An Introduction to Cryptocurrency:
Hi! I am your Crypto Tutor. I am here to help guide you through this course about Cryptocurrency. In this course, you will learn what cryptocurrency is, how it works, and how to create a cryptocurrency wallet. So, what is Cryptocurrency? Cryptocurrency is a digital asset based on mathematics and trust. Cryptocurrency record keeping is fully transparent. When a sale or purchase of cryptocurrency occurs a transaction file is created and stored in a block. When one block is full then another block is created and linked to the previous block. This is called a blockchain. These files are protected using cryptography. Cryptography is a set of mathematical rules and algorithms that help secure these files in the blockchain. In 2009, Bitcoin was the first cryptocurrency to be created. It was created by an individual or group using the pseudonym Satoshi Nakamoto. One bitcoin can be worth tens of thousands of dollars. Fractional bitcoins can be purchased and these are called Satoshi's. You don't need to be rich or have previous trading experience to learn about cryptocurrency. As part of this course, we will provide you with a Cryptocurrency Dictionary and a course guide. We will also show you the steps needed to create your own free crypto wallet.
Demystifying Cryptocurrency:
Welcome to your cryptocurrency journey. There are many misconceptions when it comes to cryptocurrency. Here are 5 of the most common misconceptions about cryptocurrency. #1 You need to be rich in order to invest in cryptocurrency. This misconception came about because the price of one bitcoin is tens of thousands of dollars. Like how one US dollar is made up of 100 pennies, one bitcoin is made up of 100 million satoshis. It is possible to buy just a fraction of one bitcoin by buying satoshis. It is also possible to invest in other cryptocurrencies that have different and often lower values per coin than bitcoin. There are over 4,000 cryptocurrencies available. Some are valued at less than one penny per coin. Bitcoin satoshis and the variety of other cryptocurrencies out there make it possible to invest in cryptocurrency for very little money. Misconception #2, you need to have previous trading experience to invest in cryptocurrency. No matter who you are or where you come from, you only need an internet connection, a computer, and a willingness to learn in order to invest in cryptocurrency. Previous trading experience is not required. Misconception #3 All cryptocurrencies are highly volatile. Similar to traditional investments, there are different types of cryptocurrencies for different risk types. You may hear in the news when Bitcoin or Ethereum drops or increases in price dramatically in a short period of time. Other cryptocurrencies that do not make the news are more stable with prices that do not fluctuate dramatically, or at all. Misconception #4 Customer service is available to help me reset my password if I lose my account information. Customer service is not available to you if you lose your account password or private key. You may have heard stories about people losing large amounts of cryptocurrency. Often times this is because they have lost their password or private key and can no longer access their cryptocurrency wallet. This is why it is so important to keep your password and private key in a safe place. Misconception #5: Cryptocurrency has no real-world value. More and more vendors and online shops are accepting payment for real goods and services in Bitcoin or other cryptocurrencies. It is also possible to change cryptocurrencies into US dollars that reside in an online wallet or that can be transferred to a bank account.
History of the Monetary System:
Let’s start with a brief history lesson on monetary systems using countries like the US and the European Union. In the past, these governments used something called the gold standard. This basically meant that you could walk into a bank and exchange your paper money for some amount of gold whenever you wanted. Over the last century, these governments have shifted towards the fiat standard which is what we still use today. Under this system, the banks no longer exchange paper money for gold. The government just promises that the paper will maintain its value like gold. Both of these monetary systems depend on trust. Under the gold standard, you have to trust that banks won’t steal the gold. Under the fiat standard, you have to trust that governments won’t print too much money. While throughout history, there have been many banks and governments that have abused this trust. So this leads to somewhat of a philosophical problem. The public values money, but there is a growing desire for an alternative standard of trust independent of banks or governments. Well, just in the last decade, a Crypto standard was born and the first baby was Bitcoin. Bitcoin was the first and still is the most popular standard, but it opened the door for an entire industry of coins which have collectively become serious competition to the old money guards. The crypto standard is a standard of trust based on mathematics and the public demand for a system that doesn’t depend on trusting banks or governments. We call all currency based on this standard cryptocurrency.
Risk & Security Best Practices:
Savvy investors are those who identify risks and make decisions based on potential income opportunities.
Every income opportunity, stock dividend, municipal bonds, real estate have risks associated with it.
We are educators and so we want to be very transparent about the risks involved so you can make sound judgments with your wealth.
Risks. The two identifiable risks are an encryption hack and a complete price collapse. Risk number 1: encryption is a mathematical process for securing private information like your bank account from unauthorized users. If the encryption is hacked, the wealth sores in the platform would be compromised. This risk isn’t new, in fact, it’s associated with every digital product, from your cell phone, social media, and online banking. An encryption hack is a risk inherent in every cryptocurrency, even bitcoin. However, the encryption methods used by these systems are considered so secure, major insurance companies are now offering insurance on cryptocurrencies. Risk number 2: Price collapse.
This scenario can occur if there is too much supply or too little demand of the cryptocurrency.
Security Tips:
Are you secure? Let’s check and find out.
Number 1. Use a separate email address for your cryptocurrency versus work and personal.
Number 2. Use a 2FA and VPN
Number 3: Never use public wifi
Store your seed phrase in a safe place like a safety deposit box or fireproof box.
Number 4: And get off a family plan because it increases vulnerability due to sim swapping.
Are you secure?
Blockchain:
Blockchain. All transactions are fully visible on the blockchain. When a sale or purchase of cryptocurrency occurs a transaction file is created and stored in a block. When one block is full then another block is created and linked to the previous block. This is called a blockchain. These files are protected using cryptography. Cryptography is a set of mathematical rules and algorithms that help secure these files in the blockchain.
Bitcoin:
Bitcoin is a digital asset and the first cryptocurrency. Bitcoin has a limited supply of 21,000,000 units and the math is written in a way that doesn’t allow any more than 21,000,000 to be created. With a limit in supply, this automatically creates a higher value in the cryptocurrency.
Cryptocurrency vs. Bitcoin:
Cryptocurrency is a digital currency that records transactions to a blockchain. Bitcoin is one of the most well-known cryptocurrencies because it was the first cryptocurrency to be invented. Then other cryptocurrencies like Ethereum and alternative coins followed. There are now thousands of cryptocurrencies.