If your aim is to join the league of crypto-owners, but you have a truckload of unanswered questions on the nature of digital cash. It is a good idea to gather as much information on Cryptocurrencies as you can before choosing an exchange or trading platform. This guide will give you an in-depth view of the world of cryptocurrencies and how to get started trading.

Let’s dive in.

What is a crypto-currency?
Cryptocurrency, like the name suggests, is a form of currency created using cryptography. Which makes it nearly impossible to counterfeit. Cryptocurrencies like Bitcoin are popular because they are decentralized. In other words, banks and governments don’t control access to the currency.
On the other hand, fiat currencies are more easily manipulated by governments and banks. There are several Bitcoin alternatives called altcoins.

Is cryptocurrency legal?
The answer to this question depends on what corner of the world you are in. But, in most countries of the world, Bitcoin and other virtual currencies are perfectly legal. Although a handful of countries have placed an outright ban on buying, selling, and storing cryptocurrency. But before you buy any cryptocurrency, you should check if your country permits it.
It is worthy of note that every country has a different approach to regulating cryptocurrency activities. Be sure that you are not violating any rules surrounding taxation, compliance, or an outright ban.

Is cryptocurrency safe?
Life, in its very self, is filled with risks. To get the most out of it, one has to be willing to grab the bulls by the horns. That said, there is a varying degree of risk that comes with trading cryptocurrencies.
For instance, if you forget the password to access your bank account, you simply call customer support for a reset or use the self-help option, and all is well again. Now, if you forget or lose the private keys that give you access to your crypto, no one can help you.
But trading with a reputable exchange checks this risk factor — it requires trust, but you are not at risk of losing your private keys. With the right security measures in place, you are more likely to have any of your other online accounts hacked than you are to have your money stolen.

Is cryptocurrency anonymous?
Let’s just say you are like a needle in a haystack. This is because your name is not connected to your crypto-wallet address.
It is just a string of numbers and letters on the blockchain. It does not mean that you are entirely invisible.
You are simply pseudonymous (think of it as having a pen name) because you have a sort of on-chain identity. It is not just your birth name, house address, office address, and stuff.

Is cryptocurrency valuable?
Is value not what we make of it? Your local currency has value because your government said so. Basically, value is a shared belief.
Just like with anything valuable, the value of cryptocurrency itself was assigned by people. In other words, something has value if people believe it does.
This is true whether the object of value is a precious metal, a piece of paper, or some bits in a database. Because cryptocurrencies (Bitcoin especially) are a scarce digital commodity, some argue that Bitcoin may act as a store of value in the future, similar to gold.

Are all digital currencies cryptocurrencies?
The answer here is a big fat NO. You might have heard about countries and central banks working to create their own versions of digital currency. Often referred to as central bank digital currencies (CBDCs).
These are essentially digital versions of fiat money and do not enjoy most of the benefits of cryptocurrencies. Because they are issued and declared a legal tender by a government, and typically do not use a distributed ledger, such as a blockchain, to keep their records.
You might also have heard about Facebook Libra, another type of digital currency. .All activity on it will be run and managed by an association made up of a few selected members. On the plus side, it is planned to be built on an open-source blockchain system.
However, it would not be permissionless such as Bitcoin or Ethereum, meaning that participants would need more than a simple Internet connection to use it.
So, despite CBDCs and other digital money that may use blockchain or cryptography, they are quite different from cryptocurrencies such as Bitcoin.

Crypto Market size.
Globally, crypto acceptance continues to rise, but that does not paint a clear picture of how many people own cryptocurrencies or actively trade or spend them. So, here’s some data from research carried out by the prestigious Cambridge University.
Over 139 million crypto wallets Only 38% of wallets (about 52.8 million) are considered active.
52% of crypto companies work 2+ sectors The number of cryptocurrency companies operating across two cryptocurrency industry sectors or more, giving rise to an increasing number of universal cryptocurrency companies.
84% of providers support more than one coin Multi-coin support by service providers has doubled since 2017. Over 84% of providers now offer support for more than one type of coin.

BITCOIN.
It would be improper to finish this guide and not mention Bitcoin, the very first cryptocurrency that started it all.
BTC remains the gold standard for all cryptocurrencies. As people continue to adopt bitcoin for their local and foreign transactions. It is by far the most popular and valuable cryptocurrency, and many crypto traders choose to start trading crypto with it.

Closing Nuggets.
It is safe to say that Cryptocurrencies have revolutionized money and transaction patterns. Whether Bitcoin will replace gold in the digital age or become a secondary system existing as a niche market.
One cannot say with certainty what will happen to crypto markets even a year from now. The only truth is that there are growth potentials.
Patricia offers a free account that allows you to trade Bitcoin and other digital assets.
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