CRYPTO FOR DUMMIES

In Layman's terms, Cryptocurrency is a type of digital or virtual money. Unlike traditional money, which you can hold in your hand, cryptocurrency exists only in electronic form. It uses cryptography to secure transactions, making it difficult to counterfeit or manipulate.



Think of cryptocurrency as a new kind of cash that you can send or receive over the internet without needing a bank or government to facilitate the transaction. This means you can transfer value directly to someone else, similar to handing them cash, but done digitally.



How is Cryptocurrency Traded?



Cryptocurrency is traded on platforms known as exchanges. Here’s how the trading process generally works:



1. Choose an Exchange: You start by selecting a cryptocurrency exchange, which acts as a middleman connecting buyers and sellers. Popular exchanges include platforms like Binance, Coinbase and Luno.



2. Create an Account: After choosing an exchange, you need to create an account. This usually involves providing some personal information and verifying your identity.



3. Deposit Funds: Once your account is set up, you can deposit money into it. This can be done using traditional payment methods like bank transfers or credit cards.



4. Buy or Sell Cryptocurrency: With funds in your account, you can place orders to buy or sell cryptocurrencies. You can specify how much you want to buy or sell and at what price. The exchange matches your order with someone else's order, facilitating the trade.



5. Store Your Cryptocurrency: After purchasing, your cryptocurrency is stored in a digital wallet, which can be provided by the exchange or set up independently for added security.



Cryptocurrency is a modern form of money that operates online, allowing for direct transactions without intermediaries. Trading it involves using exchanges to buy and sell, making it accessible to anyone interested in participating in the digital economy.