Crypto Made Easy | Intro To Crypto
Welcome to our ‘Crypto Made Easy’ series, where we simplify the complex world of crypto so that you can better understand, be informed, and feel good about joining the future of tech, internet, and connectivity.
Let’s talk about what crypto is. Cryptocurrency is a form of digital currency based on a network that is distributed across a large number of computers. The technology allows you to trade crypto directly without going through a central 3rd party like a bank — making it decentralized. Cryptocurrency and its technology are like virtual accounting systems. They keep a record, or ledger, of all transactions on the blockchain.
What is the blockchain? The blockchain is a shared, unchangeable ledger that records transactions and assets across many computers. Making it — you guessed it — decentralized. Virtually anything of value, and its ownership, can be tracked and traded on a blockchain network. This allows for more trust, security, and efficiency in transactions. We’ll touch more on exchanges, decentralization, & centralization in the cryptocurrency space in another post.
Some advantages of crypto include cheaper & faster transfers, transparency, and systems that do not collapse at a single point of failure.
There are also different types of cryptocurrencies out there:
- Store of value — like the most widely known, Bitcoin. These coins simply store value and nothing else. Some people refer to this as digital gold.
- Utility tokens — these tokens actually have uses within a specific ecosystem that allow holders to perform specific actions through smart contracts. Like with $JAM, users can own their content & social identity, and artists, creators, and fans can all earn and generate value for engaging and making moments together.
- Security Tokens — which are like stocks. They represent ownership shares for assets that have value, like real estate, a car, or corporations.
With technology increasingly becoming a crucial part of our lives, the possibilities are truly endless. We’re beginning to see blockchain technology and cryptocurrencies make its way into the mainstream.
This is not financial advice.