KEMBAR78
Cryptocurrency Notes | PDF
Scribd
Upload
207 views2 pages

Cryptocurrency Notes

Cryptocurrency is a decentralized digital currency secured by cryptography, operating on blockchain technology. Key features include limited supply, transaction transparency, and various popular cryptocurrencies like Bitcoin and Ethereum. Investing can be done through methods like HODLing, trading, and staking, but it also carries risks such as volatility and security threats.

Uploaded by

henryhb217
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
207 views2 pages

Cryptocurrency Notes

Cryptocurrency is a decentralized digital currency secured by cryptography, operating on blockchain technology. Key features include limited supply, transaction transparency, and various popular cryptocurrencies like Bitcoin and Ethereum. Investing can be done through methods like HODLing, trading, and staking, but it also carries risks such as volatility and security threats.

Uploaded by

henryhb217
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Cryptocurrency Notes

1. What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. Unlike
traditional currencies, it operates on decentralized networks based on blockchain
technology.

2. Key Features of Cryptocurrency


• Decentralization – No central authority (like banks or governments) controls it.

• Blockchain Technology – A public ledger that records all transactions.

• Security – Uses cryptographic encryption to secure transactions.

• Limited Supply – Most cryptocurrencies have a fixed supply (e.g., Bitcoin has a max supply
of 21 million coins).

3. Popular Cryptocurrencies
• Bitcoin (BTC) – The first and most well-known cryptocurrency.

• Ethereum (ETH) – Known for smart contracts and decentralized applications (DApps).

• Binance Coin (BNB) – Used on Binance Exchange.

• Solana (SOL) – High-speed blockchain for decentralized finance (DeFi).

• Ripple (XRP) – Focuses on fast and low-cost international transactions.

4. How Cryptocurrency Works


• Transactions are verified by a network of nodes (computers).

• Each transaction is recorded on the blockchain, making it transparent and irreversible.

• Miners (Proof of Work - PoW) or validators (Proof of Stake - PoS) secure the network.

5. Ways to Earn or Invest in Crypto


• Buying and Holding (HODLing) – Long-term investment strategy.

• Trading – Buying and selling crypto on exchanges for profit.

• Staking – Earning rewards by holding and validating transactions on PoS blockchains.

• Mining – Using computing power to validate transactions (mainly for Bitcoin).

• Yield Farming & Liquidity Providing – Earning interest by providing funds to DeFi
platforms.
6. Risks & Challenges
• Volatility – Prices can rise or fall quickly.

• Security Risks – Hacking, scams, and fraud.

• Regulation – Different countries have different crypto laws.

• Scams & Rug Pulls – Many fraudulent projects exist.

7. Best Practices for Crypto Safety


• Use a hardware wallet (Ledger, Trezor) for long-term storage.

• Enable two-factor authentication (2FA) on exchanges.

• Never share your private keys or seed phrase.

• Avoid clicking on suspicious links or scams.

You might also like