Get your Feet Wet with Cryptocurrencies

Do you deal with money, taxes or property? Then you better learn about money 2.0 or you’re going the way of the dinosaurs.

The most popular cryptocurrency is called Bitcoin and it uses the blockchain technology just like all the others. It’s an open ledger that is shared by all and removes the middle man like banks or eventually notaries etc.

Money

  • Visit a bank and open an account
  • Add funds to the account
  • Buy stuff with a debit card
  • Send money to a friend by email

Money 2.0

  • Go to Coinbase.com and open a digital wallet
  • Buy Bitcoins with Coinbase or even bitcoin ATMs
  • Buy anything on overstock.com with Bitcoins
  • Send money from Coinbase.com to someone else’s digital wallet

Advantages

  1. No bank involved
  2. No bank account fees (just tiny transaction fees)
  3. No minimal balance
  4. No government control (they could tax capital gains)
  5. No currency conversion between countries, Bitcoins is a world currency
  6. Send any amount to anyone in the world and fast

How to transfer bitcoins

The recipient clicks the Receive button which generates a wallet address, long code with numbers and letters ie.  1QG7gLiqsFpJnMDGFfZ9KjYVL2769g93
The sender clicks the Send button from their digital wallet ie. Coinbase and enter the $ amount or bitcoin amount then enters the recipient’s wallet address. The transaction can take anywhere from a few seconds to several hours to be confirmed by the network.

Security

Since there is no bank involved you must secure your own digital wallet, I recommend reading up on 2 Factor Authentication

TLDR

Bitcoin, Ethereum, Litecoin and Ripple are just examples of the 1000+ cryptocurrencies that exist. There are more digital currencies than real fiat currencies in the world!

The underlying blockchain technology essentially proves ownership or transactions. In this case, the Bitcoins in your digital wallet, but it could prove ownership of a property like a house or eventually a democratic voting system.

Coinbase was used as an example above because it’s the largest online digital wallet, but there are several others to choose from including downloadable/offline ones.

5 Replies to “Get your Feet Wet with Cryptocurrencies”

  1. Bitcoin does NOT have tiny transaction fees! 😛 It has the largest fees of ALL cryptos, around $15-$30 for a single transaction.. And it is also very ‘slow’ because it can only handle around 10-16 transactions per second. And last but not least, it uses REALLY a lot of energy, every second it uses enough power for your house for 9 days..

    So always use Litecoin or Ethereum if possible, because the fees will be 10 times lower. And for the rest.. Take it easy, ONLY use the money you can loose. And remember that it really is a very fast rollercoaster. Prices can change 10% in a couple of minutes sometimes.

    1. Thanks Bas for the details, you are correct as of today, but the fees have also been on the same roller coaster ride, only a couple of months ago the fees were just pennies for any transaction.

    1. I agree if your source of electricity is from coal, but if it’s sustainable energy than that argument is moot and the technology is powerful. I don’t believe our current currency is better, physical coins and bills are continually produced at a cost also.

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