How Does Crypto Work?
Everywhere you turn, it seems like crypto is a hot topic. In between updates on the Johnny Depp and Amber Heard trial or natural disasters ravaging various parts of the globe, you’re sure to see a reputable news article about crypto within mere minutes of scrolling. Popular in both personal and professional circles, the latest and greatest in smart passive income – crypto – has become a household name for people of all socioeconomic classes.
But what is cryptocurrency and how does crypto work exactly? And with so many self-proclaimed experts, who should you listen to? Let’s break it down and keep it simple. Since, like Albert Einstein once said, “If you can’t explain it to a six-year-old, you don’t understand it yourself.”
What is cryptocurrency?
Cryptocurrency is a form of encrypted currency used as investments or for online purchases that is digital and decentralized (that is, not regulated by any government or other agency).
You can exchange cryptocurrency just as you would real money, only there is no physical money in your pocket or a “middle man.” Instead of the cash in your wallet that is losing value with each passing day due to unprecedented inflation and post-pandemic economic volatility, cryptocurrency is not tangible and cannot be artificially inflated (or deflated) like conventional cash.
This “rogue” digital payment system executes and verifies transactions using blockchain technology. The blockchain is an infallible digital ledger that records every single solitary crypto transaction, so records can never be fudged or untraceable. Think of the longest CVS receipt you’ve ever left the store with – that is similar to the idea blockchain technology. Nothing is set in stone, they say – except every crypto transaction in history.
Getting its name from using encryption to verify transactions, cryptocurrency leverages modern technology to add an unprecedented level of protection and security that traditional investment cannot provide.
And unlike fancy, hoity-toity wealth management firms with investing requirements that less than 1% of the world typically have at their disposal, with crypto, everyone can invest and have a seat at the table, making it a fan favorite for just about everyone.
How does cryptocurrency work?
Now that you know what crypto is, you might be wondering where to store it. You keep your cryptocurrency in something called a digital wallet, which many apps and vendors like Kucoin or Binance provide when you sign up for an account. Your digital wallet gives you a key, which is a code unique to ONLY you, that allows you to digitally approve and execute purchases.
You never want to share your key with anyone and you do want to keep your information in a safe, protected place. Because crypto is decentralized, the industry looms with scammers that also leverage the latest in technology to phish your information. Being ill-informed can leave you vulnerable to hackers. But don’t worry – this security checklist will get you up to speed and ensure you and your assets are protected.
With the above information you now know what crypto and the blockchain are, know about a few digital wallet options, and can really fortify your online presence with my time-tested security best practices. Congrats! You’re ready to start investing! If you want to know more about which of the 18,000 cryptocurrencies available today are the best to invest in, or learn how to maximize your return, watch my five-part series for beginner investors.
The Plan by Dan Hollings: Smart Passive Income With Crypto Bot Trading
If you are looking for a low-effort, high-return strategy for your crypto, The Plan by Dan Hollings is perfect for you. Dan Hollings, a bestselling author and marketing visionary whose background spans none other than Amazon and helping upwards of 20,000 sellers succeed on the platform, was adamant about cracking the crypto code so his investments would work in the background. He eventually created The Plan, a top-rated crypto course for beginners that uses AI automation to strategically generate profits.
In as little as a weekend’s time, you can learn the program and have your crypto set up to earn money while you sleep (or do anything besides sitting at your computer all day). Space and registration is limited but you can get on the waitlist here.
Read the Official Review of The Plan by Dan Hollings here.
The Expat Entrepreneur
Online business expert with a unique approach to matching people and their resources with the best business model to offer that individual the highest chance of succeeding. She is also a crypto enthusiast and investor and a skilled digital marketer who promotes programs and services that she has personally vetted to her inner circle.
DISCLAIMER: The information provided on this channel does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is for educational & entertainment purposes only and is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is a high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
The links on this page may be affiliate links which means if you click them we may receive a commission for referring you to a product or service – at no extra cost to you. All recommendations made are on products and services that have been personally vetted so you can be sure that anything recommended here is top caliber in its class.