ALL YOU NEED TO KNOW ABOUT CRYPTOCURENCY IN NIGERIA, HOW IT WORKS AND HOW TO USE IT

Cryptocurency/bitcoins is simply a digital money that cannot be seen, designed to be secure and are often anonymous.

 In a simpler form, cryptocurency exist only on the internet or web and uses cryptography. It has been around since world war II. It was created with the need to secure communication.

With the emergence of the digital world and the evolution with elements of mathematical theory and computer science, it has been a way to secure communications, information and money online.

Bitcoin is the first known cryptocurrency and was created in 2009 with thousands available on the internet. Recently, one bitcoin is almost equivalent to $7,500.

HOW DO CRYPTOCURENCIES WORK?

Cryptocurrencies makes use of decentralised technology that enables users make secure payments and store money without the use of names or banks. They record and update all transactions made by the currency holder using a public ledger called 'blockchain'.

Cryptocurrency units are created through mining. This is often done using computer power to solve some complicated mathematical problem, earning coin in the process.

Cryptocurrencies are bought from brokers who store and even spend them using cryptographic wallets.

Read: How To Start Dropshipping Business In Nigeria.

WHAT ARE THE MOST COMMON TYPE OF CRYPTOCURRENCIES?

1. BITCOIN: This is the first known and also the most traded cryptocurrency even upto date. It was created/ developed in 2009 by Satoshi Nakamoto. It has a market capitalisation value of around $128 billion as of May 2018.

2. ETHEREUM: This is the currency used in the ethereum blockchain and the second most used and popular cryptocurrency. It was developed in 2015 and has a market capitalisation value of around $56 billion.

3. RIPPLE: Ripple is another well distributed ledger system that was founded in 2012. Ripple can be used to track more kinds of transactions, not just of the cryptocurrency. The company behind it has worked with banks and financial institutions, including Santander. It has a market capitalisation of around $24 billion. 

4. LITECOIN: This is similar to bitcoin but have evolved quickly to develop new innovations. It allows faster payments and processes. It has a market capitalisation of around $6 billion.

WHY NIGERIANS SHOULD LOOK INTO CRYPTOCURRENCY.

Cryptocurrencies are secure and are always anonymous. They are so secured that transaction can never be faked or even reversed. They are available to everyone with its decentralised nature. One of its downside is only few stores accept it for transactions.

With the current boom in the cryptocurrency market, most people now see it as an area to invest in. Investors in cryltocurrencies are always advised on the risks involved. The value of cryptocurrency might fall as it's rising now, which will lead to many investors loosing money

Cryptocurrencies on the dark web are also associated with illegal activities. This results from the level of anonymity they provide. 

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