Cryptocurrency has become very important asset as far as the internet is concerned, its a digital currency that depends on cryptography technology for security.

What is crypto currency?

cryptocurrency is a digital currency that does not rely on banks to validate transactions. Its is a Peer-to-peer technology that makes it possible for anybody, anywhere, to send and receive money. Cryptocurrency uses Digital entries to an online database detailing individual transactions to ensure safety of transactions made to its database. the first cryptocurrency was created is called Bitcoin and has been around since 2009.

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How cryptocurrency works?

A Public ledger keeps track of all cryptocurrency transactions that take place when money is transferred. Crypto wallets are used to store cryptocurrency.

Cryptocurrency uses encryption to confirm transactions is how it got its name. This indicates that the storage and transmission of bitcoin data between wallets and to public ledgers require sophisticated coding.

Encryption data  is used used to make the currency safe since the currency  doesn’t rely on banks to validate transactions, With Peer-to-peer technology it possible for anybody, anywhere, to give and receive money. As opposed to actual money that is carried and exchanged in the real world or regulated by banks. A public ledger keeps track of all cryptocurrency transactions that take place when money is transferred within the crypto space. Crypto wallets are used to store cryptocurrency.

A distributed public database known as the blockchain, which is updated and maintained by currency holders, provides the basis for cryptocurrencies.

The process of mining, which includes employing computer power to solve challenging mathematical problems that generate coins, creates units of bitcoin. Additionally, users can purchase the currencies from brokers, keep them in encrypted wallets, and use them as needed.

You don’t actually own anything if you hold cryptocurrencies. You possess a key that enables you to transfer a document or a measurement unit from one individual to another without the assistance of a reliable third party.
Despite being around since 2009, cryptocurrencies and blockchain applications are still in their infancy from a financial standpoint, and additional applications are anticipated in the future.

Examples of cryptocurrency

1. Bitcoins (Btc): The first cryptocurrency bitcoins was developed by Satoshi Nakamoto in 2009. its is the most popular cryptocurrency and the fluctuation in  price, demand and supply of other currencies seem to depend on the first ever cryptocurrency bitcoin.
2. Ethereum(ETh): Ethereum developed in 2015 is a blockchain platform with its own currency called Ethereum or Ether(Eth)
3. litecoin (Ltc): liteoin is most similar to bitcoin technology but has quickly evolved over time.
4. Ripple(xrp): Ripple is a distributed ledger system that was founded in 2012. Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions. Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.

what is altcoin?

The term altcoin is used to refer to any cryptocurrency other than Bitcoin. Examples include ethereun(eth),litecoin, ripple, cardano etc.

How to buy Cryptocurrency

The following are steps to enable you buying cryptocurrency safely:

1. Choose a Platform to buy from:

The platforms to buy cryptocurrency can be categorized into two namely: i) Traditional broker and ii) cryptocurrency exchanges iii) Cex iv.) Dex

i.) Traditional Brokers: These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features.)

Traditional broker: These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features. e.g etoro

ii.)   cryptocurrency exchange: cryptocurrency exchanges are online platforms that offer a market places for buying and selling of several cryptocurrencies, they also offer a digital wallet for storage of your cryptocurrencies after making purchase on their platforms. e.g include Binance, bybit, okx etc. for starters coming into the crypto world its is wise to start with crypto exchanges.

iii.) Cex: The term Cex denotes centralized exchange, There are crypto trading platforms that has a central governance, a middle man that mediates the buyer and seller. This platforms offers other services like customer care support and some forms of customer protection in exchange for trading fees. examples of this platform is bianace, bybit, bitget as the writing of this post binance is biggest centralize exchange.

iv.) Dex: The term Dex denotes Decentralized exchange. This are exchanges that allow users to buy cryptocurrency without any middle man. Some examples of this platforms are pancakeswap, Uniswap etc.

How to Buy crypto from A Decentralized Exchange like Unsiwap

In order to buy crypto from a decentralized exchange like uniswap the first thing you need to do is to download the app from google playstore (android) or iOS store for apple users.

with a decentralized exchange you don’t need to create account the way you will normally do with a centralize exchange, in this case you will be required to create wallet and on creating this wallet you will be given a 12 word key phrase and mind you this is the password to your wallet if missing you are done with that wallet for the rest of your life except you create a new one.

This is one of the reasons why some persons prefer to trade only with a centralized exchange. The fact is the higher the risk the higher the potential reward.

The next step to take in order to buy crypto with a decentralized exchange is to buy crypto with a centralized exchange. The essence of buying crypto with a centralized exchange is to enable you use your fiat cash to buy either through p2p or with your credit card. As a this writing the only means of buying crypto in countries like Nigeria is through p2p and this is due to the government ban on crypto transactions.

After Buying crypto on a centralized exchange either with your credit card or p2p he next step is to send your crypto to a decentralized exchange like uniswap or pancakeswap. Now assuming i bought Solana coin the centralized exchange and transferred to the decentralized exchange i would only be able to buy tokens and coins within the Solana blockchain.

2. Fund You Cex( centralized exchange) Account:

In order to buy cryptocurrency you need to deposit your fiat currency into online account, lets say for instance you decide to signup with binance, after signing up you need to deposit money into your account by the use of p2p(peer2peer) or credit transfer method. its is this money that will be used to exchange with other crypto assets.

3. Place Buy Order:

Placing Order on crypto exchange is a full course on its on which we will treat later on this website because the profits lies in the buying and also in the selling, it all about the execution strategy.

Ways to Place A Buy Order On A Centralized exchange Like Binance:

1. Market order
2. Limit buy order
3. Limit sell order