Cryptocurrency has seen unprecedented growth, particularly with Bitcoin, which remains the most valuable cryptocurrency on the market today.
Acquiring knowledge about cryptocurrency is essential for those wishing to trade or invest in it. Here are some of the top cryptocurrency courses available online to get you started.
What is a Cryptocurrency?
Cryptocurrency is a digital form of cash that doesn’t rely on governments or trusted third parties to verify transactions and create new currency units. Instead, it uses cryptography to verify transactions on a publicly distributed ledger known as the blockchain.
It’s also portable, censorship-resistant and accessible globally – making it an economical and convenient way to make cross-border payments.
Cryptocurrencies differ from traditional fiat currencies in that their values can fluctuate drastically over time, potentially leading to losses for consumers.
What is a Blockchain?
Blockchains are decentralized digital ledgers that store information and history. Because they’re secure, only those with access to them can decrypt it – making them highly resistant to forgery attempts.
Blockchain technology is founded upon three pillars: decentralization, transparency and immutability. These characteristics make blockchain useful across a range of industries and sectors, such as cryptocurrency to healthcare research and product tracking.
Blockchains store new entries or records through consensus mechanisms like proof of work (PoW) or proof of stake (PoS). To alter a record on the blockchain, majority agreement of its computing power must be reached.
What is a Wallet?
A wallet is a device, service or application that stores private keys for cryptocurrency transactions. They come in many forms – from hardware wallets like Ledger (which resembles a USB stick) to mobile apps that make using crypto as simple as shopping with credit card online.
Cryptocurrency wallets store pairs of private and public keys, which enable people to send and receive cryptocurrency on the blockchain. Furthermore, they store a seed phrase that users can use in case their private keys are lost or compromised.
What is a Digital Signature?
Digital signatures are unique identifiers generated through a mathematical algorithm and used to verify the authenticity and integrity of messages and documents.
Valid signatures provide high assurance in the sender’s identity, as they demonstrate ownership of a secret key is solely assigned to that user. This prevents any tampering with of the information.
Digital signatures have long been recognized as a best practice for electronic transactions, being employed in paperless banking, insurance, mortgages and contracts alike. Furthermore, these technologies help reduce costs, time and labor associated with routing and managing paper documents.
What is an Altcoin?
Altcoins are digital currencies that differ from Bitcoin in that they enable people to transfer money between themselves without the need of relying on a central authority or bank for approval.
These coins can be used to purchase goods or services from merchants who accept them, as well as being exchanged for other currencies or sold on exchanges.
At present, there are over 5,000 altcoins available on the market. Each coin works with a specific blockchain and offers its own features. Popular examples of altcoins include Ethereum, Ripple, Tether, Bitcoin Cash and Litecoin.
What is a Scam?
Scams are criminal activities that attempt to obtain your money or other personal information through electronic means. While scams can take many forms, the majority involve the theft of funds through this electronic method.
Scammers may pose as legitimate companies such as Amazon, Microsoft, FedEx and your bank in an effort to take advantage of you. They may send messages via social media platforms or pop-up windows appearing to be from these brands.
These scams typically demand you buy cryptocurrency or send it to a wallet they provide for safekeeping. No legitimate company will ever request your personal details or PIN codes in this manner.
What is a Trading Strategy?
A trading strategy is a set of rules or guidelines that dictates your cryptocurrency trading activity. They help you manage volatility and prevent impulsive decisions.
Some traders use trading strategies to manage their risks, while others strive to maximize returns. No matter your style of trade, having a sound strategy in place can mean the difference between occasional lucky streaks and consistent long-term gains.
Crypto trading strategies such as dollar cost averaging, range trading and technical analysis are popular ways to make money in the market.