CONTENTS OF BLOG POST
- What are cryptocurrencies?
- Why are cryptocurrencies so popular?
- Where can I buy cryptocurrencies?
- How to use cryptocurrencies?
- Why would I want to use cryptocurrencies?
- What is a Visa Card?
- How does the Binance Visa card work?
- How do I sign up for a Binance account?
What are Cryptocurrencies?
In short cryptocurrencies are a new form of money that might eventually replace the old type of paper money. Cryptocurrencies are digital assets or virtual currencies that are secured by cryptography, a security technology that makes it impossible to counterfeit or double-spend the cryptocurrencies.
Cryptocurrencies are usually created through individuals or companies through a process called mining. Miners compete with each other using dedicated computer power to solve a mathematical problem, whoever finds the solution to the maths problem receives the newly created (minted) cryptocurrency. Each cryptocurrency usually has a maximum amount of coins that can ever be mined and once that threshold is met there can never be any more coins minted. These mined coins are known as decentralised cryptocurrencies, but there are also centralised cryptocurrencies that are created by an individual issuer prior to issuance.
Most of these cryptocurrencies use a distributed network of computers that maintains a ledger (computerised database) of who owns what and they use a technology called blockchain to achieve this. The ledger keeps a record of individual cryptocurrency ownership and also to verify transactions on the blockchain when coins are sent from the owner to the receiver. Once the transaction is accepted onto the blockchain it creates an immutable record that cannot be changed. The immutable blockchain acts as an open public financial database.
The cryptocurrency coins are stored virtually on a thing called a Crypto Wallet and uses cryptography in the form of a hash number to secure and send the coins for payment of services or goods. Cryptocurrencies are designed to be used as a medium of exchange just like traditional Fiat currencies. It is important to realise that not all of these cryptocurrencies are created equally, some have a higher number of coins that can be minted and some are minted in a centralised fashion before issuance and in some of these types of coins it is also possible for the centralised authority to mint more coins at their discretion.
The most popular and well-known of these cryptocurrencies is called Bitcoin. Bitcoin is popular because it was one of the first to be created and solved many of the inherent problems that used to exist in creating a digital currency. It is also popular because there can only ever be 21 Million coins mined and it uses decentralised mining to achieve this. Unlike in traditional Fiat currencies, there is no central authority in Bitcoin and unlike central authorities who can just keep creating fiat currency and devaluing the money due to supply and demand, there will only ever be 21 Million Bitcoins. Bitcoin was created in 2009 and there have since been more than 6,000 other cryptocurrencies created.
Why are cryptocurrencies so popular?
Cryptocurrencies are becoming more popular as people find out about them because they primarily take away the centralisation and control over the money supply. When Central Banks keep printing money they devalue the existing money that has already been issued and as a consequence make saving money a harder prospect. The more of a certain fiat currency in circulation the less value is derived due to supply and demand metrics. For example, Diamonds are valuable because of their scarcity (supply and demand). When a centralised authority prints more and more money the value of that money becomes less and less. There are many examples of this oversupply of money in history and the end result is not very pretty! Imagine having a wheelbarrow full of money and only being able to buy one loaf of bread with it. This example has actually happened several times in history and there is no reason why it wouldn’t happen again.
Another reason is convenience. Cryptocurrencies can be sent around the world from one person to another in a very quick time and in a secure fashion. There is no need to wait for third-parties and pay exorbitant fees like can be the case with traditional fiat currencies.
Cryptocurrencies are a new form of money that is not only quick, but it puts you back in control of your finances. As investments, they are very speculative and this can be a good thing or a bad thing depending on how you look at it. Because we are so early in the evolution of cryptocurrencies there is lots of speculative interest as these cryptocurrencies become more popular and investments could go up substantially over the coming years. They could also go down so please be aware of the potential risks involved.
Where can I buy cryptocurrencies?
There are various places that you can purchase cryptocurrencies but for me, the easiest and safest place is a company called Binance, which is a cryptocurrency to cryptocurrency trading exchange. With Binance you can buy and trade cryptocurrencies on a desktop or laptop computer, or alternatively, you could download their mobile(cell) phone application and use the platform directly from your mobile phone. Once you have signed up to Binance you can deposit Fiat (traditional money) and buy various cryptocurrencies. They also have a range of other products like savings accounts that offer interest for storing certain cryptocurrencies on their platform.
Binance is one of the largest exchanges with a daily trading volume exceeding 10 Billion Dollars. The 24-hour trading volume of a cryptocurrency is how much value of a coin has been bought and sold over the course of a day. Binance lists more cryptocurrency pairs than any other cryptocurrency exchange platform and the total for all of those cryptocurrencies per day equals Binance’s total daily trading volume. This is a massive company and is one of the more trusted places to trade cryptocurrencies! It is also beneficial for traders and cryptocurrency projects as it provides enough liquidity for cryptocurrencies that manage to be accepted onto the Binance platform.
