What Is Cryptocurrency
Cryptocurrency a type of money or asset (operating through the internet) that is electronically created, used in transactions and stored without the involvement of banks or national governments in most cases. Cryptocurrency transactions or exchange between two people are secured by other people witnessing and confirming that the exchange has occurred and then the transaction is recorded and kept on an internet record called the blockchain for everyone who wants to verify it to see. The transaction or exchange information is protected by mixing the information with a special code so that it cannot easily by changed by other people.
In a nutshell, a cryptocurrency wallet is your own personal bank.
You can keep your cryptocurrency (proof of transaction) on paper, on a flashdrive/pendrive, on your computer, on your phone, on special devices or on internet wallets created by other companies. Storing on paper, flashdrive, or special devices not connected to the internet is known as cold storage. Storing on your phone, pc or internet wallet is known as hot storage.
Keeping your cryptocurrency on internet wallets, pc or phone (hot storage) is not the safest because those wallets may go down with the company or with your computer/phone when hacked. However since the cryptocurrency transactions require the internet, computer or phone for doing transactions, keeping them on the internet wallet, computer or phone makes it easier to access them and do transactions with them.
Getting A Wallet / Account
It is very easy to get a cryptocurrency account of your own.
Internet Based Wallets
There are several online wallets that support multiple currencies such as HolyTransactions though at the time of writing, HolyTransactions does not appear to support Tether – USDT (which is a coin with a similar value to the dollar. i.e. 1 tether is supposed to always be about 1 dollar). You may also use a trading platform such as Cryptopia, Binance or Remitano (recommended) to store in the short-term and for transactions / trading.
Android Wallets (Recommended)
There are several Android and IOS based wallets for your phone that you can use. Coinomi wallet app is one android based wallet that supports Tether – USDT (which is a coin with a similar value to the dollar. i.e. 1 tether is supposed to always be about 1 dollar). Coinomi supports several other coins.
- Here is how to install coinomi wallet on your phone; Installing coinomi wallet.
- Here is how to add Tether USDT to your coinomi wallet; Adding tether support to your coinomi wallet.
Putting Money In Your Cryptocurrency Wallet
You can fund your cryptocurrency wallets by exchanging cryptocurrency with your physical cash (fiat) be it dollars, cedis, euros etc. You can simply buy cryptocurrency from anyone who has it and is willing to trade for fiat. There are various exchanges where you can trade one currency for another, however some easy options include Remitano (recommended), localbitcoins, payplux, Bitpesa
- Setup, Send and receive on coinomi
- How to setup and use remitano
- Buying cryptocurrency on remitano
- How to deposit and withdraw on remitano
- What is cryptocurrency