No matter if you’re taking a walk to a park near your house, waiting at a bus stop, or listening to your parents at dinner.
It’s almost impossible not to hear people talking about Cryptocurrencies.
And believe it or not, I know the feeling of curiosity and the urge to learn new things!
Almost all of us try to stay up to date and learn the new topics happening in the world. That’s because we like to have a say in the upcoming related conversation with our friends or family.
The digital universe is growing too fast to be stopped, and the more we learn about it, the more we find out how much we don’t know!
But this doesn’t mean we have to stop learning. All it takes is to take tiny baby steps towards studying the basics! And as always, YounGo Money is here to take your hands and make this process easier! Let’s learn about cryptocurrencies in simple words.
The very first question is:
What Are Cryptocurrencies?
To put it in simple words, Cryptocurrencies are digital money! Unlike the regular coin and cash, they are not physical and can’t be touched, but it doesn’t mean they don’t exist! In the transactions made by Cryptocurrencies, no banks are involved. They are also not controlled by the government or one person. With this kind of digital money, people are allowed to make direct person-to-person payments in an all-online environment!
You may even find it interesting that Cryptocurrencies are not legally accepted everywhere.
But if they were, you can easily take care of all your transactions using Cryptocurrencies and pay for the stuff you purchase just like normal money.
Do We have Different Cryptocurrencies?
Yes, we do! Just like other money currencies around the world (Dollars, Euro, Pound, etc.), we have tons of various Cryptocurrencies.
In fact, there are almost 1600 Cryptocurrencies in the world like Ethereum, Ripple, Cardano, Litecoin, etc. I know you can name the most famous one.
You were correct as usual! Bitcoin!
What Is Bitcoin?
Bitcoin, the very first cryptocurrency and the world’s largest one, was created in 2009 by Satoshi Nakamoto, a peculiar and, of course, fake name!
After almost 13 years, we still don’t know for sure who made Bitcoins.
What is Bitcoin Mining?
Mining is the complicated process of creating new Bitcoins.
How Can I have Bitcoins?
Nowadays, there are various ways to get Bitcoins, and the most well-liked method is an online exchange. Rather than that, you can purchase it at its special markets or ATMs, and there are also some online games offering you Bitcoins as a reward.
Very Important Tip: This article is only written with the purpose of helping teenagers get to know Cryptocurrencies. If you’ve ever decided to learn more or enter this world, be sure to consult with your parents or guardians.
What Is so Fascinating about Cryptocurrencies?
Based on what we’ve said so far, you may think, what is all the fuss about just a digital currency? Aren’t they just for online payments?
According to the studies, people find it more practical and better to use these currencies for making a profit (buying, selling, trading, etc.)
Pros and Cons of Cryptocurrencies
Let’s take a look at some ups and downs of cryptocurrency and decide whether it’s a good idea to invest in it or not.
- They are accessible: One of the most significant assets of Cryptocurrencies is that they can be transferred in a blink of an eye. That feature works best when you are travelling to another country and want to shop. That means you will no longer have the headaches of exchanging money.
- Users Can be Anonymous: Well, not completely! But, users are known with specific codes and numbers.
- It’s Transparent: As you know, the transactions are safe, secured and stored in the Blockchain. But it also is transparent, which means you can always be aware of what’s happening in your digital wallet.
Cons of Cryptocurrencies:
- It Rapidly Changes: The prices go up and down like a roller coaster.
- It doesn’t have the Government’s Regulations: As we’ve mentioned earlier, Cryptocurrencies are decentralized and not controlled by a person or government. This feature can be good and bad at the same time. It’s normal to feel that anything without legal protection is in serious danger of scams.
They Use Lots of Energy: The process of mining cryptocurrencies is complicated and needs dozens of computers, power, and as a result, energy! Even many scientists have warned about the disasters it may cause to the environment.
How to help your little siblings learn about Cryptocurrencies
As an older brother, sister, or parent, you may want your little ones to start learning about this topic too. There are lots of fun activities helping you throughout this process.
- Before you start teaching them about Cryptocurrencies, make sure they know all the basics about regular money we use every day.
- Makeup stories with a fictional character that could benefit from the features of Cryptocurrencies. Like the financial profit or a more convenient shopping using these currencies.
- Challenge them with the questions like, “How do you think shopping would look in the near future with cryptocurrencies?”
- To make it even more fun, turn the learning into painting and making crafts. Help them make a Cryptocurrency for themselves.
- Ask them to make stories about Satoshi Nakamoto. Help them with the little clues there are on the internet. Ask them how he looks in their mind etc.
The Final Words (Mostly with Parents!)
There is a strong possibility that Cryptocurrencies will remain in our lives, and as a result, their growing influence on the world’s economy is inevitable. It is vital to guide your children through the path to learn and study cryptocurrency as it may impact their future so much.
Check the resources they use and make sure they are reliable. Help them understand that the cryptocurrency universe is risky and needs a lot of time and consideration before making a move.