Binance is also one of the most secure platforms in the marketplace. In its early days, there were a few incidences of being hacked and Binance has learned from these minor setbacks by increasing security in many ways since then. When these hacks occurred, the owner of Binance, Mr. Changpeng Zhao, covered the losses with his own personal wealth so that nobody suffered any personal losses from the security flaws that allowed the hacks to take place. Mr. Changpeng Zhao is a very well-known face in the cryptocurrency industry and regularly keeps in touch with people on the Twitter Platform, he also creates videocasts to keep people updated about important topics regarding Binance. You can find his Twitter profile by searching for @cz_binance on the Twitter platform.
If you want to buy or trade Cryptocurrencies then Binance is a great place to do this! You can signup for Binance by following this link https://www.binance.com/en/register?ref=15389799
If you need any help with the signup process keep reading and if you still need help just leave a comment below and I will be happy to help.
How to use cryptocurrencies?
To use cryptocurrency, buy some from an online exchange like Binance and choose a digital wallet to keep it secure. You can save it, or use it to purchase goods and services by exchanging your secret codes. Binance provides its own wallet for users at no extra cost. Not all cryptocurrencies will be accepted by traditional vendors as the industry is still in its nascent period.
Bitcoin is the most accepted cryptocurrency and more and more vendors are starting to accept this currency around the world. The value of the cryptocurrencies can go up or down significantly and this will affect their purchasing power. Try to find websites that accept cryptocurrencies and spend your coins with these sites because they are helping the industry to grow. Binance now also offers a Visa card for certain cryptocurrencies!
Why would I want to use cryptocurrencies?
Cryptocurrencies are a borderless means of exchange allowing for instant and cost-effective transactions across the world. There is no waiting, no extra international fees, and no limitations as to who can or cannot send funds to whom or when and where those funds can be accessed.
Cryptocurrencies put you back in control of your own money! Banks can easily decide to freeze your account and deny you access to your money and this just can’t happen with cryptocurrencies. When you own cryptocurrencies you become a sovereign individual who has complete control of your finances instead of leaving it to some third-party.
We’ve all seen what happens when there is a “run” on a bank! A run happens when a bank cannot afford to pay out the money you have stored with them and when people hear about the trouble that this bank is facing they run to the bank and try to get their money out before anyone else, so they can ensure they are actually able to get their money out in time. This leads to more and more customers putting withdrawal pressure on the troubled bank and speeds up the process of the bank’s decline. The people who don’t run to the bank to withdraw their money end up losing it!
When you have full control of your money – like in cryptocurrency – you don’t have to worry about bank runs and bank bankruptcies because you have full control of your cryptocurrencies in your digital wallet. Nobody can access that money apart from you! If you want to send money to someone it is almost instant and there is nobody telling you that you can or cannot send money to whoever you want.
What is a Visa Card?
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world. A Visa Card is a debit, credit, or pre-paid card issued by Visa Inc. and is used to get access to the money or credit in your account, either through online merchants or brick and mortar stores who accept Visa Card and also from Automatic Teller Machines (ATMs), sometimes called cash machines, where you can draw out cash instantly. The Visa Cards are issued by financial institutions who have decided to partner with Visa Inc. It is the financial institution that decides the terms that these cards will use, so expect variations of charges and offers from each issuer. They are accepted in over 200 countries and territories across the World, which makes them by far one of the largest payment networks in the World.
How does the Binance VISA card work?
The Binance visa card is a recent innovation from Binance, which has partnered with Visa Inc. to allow you to use your cryptocurrencies more easily. The Binance visa card is basically the same as any other visa card but it allows you to transfer certain cryptocurrencies that you have purchased or stored on the Binance platform.
So, for example, let’s say you have Bitcoin coins on the Binance platform and really need to make a purchase where Bitcoin is not accepted, you would simply transfer that Bitcoin over to the Binance visa card and use the card to make a purchase from one of the 60 million places that accept visa card.
The Binance Visa card is currently only available in EEA countries right now, but I imagine it won’t take that long for them to start targeting other markets such as Russia, America, and the Middle East. You could also go to any visa card ATM and get the cash out of the machine. The card automatically converts into your country’s currency and will deduct the Bitcoin equivalent that you have withdrawn from your balance based on the value of the Bitcoin at the time of purchase(plus a small transaction fee).
There are only currently five currencies that you can charge the Binance debit card with and these are:
This makes it very easy to spend your cryptocurrency even if it isn’t accepted by some vendors! In addition, you can now link your Binance Card virtually with Google Pay and Samsung Pay. Binance visa card also offers up to 8% cash back on purchases!
How do I sign up for a Binance account?
Visit Binance Website here: https://www.binance.com/en/register?ref=15389799
After pressing the link above you will be redirected to the Binance website. Make sure to bookmark the site because there have been cases of phishing attacks whereby unscrupulous hackers create a website that looks exactly like the real site. By bookmarking the site you can access it in the future without worrying about if you are on the correct website.
Press in the top-right corner of the website where it says “Register” and complete the signup information shown below.
Once you click “Register” you will be directed to the registration page below. Fill in the details and don’t forget to choose a memorable and secure password. Keep a note of the password safe from prying eyes!
You will receive an email confirmation to complete the signup process. You will have to verify yourself using some forms of identification to complete the process, but it is all very straightforward and easy.
That’s it! You are now ready to purchase cryptocurrency or send cryptocurrencies that you already own over to your Binance account to save, trade or exchange.
Good luck and happy investing! Welcome to the money revolution.