Infographic on Understanding How Cryptocurrencies Work

Infographic on Understanding How Cryptocurrencies Work December 15, 2020 December 15, 2020 Paul Butcher
Posted on Dec 15, 2020 : Updated on December 15, 2020 by Paul Butcher

You will certainly be going on a very sharp learning curve if and when you start researching how cryptocurrencies work, however to make your life easier I have compiled the following infographic that should walk you through the basics!

Blockchain

All cryptocurrencies are going to have a blockchain, and that is simply a digital ledger that records all transactions

Verifies Movement of Coins

Proves Ownership

Transactions cannot be altered

Digital Wallet

To gain access to your coins and tokens stored on a blockchain you must get a digital wallet.

Free to Download

Mobile Wallets Available

High Level of Security

Can Store Different Cryptocurrencies

Security of Cryptocurrencies

You must always keep you digital wallet details safe and secure, as without them you cannot access your cryptocurrencies on the blockchain.

Log in Name

Password 

Word Seed

Benefits of Using Cryptocurrencies

Move Coins Anonymously

Small or Large Transactions

Low Cost Transactions

Digital Currency Exchange

To be in a position to start to use cryptocurrencies you will need a digital wallet and then make use of a digital currency exchange to perform the following transactions.

Buy Cryptocurrencies

Sell Cryptocurrencies

Trade Cryptocurrencies 

Value of Coins and Tokens

There are lots of different factors that can and will affect the value of cryptocurrencies and here are some things that could make them rise or fall.

Supply and Demand

International Incidents

More Coins Being Mined

Uses of Cryptocurrencies

There are loads of different things you can use cryptocurrencies for and I will now enlighten you on what most people use them for.

Long or Short Term Investments

Paying for Goods

Storing Excess Funds

Paying for Services

Gambling Activities

How to Pay for Cryptocurrencies

When you wish to buy cryptocurrencies depending on where you choose to buy them several different payment methods are available.

Cash

Debit Cards

Other Cryptocurrencies

Bank Wires

Web Wallets

How to Sell Cryptocurrencies

If you do own any volumes of any cryptocurrencies there are several different ways you can sell them and turn them into cash.

Cryptocurrency ATM’s

Digital Currency Exchange

Peer to Peer Transactions

Sources

https://en.wikipedia.org/wiki/Cryptocurrency

https://lifehacker.com/how-to-buy-cryptocurrency-1821935329

https://www.entrepreneur.com/article/305859

https://www.theguardian.com/technology/2018/jan/29/cryptocurrencies-bitcoin-blockchain-what-they-really-mean-for-our-future

Altcoins vs. Tokens: What’s the Difference?

https://futurism.com/cryptocurrency-future-money-bitcoin/

https://www.coindesk.com/information/what-can-you-buy-with-bitcoins/

https://www.cfr.org/backgrounder/cryptocurrencies-and-national-security

https://cointelegraph.com/bitcoin-for-beginners/what-are-cryptocurrencies

https://www.wired.com/story/how-to-keep-bitcoin-safe-and-secure/

How to buy Bitcoin & other Cryptocurrencies