safe, many buy a hard wallet just to store the key. Otherwise your key will be stored online.

Keepkey, for example, is such a device that you can buy from Amazon. There are other similar products.


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