What is Bitcoin?
What is an Altcoin?
What is the Blockchain?
More importantly, why should I care?
All great questions… hopefully we will adequately answer all of them to your satisfaction.
Let’s be honest, we are all here for the money…
There I said it, let’s get it out in the open.
But, just because we want to focus on short and long term gains and assets to increase our wealth portfolio, doesn’t mean it’s not a good idea to know exactly what you’re investing in.
Think about it like your IRA or Retirement Plan at work. You decide exactly what options to invest in after you read about them or get more info. (HOPEFULLY)
So the crypto universe is vast and the information here can seem unending. So, in order to give you some level of comfort with the arena you are about to enter, we will take a “mile high” view to start.
I guess a definition of cryptocurrency is a good place to start.
According to Wikipedia, cryptocurrency is defined as:
“a digital asset designed as a medium of exchange using cryptography to secure the transactions and control the creation of additional units of the currency.”
You can find the entire Wikipedia page here.
So what does that mean?
Basically, cryptocurrency is a digital form of money or exchange.
Generally these take the form of coins and others tokens.
They are generally traded or purchased on exchanges… more on exchanges in later posts.
They all get stored in wallets. These wallets are specifically designed and designated for the individual coin or token.
There are different types of wallets, which provide you with varying levels of security and ultimately… you and only you are in control of them & responsible for them.
More on wallets in a later post.
So what exactly do these coins and tokens represent?
For the most part, they represent a share of a specific form of currency, a platform or a project.
(Think like stocks in the stock market – that’s not exactly right, but a good representation for our conversation here)
Know that we will go into these at a later time on a more individual basis, but generally speaking they represent a currency which is designed to replace an existing fiat currency, a platform or project which is trying to create something and/or solve a problem.
What To Do With This Information
Again, realizing that this is the “mile high” view of cryptocurrency, you may be asking yourself… “What do I do next.”
Well, the best answer is, learn more about this space.
We here at Crypto Coin MindSet are going to try to help you with that.
Some of the future information to increase your knowledge of the crypto universe will include the different types of cryptocurrency, how to make money with cryptocurrency, where to purchase and store your cryptocurrency, how to find hidden crypto “gems” and crypto investment strategies and tax ramifications.