What is cryptocurrency? Complete guidelines for beginners.

Adnan Ali
4 min readApr 19, 2023

What is the cryptocurrency for beginners?

Cryptocurrency for beginners is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Cryptocurrency is decentralized, meaning it is not issued by any central authority such as a government or bank and can be transferred directly between two parties without the need for a third-party intermediary. Examples of cryptocurrency include Bitcoin, Ethereum, and Litecoin.

Cryptocurrency Shape

How does cryptocurrency work?

1. Decentralized: Cryptocurrencies are decentralized, meaning they rely on a distributed ledger instead of a central authority to keep track of transactions.

2. Transparency: All transactions are recorded on the distributed ledger and can be viewed publicly.

3. Security: Cryptocurrencies use cryptography to secure transactions and ensure the network remains secure.

4. Immutability: Cryptocurrencies are designed to be immutable and resistant to manipulation.

5. Pseudonymity: Users can remain anonymous when making transactions.

6. Limited supply: Cryptocurrencies have a limited supply, meaning the number of coins available is predetermined and finite.

7. Divisibility: Cryptocurrencies are divisible, meaning they can be broken down into smaller parts for easier transactions.

8. Programmability: Cryptocurrencies are programmable, allowing for advanced features such as smart contracts.

Type of Cryptocurrency?

Types of cryptocurrencies include Bitcoin, Ethereum, Ripple, Litecoin, Monero, Dash, Zcash, Dogecoin, and more.

How beginners can Purchase Cryptocurrency?

1. Choose a cryptocurrency exchange: Decide which cryptocurrency exchange you want to use to purchase and trade cryptocurrency. Popular exchanges include Coinbase, Binance, Kraken, and Gemini.

2. Create an account: Sign up for an account on the exchange you have chosen. This will involve providing personal information such as your name and address, as well as proof of identity.

3. Deposit funds: Once your account is verified, you can use the exchange’s interface to deposit funds from your bank account or credit card.

4. Buy cryptocurrency: Use the exchange’s interface to select the cryptocurrency you want to buy and specify how much you want to buy. The exchange will facilitate the transaction and credit your account with cryptocurrency.

5. Secure your cryptocurrency: Transfer your cryptocurrency to a secure wallet, either a hardware wallet or a software wallet. This will protect your cryptocurrency against theft and hacking.

what are the platforms for beginners to learn cryptocurrency?

  1. Binance Academy
  2. Harvard Business School

3. Udemy

Fraud and deceit involving cryptocurrencies?

Cryptocurrency fraud and deceit often come in the form of fraudsters attempting to steal funds, as well as fraudulent ICOs (Initial Coin Offerings). These fraudulent activities are often difficult to spot and can cause significant losses for investors. It is important to do thorough research on any cryptocurrency investment before committing funds. It is also important to make sure the wallet you are using is secure and to never send funds to an address without verifying the source. Always be aware of any red flags that may indicate a scam such as promises of guaranteed returns, unsolicited requests for funds, or requests to send cryptocurrency to an anonymous address. Finally, always be alert to any suspicious activity involving your cryptocurrency wallet or accounts.

The Most Popular Cryptocurrencies for Beginners?

The best cryptocurrency for beginners is Bitcoin. Bitcoin is the most popular and widely traded digital currency in the world. It is also the most secure and private digital currency, making it an ideal choice for those who are looking to get started in cryptos. Additionally, there are many other cryptocurrencies available, such as Ethereum, Litecoin, and Ripple, which can be explored as a beginner.

What are the benefits of Cryptocurrency for Beginners?

1. Low Transaction Fees: Cryptocurrencies typically charge very low fees for transactions and transfers. This makes them ideal for sending money abroad, as the fees are often a fraction of those charged by traditional financial institutions.

2. Increased Security: Cryptocurrency transactions are secured with the help of cryptography, making them virtually impossible to counterfeit or double-spend. This also adds an extra layer of security for those looking to store their funds.

3. Fraud Protection: As cryptocurrency transactions are irreversible, merchants are protected from fraudulent chargebacks that are common with credit cards.

4. Accessibility: Cryptocurrency networks are accessible to anyone with an Internet connection, making them a great option for those who don’t have access to traditional banking services.

5. Speed: Cryptocurrency transactions are typically much faster than those with traditional banking institutions. This makes them ideal for those looking to send money abroad or make online purchases.

Are Cryptocurrencies Legal in Pakistan?

No, cryptocurrencies are not currently legal in Pakistan. The State Bank of Pakistan (SBP) has issued a ban on the use of cryptocurrencies in the country, as it is not currently regulated by the SBP. As such, any exchange or trading of cryptocurrencies is considered illegal by the government.

Is crypto haram in Islam?

The Islamic view on cryptocurrency is still being discussed and debated by various Islamic scholars. Some Islamic scholars view cryptocurrencies as being haram (forbidden) due to their use as a form of currency and their potential for speculative investments and gambling. Other Islamic scholars view cryptocurrencies as being permissible, as long as the use of cryptocurrency is for legitimate purposes, such as trading goods and services, and not for speculative investments or gambling. Ultimately, the decision of whether cryptocurrency is permissible or not should be decided by each individual based on their own understanding and interpretation of Islamic law.

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Adnan Ali

I do write fascinating articles on Cryptocurrency, Fashion, Health, Technology, Food and Gaming.