Although you may have invested in other markets like the stock market before, you aren’t necessarily familiar with the terminology and the technical aspects of trading and investing in cryptocurrencies.
You are unfamiliar with cryptocurrency mining but are interested to know more and determine whether it’s something you want to undertake.
Note: If you don’t have high-speed access to the Internet, you may want to get it before diving into this book. You need high-speed access to be able to work with many of the valuable online tools that we recommend.
Icons Used in This Book
Throughout the margins of this book are icons drawing your attention to certain bits of information. Here’s what those icons mean.
Beyond the Book
In addition to the material in the print or e-book you’re reading right now, this product also comes with some access-anywhere content on the web. Check out the free Cheat Sheet for more on the topics covered in the book. To get this Cheat Sheet, simply go to www.dummies.com and type Cryptocurrency All-in-One For Dummies Cheat Sheet in the Search box.
Where to Go From Here
The Dummies series tells you what you need to know and how to do the things you need to do to get the results you want. Readers don’t have to read the entire book to learn about a topic. Like all good reference tools, this book is designed to be read when needed and it’s divided into several parts.
If you’re interested in investing, for example, you can head to Book 5 to learn about risk management, strategy development, and the whole industry in general. Book 1 provides an overview of the world of cryptocurrencies, and Book 2 is your gateway to the blockchain technology.
Book 3 takes a deep dive into Bitcoin, which is the oldest cryptocurrency and probably the most well-known. Book 4 lays the foundation of Ethereum and teaches you, in clear language, how to design and write your own software for the Ethereum blockchain environment.
If you want to delve into cryptocurrency mining, check out Book 6, which can help you decide if and how you’re going to begin mining, including which is the right cryptocurrency for you to mine.
Book 1
Cryptocurrency Basics
Contents at a Glance
1 Chapter 1: What Is a Cryptocurrency? Beginning with the Basics of Cryptocurrencies Gearing Up to Make Transactions Making a Plan Before You Jump In
2 Chapter 2: How Cryptocurrencies Work Explaining Basic Terms in the Cryptocurrency Process Cruising through Other Important Crypto Concepts Stick a Fork in It: Digging into Cryptocurrency Forks
3 Chapter 3: Introducing Cryptocurrency Wallets Defining Cryptocurrency Wallets Looking at Different Types of Wallets Choosing a Crypto Wallet Keeping Your Wallet Secure
4 Chapter 4: Different Types of Cryptocurrencies Celebrating Celebrity Cryptocurrencies by Market Cap Cryptocurrencies by Category
Chapter 1
What Is a Cryptocurrency?
IN THIS CHAPTER
So you’ve picked up this book, and your first question is probably this: “What the heck is a cryptocurrency, anyway?” Simply stated, a cryptocurrency is a new form of digital money. You can transfer your traditional, non-cryptocurrency money like the U.S. dollar digitally, but that’s not quite the same as how cryptocurrencies work. When cryptocurrencies become mainstream, you may be able to use them to pay for stuff electronically, just like you do with traditional currencies.
However, what sets cryptocurrencies apart is the technology behind them. You may say, “Who cares about the technology behind my money? I only care about how much of it there is in my wallet!” The issue is that the world’s current money systems have a bunch of problems. Here are some examples:
Payment systems such as credit cards and wire transfers are outdated.
In most cases, a bunch of middlemen like banks and brokers take a cut in the process, making transactions expensive and slow.
Financial inequality is growing around the globe.
Around three billion unbanked or underbanked people can’t access financial services. That’s approximately half the population on the planet!