What is cryptocurrency? A beginner's guide

This post was originally published by Deriv on 13 Jan 2022

Most of us are familiar with the digital currency concept without realising it. We pay without seeing a single coin or banknote when we use our bank cards to buy goods and services. So, the money we use daily is digital, in a way. 加密貨幣也是一種數字貨幣，它變得越來越熱門，越來越多的頭條新聞被吸引。 However, it's an entirely different concept.

在深入了解交易之前，讓我們探討一些有關這種新虛擬貨幣的基本資訊。

What does cryptocurrency mean?

Cryptocurrency is a digital currency with no physical form and is entirely independent of the traditional banking system. It's an exciting technological breakthrough that has revolutionised how we use money. 處理人與人之間的支付而不需要第三方 (如銀行) 的介入，與我們以前處理金錢的方式完全不同。

加密貨幣不是由任何政府發佈的；它使用區塊鏈技術，保持在去中心化的全球計算機網路中記錄所有交易。 The data verifying these transactions is cryptographically encoded, which means one party transforms it into a code in a way that only the intended party can decode it and view, and that's where the "crypto" part comes from.

What is cryptocurrency mining?

Mining is a process of verifying cryptocurrency transactions. Miners encrypt every transaction and collect them together in groups that are called blocks. These blocks are later chained together, which is called the blockchain. 

Once a block is thoroughly verified and added to the blockchain, it generates new coins. 因此，礦工會取得新產生的硬幣和支付給區塊中所有交易的交易費。 It's a way of earning crypto without buying it and the most appealing reason to become a miner.

Is cryptocurrency safe?

The complexity of blockchain technology makes cryptocurrencies highly resistant to hacking. 

首先，它是去中心化的——數據與整個網路共享，而不是儲存在一個地方，這使得黑客更難找到來源。

而最重要的是，所有交易和內部資訊的密碼加密保護幾乎使得瀏覽或更改數據變得不可能。 

Why trade crypto?

Now that we know how cryptocurrency works, let's find out how you can trade it. But first of all, why is crypto trading such a hot topic? More and more traders get involved in crypto trading daily for different reasons. It may be just a curiosity for some of them, but there are undeniable benefits to it, too:

• 隨時交易。
• High volatility – prices change rapidly, giving traders a range of opportunities, not eliminating the risk. 
• 高流動性使得將最熱門的加密貨幣轉換成現金變得容易。 

Let's see how you can take advantage of these benefits.

Where do beginners start with cryptocurrency trading?

The starting point depends on the type of trading you choose. The first option is to own the cryptocurrency you are going to trade. In this case, you need to exchange fiat money for the cryptocurrency of your choice on an exchange platform.

你還需要建立一個數字錢包以保護你的加密貨幣安全。 這基本上表示只需在網站或應用程序上建立一個帳戶。 There are plenty of options available on the crypto market. It's always good to compare a few options to determine what works better for you.

大多數錢包也用作掉期服務，以使此過程更加輕鬆。 這表示你可以在同一個地方買、賣和持有你的加密貨幣。

The other way to trade cryptocurrency is to speculate on its price movement without buying it. This type of trading can be done with Multipliers digital options or CFDs. 查看 初學者加密貨幣交易 的博客，了解更多如何用這些交易類型進行加密貨幣交易的資訊。

Which cryptocurrency should you choose for trading?

As of February 2022, there are around 10,000 cryptocurrencies listed. Most cryptocurrency trading platforms offer quite a few options to choose from. The top 10 are measured by market capitalisation, according to CoinMarketCap.

1) 比特幣 ($8279 億)  

2) 以太坊 ($3671 億)  

3) 泰達幣 ($786 億)  

4) 幣安幣 ($700 億)  

5) 美元幣 ($526 億)

6) 瑞波幣 ($393 億)

7) 卡達諾 ($359 億)

8) 索拉那 ($318 億)

9) 雪崩 ($230 億)

10) 泰拉 ($220 億)

But what are other substantial differences between these virtual currencies, apart from the market capitalisation? In a nutshell, the main differences lie in technical characteristics. Here is an example of a brief comparison of the current three largest cryptocurrencies. 

If you are new to cryptocurrency trading, starting with Bitcoin – the biggest and most well-known digital coin is a good idea. 一旦您變得更舒適，您可以隨時擴展並升級您的交易策略，將其他加密貨幣納入您的投資組合。 

Is cryptocurrency the future of money?

It's hard to predict if cryptocurrencies are here to stay. Some consider them the future of all transactions and potentially the main form of currency in years to come, while others predict an inevitable crash. 但無論未來的結果如何，你都可以跟隨它的熱門潮流，並試圖在其持續期間賺取額外的收入。

如果你有更多問題，在我們的下一篇博客中，我們準備了幾個示例，以說明如何在 現在參與加密貨幣活動中獲益。