BLOCKCHAIN 101: Getting Started in Cryptocurrency

If you're reading this, odds are you're new to the crypto world - which can seem like a daunting task to the uninitiated. We've put together this guide to walk you through the process and explain the lingo in hopes of making your venture into blocks and tokens a little less painful.

- Chris Mellides

A blockchain is a form of distributed ledger technology (DLT) that logs information. It's kept secure and is accessible to participants connected to the network of computer systems on the blockchain.

Each time there is a new transaction, that information is made available on participants' ledgers. This information is encrypted and cannot be changed. Often, these participants remain anonymous or operate under various pseudonyms.

A DLT is a decentralized database that is created and used by several of these participants. They take advantage of the DLT and use it as a means of handling digital money, which in the past was a concept that was viewed as being too risky and little was known about its true value.

It wasn't until the advent of Bitcoin when the volatility of the digital currency market began to normalize, which drew interest from investors.

Creating a currency out of thin air creates questionability as to the true value of that currency. Before Bitcoin, trust in cryptocurrency was hard to come by.

Bitcoin uses blockchain databases to solve this problem. This widely accepted form of cryptocurrency is managed by many participants who cannot artificially increase or decrease its value.

Previously, older databases were under the control of a single person in charge who, in theory, could inflate the value of the digital currency he or she creates and become a millionaire overnight.

Getting started in cryptocurrency is easier than you think, and before you get started it’s important to understand how you want to store your first “coin.” To do this you’ll need to create a crypto wallet.