Cryptocurrency Trading Basics: A Complete Guide for Beginners

Understanding Cryptocurrency and Blockchain

Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on a technology called blockchain. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are typically decentralized and operate on distributed networks.

Key Cryptocurrencies for Beginners

• Bitcoin (BTC): The first and most valuable cryptocurrency, often referred to as digital gold.
• Ethereum (ETH): A platform for decentralized applications and smart contracts, beyond just a currency.
• Binance Coin (BNB): Native token of the Binance exchange, widely used for trading fee discounts.
• Solana (SOL): Known for high speeds and low transaction costs, popular for NFTs and DeFi.

How Blockchain Works

Blockchain is a distributed, immutable ledger that records all transactions across a network of computers. Each block contains a number of transactions, and once a block is completed, it's added to the chain in chronological order. The decentralized nature of blockchain makes it secure and resistant to fraud.