Intro to Cryptocurrency for Absolute Beginners

Hi all, due to so much people asking me questions about crypto, I decided to do this.

This thread is for total beginners who have no idea what cryptocurrency is and what blockchain is and how to get into crypto and want to learn more.

I will be posting beginners tutorials from my free ebook here on this thread and you can read along and learn.


WARNING: Beware of scams in crypto. There are a lot of scams especially from people you dont know who contact you first.

I don't send people messages without first asking them first in public so if you receive any message from "me" it most likely a scammer. The same for most instructors and influencers online. Be very careful!!!


Okay so let's begin:

Overview of Cryptocurrency

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Unlike traditional currencies, cryptocurrencies are decentralized, which means they are not controlled by any government or financial institution. The first and most well-known cryptocurrency is Bitcoin, which was created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto.


History of Cryptocurrency

The idea of digital currency has been around since the early 1980s, but it wasn't until the invention of blockchain technology that cryptocurrencies became a reality. The first attempt at creating a digital currency was done in 1996 when a company called e-gold started offering a way to buy gold online. However, e-gold's centralized nature made it susceptible to fraud and money laundering, and it was eventually shut down by the US government in 2008.

In 2009, Bitcoin was introduced as the world's first decentralized cryptocurrency. It was created to be a peer-to-peer electronic cash system that would allow people to send value directly to each other without the need for an intermediary. Since then, thousands of other cryptocurrencies have been created, including Ethereum, Litecoin, and Ripple.

How Cryptocurrency Works

Cryptocurrencies work by using a distributed ledger technology called the blockchain. A blockchain is essentially a database of transactions that is maintained by a network of computers around the world, rather than a single centralized entity. Each block on the blockchain contains a record of several transactions, and once a block is added to the chain, it cannot be modified or deleted.

To transact with cryptocurrencies, users need a digital wallet, which is a software application that stores their private keys. Private keys are used to sign transactions and prove ownership of the cryptocurrency. When someone sends cryptocurrency to another person, they broadcast a transaction to the network. Miners on the network then validate the transaction and add it to a block on the blockchain. As a reward for their work, miners receive newly created units of the cryptocurrency.

Advantages and Disadvantages of Cryptocurrency

One of the main advantages of cryptocurrency is that it is decentralized, meaning that it is not controlled by any government or financial institution. This makes it resistant to censorship and manipulation. Additionally, cryptocurrencies are often faster and cheaper to transact with than traditional currencies, especially for cross-border transactions.

However, there are also disadvantages to using cryptocurrencies. One of the biggest concerns is the lack of regulation, which leaves investors vulnerable to fraud and scams. Cryptocurrencies are also highly volatile, with prices often fluctuating wildly in a short amount of time. Finally, the anonymous nature of cryptocurrencies makes them attractive to criminals, who use them for money laundering and other illegal activities.