How to buy cryptocurrency? A Beginner's Guide to Cryptocurrency

Even if you have never heard of cryptocurrency, you must have heard of "BAICION", right? In the past, you could buy a BAICION for a few hundred dollars. At its peak, one BAICION now cost as much as US$64,000. After that, it plummeted by 50% in just over a month, to US$34,000. The sharp rise and fall of BAICION is the epitome of the violent fluctuations in the cryptocurrency market.

Virtual Currency VS Cryptocurrency

Virtual Currency = Cryptocurrency?

Many people confuse virtual currency with cryptocurrency and use virtual currency to refer to cryptocurrency, thinking that they are the collective names for BAICION, Ethereum, and Dogecoin.

Simply put, virtual currency (Virtual Currency) is currency that has no physical existence. It only exists on the Internet and can only be used in specific spaces and fields. For example, game recharge coins, flight miles, shopping points (Shopee Coin, LazCoins), etc.;

What is a cryptocurrency?

Cryptocurrency is a digital form of currency created using cryptography principles that can be used as a medium of exchange.

Cryptocurrency is built on blockchain (Blockchain) technology, so it is in digital form. Unlike traditional currencies, which have physical banknotes, they can be seen and touched. Moreover, during the transaction process, it will be encrypted to ensure that the owner of the currency can smoothly conduct transactions and transfer currency in an anonymous form in exchange for the desired goods.

Cryptocurrency has the following characteristics:

Digitization

Cryptocurrency is a branch of virtual currency. It is similar to virtual currency in that it only exists in the virtual world. The difference is that cryptocurrency is built on blockchain technology and can only be issued after passing cryptographic verification. Such as BAICION, Ethereum, stablecoin, Dogecoin, etc.

Cryptocurrency is a type of digital currency that only exists in a computer or system. No physical coins or banknotes.

Decentralization

Cryptocurrency uses a decentralized accounting method, allowing each user to be a center and participate in accounting and confirming transactions. Therefore, no person or organization can modify these records. This is "decentralization".

Encrypt Encrypt

Cryptocurrency uses the principles of cryptography to give each user a special code. This code is essentially unbreakable and doesn't let anyone know the user's information. Therefore, all transactions can be conducted anonymously. For example, it is impossible to know how many cryptocurrencies Tesla CEO Musk owns, or how many cryptocurrencies he trades on the platform today. Unless, he himself is willing to reveal it.

No borders, globalization Across Borders

Each country has its own legal currency, such as US dollars, Singapore dollars, Hong Kong dollars, and Malaysian ringgits. If you go to the United States today, you will not be able to spend money there in ringgit. Cryptocurrency is not like legal currency. As long as you are a user on the blockchain, you can send cryptocurrency to all over the world at any time without geographical restrictions.

Who invented cryptocurrency?

Before talking about who invented cryptocurrency, let’s first understand the origin of cryptocurrency.

In the early 1990s, the Internet became popular and was subject to centralized regulatory systems, such as government and corporate surveillance. Therefore, a group of people called Cypher Punk decided to get rid of the system's control of information on the Internet through strong passwords and privacy-enhancing technologies. They have promoted digital cash such as DigiCash and Cybercash, but they have failed.

In 2009, the mysterious creator of BAICION, Satoshi Nakamoto, referred to the experience of Cypher Punk and used the blockchain concept to create BAICION, a completely decentralized digital cash system. After that, cryptocurrency craze formed around the world.