In this blog, you’ll get a beginner’s breakdown of all the need-to-know details.

You hear your friends talking about it. You know it’s all the rage. But you don’t really know what it means. What is cryptocurrency, exactly? In this blog, you’ll get a beginner’s breakdown of all the need-to-know details.

What is Cryptocurrency, in Simple Terms?

A cryptocurrency, also called “crypto,” is digital or virtual money. However, it’s not like exchanging physical cash or even using your favorite cash app. Cryptocurrencies are secured by cryptography, which means that it’s almost impossible to alter in any way. In other words, double-spending, stealing, or using counterfeit crypto is incredibly difficult. This makes cryptocurrencies very secure to use.

Another word you might hear in crypto conversations is “decentralized.” Cryptocurrencies are decentralized virtual money. This means that people who are buying and selling crypto can work directly with each other, and not through a centralized exchange. You don’t need a third party like a bank or payment processor. Furthermore, there is no main authority controlling the buying and selling of crypto — not a country, company, or even the government. These decentralized markets that cryptocurrencies use are based on blockchain technology. Blockchain technology is what allows peer-to-peer transactions. You can buy and sell crypto from anywhere in the world, to anywhere in the world, 24/7/365, and the transfer is almost instantaneous.

To recap:

● Cryptocurrencies are digital money secured by cryptography, making it nearly impossible to manipulate.

● Crypto is decentralized, meaning that there’s no central authority controlling it.

● This is made possible through blockchain technology, which is the backbone of this peer-to-peer network.

If There’s No Middleman, How Do We Keep Track of Cryptocurrencies?

Great question!

Think of it like this: That blockchain almost acts like a balance sheet that your bank would normally manage. Every cryptocurrency has a blockchain unique to it. This blockchain never goes away and it’s constantly updated. It essentially records every single transaction ever made for that currency.

And here’s what’s really cool. A bank balance sheet is only available to the bank and that member. A crypto blockchain, on the other hand, is available to the entire network using that specific currency.

Wait, So There are Different Cryptocurrencies?

Yes! Just like there are different currencies across the world, there are various cryptocurrencies. The one you’re probably most familiar with is Bitcoin. It was the first-ever cryptocurrency, launched in 2008. To this day, it’s still the most well-known and influential type of crypto. However, there are others — like Ethereum.

You can buy and sell as many types of crypto as you’d like. Just make sure you have an efficient and secure way of managing them, such as using a cryptocurrency wallet.

What are the Pros and Cons of Crypto?

Let’s talk about both sides of the coin. (Get it? Coin? Money? Crypto? Okay, we’ll stop.)

Advantages of Cryptocurrencies

We’ve touched on some of this already, but let’s keep going:

● Crypto allows for immediate money transfers with very low fees. It can be quicker and cheaper than using a bank.

● Your currency is liquid and quickly accessible.

● The decentralized system means that no one is controlling the transactions. As an added bonus, because it’s not under government control, it’s not subject to taxation.

● You can access it from any country, and more businesses are starting to accept it as payment.

● It’s private. The only identification of a crypto transaction is the numerical code.

Disadvantages of Cryptocurrencies

Everything has a downside, including crypto.

● The prices of cryptocurrencies can fluctuate quite drastically. (To be clear, this can be a good thing, if the prices of currencies go up, which has absolutely happened — and very dramatically. However, it can just as easily go down, too.)

● Because there’s no main controlling party, anyone can use crypto for anything — including criminal activities.

● It’s irreversible. Once a transaction happens, there’s no undoing or disputing it.

● Because it’s (mostly) anonymous and there’s no public tracking, transactions can’t be traced back. This could be abused, and users can’t take any legal action.

● While more places are starting to accept crypto as payment, it’s still very limited compared to something like a debit or credit card, which you can use just about anywhere.

Should I Invest in Crypto?

While many people use crypto to purchase things, a lot of people buy it simply as an investment. And it’s no wonder why. If you look at the trend of Bitcoin prices, as an example, you’ll see why everyone is going nuts over crypto. In September of 2020, the Bitcoin price index was $10,764.28. By March of 2021, it had skyrocketed to $58,734.48. And it saw its peak (as of now, anyway) in October of 2021, hitting $61,374.28.

In other words, if you bought Bitcoin before these spikes, you put yourself in a position to make a ton of money. If you bought it cheap, you would have potentially been able to sell your currency for many, many times what you paid for it.

However, investing in crypto is like investing in anything else: There are inherent risks involved. There’s never any guarantee that you’re going to see a return on your investment. In fact, you can lose money. Such is the life of an investor, and it’s something you simply have to accept if investing in cryptocurrencies (or anything else) is something you’re interested in.

Buying and selling crypto is one thing. Managing it is another. That’s where Ballet comes in. We’ll help you:

● Manage your cryptocurrency accounts with ease.

● Buy, sell, and trade crypto directly within your Ballet crypto wallet.

● Securely store your NFTs.

Learn more about how Ballet can help you control your crypto easily, safely, and efficiently. Remember that the system for keeping your crypto organized and secure is as important as the currency itself.

About us

Ballet is a U.S. company that provides simple and secure cryptocurrency storage solutions for the global mainstream market. Ballet is the team behind the world’s first multi-currency, non-electronic, physical crypto wallet. The company was founded in 2019 by Bobby Lee and an international team of cryptocurrency industry veterans. Ballet is headquartered in Las Vegas, Nevada in the United States, and has an office in Shanghai, China.

For more on our products please check us out at: https://www.ballet.com/

Interact with us on our other social media platforms:

Twitter: https://twitter.com/BalletCrypto/

Facebook: https://www.facebook.com/balletcrypto.global/

Instagram: https://www.instagram.com/balletcrypto/

Telegram: https://t.me/BalletCrypto/

Reddit: https://www.reddit.com/r/BalletCrypto/

LinkedIn: https://www.linkedin.com/company/balletcrypto/

Youtube: https://www.youtube.com/channel/UCi2y_uFMqgdst7xe7FolG3w/

Weibo: https://www.weibo.com/BalletCrypto?from=myfollow_all/

Discord: https://discord.gg/e58FqyDA

Anchor: https://anchor.fm/ballet-crypto

What is Cryptocurrency? was originally published in BalletCrypto on Medium, where people are continuing the conversation by highlighting and responding to this story.