Introduction to *Cryptocurrency*

What is *Cryptocurrency*?

Cryptocurrency simply means *DIGITAL MONEY*.

Cryptocurrency is a *Digital or Virtual Currency* in which transactions are varified and records
maintained and secured by a *DECENTRALIZED* system using *CRYPTOGRAPHY*, rather
than a centralized government or authority and this makes it nearly impossible to counterfeit or
double- spend. This is what we call *BLOCK CHAIN* - Secure and hack-proof method to store
information.

*Decentralized* means that the transactions are varified and records are maintained by several
verification on a Block chain rather than just one.

*CRYPTOGRAPHY* is the use of secure communications techniques that allow *only the
sender and intended recepient of a message to view it's contents.*
The term is derived from the Greek word *Kryptos*, which means *HIDDEN*

In the same way that *MONEY* is a general name, *Cryptocurrency* is a general name too.
Just like we have *Liberian dollars, Naira, Cedis, US dollars, Euros, pounds UGX,KES, etc*,
that's how there are different types of Cryptocurrencies.
They include:
*Bitcoin*
*Ethereum*
*Litecoin*
*Doge*
*Core*
*Solana* etc

The first Cryptocurrency to be invented is the *BITCOIN* by a man named *Satoshi Nakamoto*
in the year 2009.

At the time of it's invention, it was worth nothing and overlooked by many not realizing that it
was the *Birth Of A New Era Of Money*

🍕🍕
A man named *Laszlo Hanyecz* , who was a programmer and early *Bitcoin* enthusiast even

😀
used *10,000 Bitcoin* to purchase two large *PIZZAS*
Funny, right?

But now, the total market cap or total value of *Cryptocurrencies* at the time of this write up is
*1,087,388,487,154
Trillion United States Dollars*

The price of one single *Bitcoin* at the time of this write up is *23130* US dollars.
 😯😯😯
Tell me how much richer *Laszlo Hanyecz* would have been today if he hadn't given out his
*10,000* Bitcoin just for two PIZZAS?

👇
🙆🙆🙆
You do the maths

😱
*10,000 multiplied by 23130*=
Even I can't call the figure

Fast forward to now, there are over *22332* different types of Cryptocurrencies in
existence in the whole world.

These Cryptocurrencies each have values.

Their values have aggressively increased over the years.

There are specific *BANKS* where these *Cryptocurrencies* are being *Stored and traded* on a
daily basis by millions of people world wide.

Just like we have banks like *UBA, ECO, ACCESS, LBDI, FIRST BANK etc*, we also have
*DIGITAL BANKS* for *Cryptocurrencies* which are called *EXCHANGES*.
They Include:
*BINANCE*
*HUOBI*
*COINBASE*
*KUCOIN*
*KRAKEN* etc

So when you hear that *Cryptocurrency* is money 💵, please don't doubt it.
It is money in *DIGITAL FORM*.
The world has gone digital and I believe you know that.

💪
We are in the *DIGITAL ERA* so everyone should endeavor to become part of this revolution
because it has come to stay ☺️
______
Some important cryptocurrencies include (but are not limited to):

✓ Bitcoin (BTC)
✓ Ethereum (ETH)
✓ Litecoin (LTC)
✓ Cardano (ADA)
✓ Polkadot (DOT)
✓ Bitcoin Cash (BCH)
✓ Stellar (XLM)
✓ Dogecoin (Doge)
✓ Shiba Inu (SHIB)
✓ Binance Coin (BNB)
✓ Tether (USDT)
✓ Monero (XMR)
✓ Solana (SOL)
✓ Avalanche (AVAX)
✓ USD Coin (USDC)
✓ Chainlink (LINK)
✓ Algorand (ALGO)
✓ Polygon (MATIC)
✓ VeChain (VET)
✓ Tron (TRX)
✓ Ethereum Classic (ETC)
✓ ZCash (ZEC)
✓ EOS
✓ Tezos (XTZ)
✓ NEO
✓ Dash
✓ Stacks
✓ NEM
✓ Decred
✓ Storj
______
*Wait* , you can actually be seeing or reading through this but you don't actually know why it is
so important that everyone want to have it......

You can't also figure out how people are making money with it.......

It is simple, It still thesame way you work round the clock to get your normal currency.

