Beginner’s Guide to Bitcoin and Crypto
If you’re reading this, you’ve probably heard a bunch of buzzwords about how cryptocurrency is “the next big thing”. You’ve decided that you want to understand what all of the buzz is about but you’re not quite sure where to start. If so, you’ve come to the right place.
This guide is intended to describe the important parts of cryptocurrency without a lot of huge technical terms. You can learn about Bitcoin and Ethereum, including what they are, how they work, and why they’re such a big deal in the cryptocurrency space. By the end, you’ll know what “cryptocurrency mining” is, how it relates to “Proof of Work” and “Proof of Stake”, how they work, and the advantages of one over another.
If you decide that you want to go beyond learning about cryptocurrency and want to get involved, everything that you need to get started is included as well. You can find a guide explaining what a cryptocurrency “wallet” is, how to get one, and how to buy your first cryptocurrency and make sure it makes it inside. For investors, there is a section on basic investment strategies for cryptocurrencies and the pros and cons of day trading versus long-term holding. Finally, you can find out what an ICO is and the options and opportunities it offers to potential investors.
This guide is divided into three different chapters, each providing information about a certain aspect of the cryptocurrency space. These three chapters explain the basics of cryptocurrency in “What is Cryptocurrency?” and go into the details of the two biggest cryptocurrencies in “What is Bitcoin?” and “What is Ethereum?”
What is Cryptocurrency?
This is the largest chapter of this guide and is divided into multiple sections that describe various aspects of the cryptocurrency space. At the top level, you can find an introduction to blockchain technology, how cryptocurrency transactions work, and what cryptocurrency mining is. For more information on cryptocurrency topics, check out the subsections in this chapter. Included content covers:
- What is the blockchain?: Describing the blockchain technology that makes cryptocurrency possible.
- Cryptocurrency mining: What cryptocurrency mining is, how it works, and how to get involved and make money.
- How to get cryptocurrency: A few simple steps to set up a cryptocurrency wallet and make your first cryptocurrency purchase. Also includes an explanation of what an ICO is and the investment opportunities that it provides.
- Cryptocurrency investment strategies: Describes the methods and pros and cons of day trading versus long-term holding in cryptocurrency.
- Top market cap cryptocurrencies: Provides a brief introduction to the most successful cryptocurrencies to date, Bitcoin and Ethereum.
- Special coins: Some cryptocurrencies are designed around a given feature or functionality. This guide covers some of the major types.
What is Bitcoin?
What is Ethereum?
Ethereum is the second most valuable cryptocurrency and pioneered the concept of a smart contract. This chapter begins with the description of what Ethereum is, the history and future of Ethereum, and details of how it works. It also includes additional details on Ethereum smart contracts and what an ICO is and its relationship to Ethereum.