CRYPTOCURRENCY: EVERYTHING YOU HAVE TO KNOW BEFORE BUYING ANY MAJOR CRYPTOCURRENCY (Beginners guide)

 Now that you’ve understood what Cryptocurrency is, the only thing you’re probably thinking is what coin should I buy next?

You may just want to buy some coins and save them for their potential growth in the future.

Or you may want to become more of an active investor (trader) and buy or sell cryptocurrencies more regularly to maximize profit and revenue. 

Regardless, you must have a plan, strategy and knowledge of what you’re getting into.

Most cryptocurrency were created for a purpose and to solve a problem and they were not created solely for investments initially!

Let’s start with the King,

1 #Bitcoin

Bitcoin $BTC was created as an Alternative to fiat ( fiat means government owned and regulated currency)

Bitcoin performs the same function of your traditional money which is to buy and sell goods and services with money over the internet but major aim of

Bitcoin is to provide an alternative payment system that would operate free of Government control.

2. Ethereum $ETH 

- unlike the Bitcoin network, the primary purpose of Ethereum is not to act as a form of currency. Ethereum users can build applications that “run” on the blockchain. You know how you have “Android” and “iOS” and some Apps are available on iOS but not on Android?.

Ethereum is something like an OS but for blockchain. Eth also allow those interacting with the Ethereum Network to make and operate 'smart contracts' without having to trust each other or use a middleman.

I’ll simplify “Smart Contracts.”

Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a ‘middleman’.

2. BNB

The BNB coin is the cryptocurrency for the exchange platform Binance. BNB started as an Ethereum-based token (remember we said Ethereum let’s you create Apps on its “OS”, BNB was created on Ethereum initially until Binance became big and created their own “OS”

(Custom Blockchain) called Binance Smart Chain to solve the problem of high gas fees on Ethereum! The sole purpose of BNB is not to replace fiat but to offer an alternative way to pay for fees charged to traders

3. DogeCoin

Crypto experts have argued that DogeCoin has no critical use and should not be taken serious and also described it as a Meme coin (which it actually is) but why is the value increasing if it’s not useful you may wonder.

Now there are other Coins that have absolutely no use, they were just created to pump, and possibly dump

So you gotta be Careful when buying a Coin. Bitcoin remains the only coin that is safe to a large extent in terms of long term investment and returns.

Every other Coin has its risks, a little research might help you manage your risks but always put what you can afford to lose or