Remember you can't just take paper and use it as money, yet our money is inform of paper and
value was attached to it....

It is still thesame thing that happen to Crypto, we attached value to it, everyone is in demand of
it and we have only few of it.....

This follow the law of the higher the demand of anything the more the scarcity of the thing or the
higher the demand the higher the price

👇🏽
This is why it is very important in today's life
______
*cryptocurrencies have several uses which include a store of value and most importantly
privacy, speed, and less or no censorship. Other uses include?*
✓ *Low-cost money transfers:* You can use crypto to make payment with a very low fee
compare to your bank that will charge you high. No body want to spend huge fee to send money
to others

✓ Earn interest via yield farming or staking

A censorship-resistant alternative store of wealth

✓ *Make secure transactions:* The transaction is secured that it can not be hacked easily

✓ Send non-cash remittances

✓ Rent out your spare hard drive space to the cloud

✓ Crypto can be use to make payment of any amount to anyone in any part of the world within
some minutes, compare to bank where you will have limit and need many documents that can
take you years to get
_______
One thing I observed from studying the market was that when ever a market experiences a very
sharp rise in price within a short period of time, it is usually followed by a consistent decline. I
understood it to mean that people start taking profit and they don’t want to lose out on the profit
so they sell the crypto asset

If there is significant demand for a particular coin, but the currently available supply is limited or
small, then the price increases.

*It’s very important to understand the cryptocurrency market if you’re interested in profiting big
time from crypto and even before you choose the Bitcoin or Altcoins you want to invest in.*
________
*HOW CAN ONE EARN PROFITABLY FROM BLOCKCHAIN BASED PROJECTS WITHOUT
GETTING SCAMMED*:

There are certain steps that can be taken to minimize the risk of getting scammed while
investing in blockchain-based projects:

1. *Do your research*: Before investing in any project, do your due diligence and research the
team behind the project, the problem they are trying to solve, and how they plan to solve it.
Check their whitepaper, social media presence, and any other relevant information that can
provide insight into the legitimacy of the project. You can also consult your financial adviser if
you any.

2. *Look for transparency*: Legitimate blockchain projects should have transparency in their
operations and should disclose all relevant information to investors. Look for information on the
project's token distribution(Incase of token projects), project roadmap, and any *regulatory
compliance* that they may have.
3. *Check for security measures*: Make sure that the project has proper security measures in
place to protect investors' funds. Look for information on the security of the project's wallet and
any smart contracts that they might be using.

4. *Evaluate the project's community*: Look for an active and engaged community around the
project. This can provide insights into the project's legitimacy and can help you evaluate the
ongoing progress of the project.

5. *Diversify your portfolio*: Do not put all your investment in one project; instead, spread your
investment portfolio across different blockchain projects to minimize the risk of loss. *(This
however does not mean you should join anything you see online, beware of scams)*

By following these steps, investors can minimize the risk of getting scammed while investing in
legitimate blockchain projects.
_______
What makes cryptocurrencies special?

Cryptocurrencies exist independently from any government, central bank, or other central
institution.

In summary, cryptocurrencies are special because:

They are digital. Cryptocurrencies have no physical form. Everything is done from phones and
computers.
They are borderless. Anyone with an internet connection can send and receive
cryptocurrencies. anywhere in the world, with (usually) smaller fees and faster speeds than
traditional money transfers.
They are permissionless and available to everyone. You don’t need to be approved by a bank
and have a bank account to use cryptocurrencies. No third party (like a bank) needed to confirm
and approve transactions.
________
They provide some degree of privacy, which means that you can make transactions without
using your name. Different cryptocurrencies vary in the degree of anonymity they provide.

They are decentralized, which means governments can’t meddle with or control them. No one
person or entity owns or controls them. Users can transact directly without the involvement of
any intermediary, which for fiat currencies, would usually be a bank.

They are created by software. The supply of a cryptocurrency is NOT determined by any central
bank but based on predefined rules explicitly written in software code. In other words, software
replaces the central bank.
They are counterfeit-proof. This is due to the way the transaction information is recorded and
stored.
________
Due to these special characteristics, cryptocurrencies provide the potential to give people total
control of their money with zero involvement from a third party.

Whether crypto can live up to this potential remains to be seen. Its popularity in the financial
world is growing and is now considered an emerging asset class.
_________