Key Takeaways
Cryptocurreny began with Bitcoin on 1/3/2009.
Cryptocurrency is built using decentralized blockchains.
Cryptography is used in securing crypto coins and tokens.
There are thousands of cryptocurrencies.
Crypto is bought, sold, and swapped on crypto exchanges.
Every crypto asset purchased has a unique address.
Access to crypto addresses =Ownership of crypto assets
January 3rd, 2009
The date above marks the birth of Bitcoin, the world’s first crytocurrency. This digital asset was built using blockchain technology and is meant to be a total replacement for fiat currency, according to the paper released by its creator, Satoshi Nakamoto.
Decentralization
Bitcoin is decentralized meaning it doesn’t have a central authority controlling it. This is completely opposite to our current, centralized banking system. The computer network operating Bitcoin is distributed around the world.
Crypto Today
Cryptocurrency has come a long way since the initial release of Bitcoin. There is now a huge crypto market with thousands of other digital coins and tokens called, “altcoins”. I invest in and trade numerous digital assets, but my personal favorite is Nano.
Ownership & Security
We own crypto via unique crypto addresses. When you create an account with a crypto exchange, such as Coinbase or Binance, and purchase a crypto asset, it is tied to a specific address that corresponds to your account. Each asset has a unique address.
Exchanges are custodial meaning they technically own the crypto you purchase using their service. They maintain ownership of the crypto as the legal custodian until you decide to remove the assets from their service. This is done by sending the assets from the exchange to a crypto wallet, such as Exodus Wallet.
Whoever controls access to the address of any asset owns it, so it’s highly advised to take account security seriously. There are multiple ways of securing digital assets, like identity verification, two-factor verification, and offline storage devices.
Conclusion
To sum it all up: Cryptocurrency is the future for digital forms of exchange. There are already ideas out there about rebuilding the internet with blockchain technology as the foundation. Cryptocurrency offers the people of the world a decentralized form of exchange and means of sharing value. Some currencies aren’t bringing much technological advancement to the table, but have still managed to become culturally defining, such as Dogecoin.
To the moon! 🌝