Mark Tencaten | Things You Should Know About Cryptocurrency before Investing

Cryptocurrency got its name from the fact that it uses encryption to verify transactions while ensuring complete security and safety.

Cryptocurrencyhaspulledattentionofmillionsacrosstheworldoverthelastfewyears.But,still peopleknowverylittleaboutit.

Itisbasicallythedigitalorvirtualversionofacurrency.But,likeothercurrenciescryptocurrencies arenotregulatedbyacentralissuingorregulatingauthority.Instead,thereisadecentralized systeminplacetorecordtransactionsandissuenewunits.

Thefollowingarticlecoverssomeoftheimportantaspectsofcryptocurrency.Youcanalsocontact Mark Tencaten,oneofthepopularcrytoexperts,toknowaboutitindetail.

What is Cryptocurrency?

Cryptocurrencyisadigitalmodeofpaymentsystemthatdoesn'trequirebanks’verificationon transactions.Infact,it’saone-on-onepaymentsystemthatallowsanyonetosendandreceive paymentsanywherearoundtheworld.

“Unlikephysicalmoneythatcanbecarriedaroundandexchangedanywhereintherealworld, cryptocurrencypaymentsarerecordedentirelyonanonlinedatabaseasdigitalentriesandare storedindigitalwallets,”explainscryptoexpert Mark Tencaten

Thefirstandthebestknowncryptocurrencytodaywascreatedas ‘Bitcoin’in2009byapersonor personscalledasSatoshiNakamoto.Theidentityofthecreator/sisstillamysteryasthereisa decentralizedauthoritythatoperatesBitcoin.

How does cryptocurrency operate?

Basically,cryptocurrenciesrunonsoftwarenetworks,managedbyawiderangeofcomputers throughseparatecopiesofthesameprogram.Whileallthecomputersareinterconnected,nosingle computercontrolsthenetwork,therebystructuringa“decentralized”network.

Thisdecentralizednetworkofcomputersperformstwobasicfunctions:

1. Toprocesstransactions,and

2. Tomaintainthedatabasethroughrecordingandstoringthetransactionsexecuted.

Thissetoftransactionsissegregatedintosectionscalled“blocks,”thatarejoinedwitheachotherin chronologicalordertoformalong,unbroken“chain.”Andthesoftwareformedbythisnetwork becomes“blockchain.”

Aprocesscalledminingisusedtocreatetheunitsofcryptocurrency.Itisimportanttonotehere thatbyowningcryptocurrency,youdon’townanythingtangiblelikeincaseofphysicalcurrency. Allyou’llownisakeywhichcanbeusedtomovearecordoraunitofvaluefromonepersonto anotherwithouttheneedofabankorsomeotheragencyorgateway

Thoughtherearethousandsofcryptocurrenciesoperatinginthemarket,someofthemost commononesareofcourseBitcoin,Ethereum,Litecoin,andRippleamongothers.

Steps to Buy a Cryptocurrency

Buyingacryptocurrencysafelytypicallyinvolvesthreesteps:

Step 1: Choosing a platform

Youcanchooseeitherfromthededicatedcryptocurrencyexchangeoratraditionalbroker.

Traditionalbrokersaretheonlinebrokerswhoallowpeopletobuyandsellcryptocurrency These platformsgenerallyhavelowertradingcostsbutofferverybasiccryptofeatures.

Cryptocurrencyexchangesontheotherhandoffermultiplecryptocurrencies,interest-bearing accountoptions,walletstorage,andmore.Theseexchangesofferfeature-basedchargeandcomeup withahostofuser-friendlyfeatures.

(I) Funding the account

Afterchoosingyourplatform,yournextstepistofundyouraccounttostarttrading.Youcan purchasecryptousingcurrenciesissuedbythegovernmentviayourdebitorcreditcards;however, cryptopurchaseswithcreditcardsisnotconsideredapreferredmodeofpayment.Someplatforms alsoallowcryptoexchangethroughACHtransfersandwiretransfers.

(II) Placing an order

Youcaneitherseekassistanceofyourbroker'sorcanuseexchange'swebormobileplatformto placeyourorder

YoucanalsoinvestincryptoviapaymentserviceslikeCashApp,PayPal,andVenomo.Toknow moreaboutityoucancontactcryptoexpert Mark Tencaten

How to Store Cryptocurrency

Afterpurchasingcryptocurrency,younowneedtostoreitsafelyinordertoavoidhackingortheft. Physicaldevicesordifferentonlinedevicessuchascryptowalletsprotectitfromhacksortheft. Usually,cryptocurrencyisstoredincryptowallets,whicharephysicaldevicesoronlinesoftware usedtostoretheprivatekeystoyourcryptocurrenciessecurely.

Thisisthebasicinformationaboutthesaleorpurchaseofcrypto.However,itisamorecomplex systemthanitmayappearandmayinvolvesomerisksaswell.Therefore,itisadvisedtoconsult cryptocurrencyexpertssuchasMarkTencatentoinvestsafelyincryptocurrency.