Cryptocurrency is a form of electronic money that utilizes cryptography to secure the transactions and to combat the risk of forgery of the electronic currency. Cryptocurrencies differ from the conventional forms of money issued by countries’ central authorities in that cryptocurrencies are managed through computer networks with the use of blockchain. This technology makes the transactions to be transparent and secure since all the transactions are recorded on a public ledger.
Bitcoin which was launched in 2009 is the first cryptocurrency and is still the most popular one. Since then thousands of other alternatives known as altcoins have been launched, some of the popular ones being Ethereum, Ripple and Litecoin.
Cryptocurrencies are also a risky investment as the price of the digital currencies can be extremely volatile. There is always risk involved in investing and therefore, the beginners should take their time and do their homework before investing.
First, create an account in an online platform to enable you to store your cryptocurrencies safely. Also, it is recommended to buy and sell in well-known exchanges. It is therefore important to keep abreast with the market trends and the ever changing regulations in the world of cryptocurrency.