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Beginner's Guide

Cryptocurrency is the new way of doing money, a secure digital currency that is stored, transferred and traded virtually. CryptoConnect has developed a beginner’s guide that helps novice users learn about what cryptocurrency is and how to use it. Our step by step guide covers every step from what digital currency is, where to get a virtual wallet, how to buy digital currency and everything in between.

Bitcoin is a cryptocurrency and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto.It was released as open-source software in 2009.

The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency.

Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services

Ethereum (ETH) is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality, which facilitates online contractual agreements. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. "Gas", an internal transaction pricing mechanism, is used to mitigate spamand allocate resources on the network.

Litecoin (LTC) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. While inspired by, and in most regards technically nearly identical to Bitcoin (BTC), Litecoin has some technical improvements over Bitcoin, and most other major cryptocurrencies, such as the adoption of Segregated Witness, and the Lightning Network. These effectively allow a greater amount of transactions to be processed by the network in a given time, reducing potential bottlenecks, as seen with Bitcoin. Litecoin also has almost zero payment cost and facilitates payments approximately four times faster than Bitcoin.

Everyday more major companies are accepting Digital Currency as a payment method. The following is a list of retailers accepting digital currency:

  • Home Depot
  • Amazon
  • Subway
  • Whole Foods
  • Kmart
  • Tesla
  • Victoria’s Secret

  • For a complete list please click here

When an individual wants to send digital currency to another individual, a value is sent from the sender’s wallet to the receiver’s wallet. The wallets have a secret piece of data called a private key protecting sender and reciever during thier transaction. The information is transferred from one wallet to another through a safe encrypted process and mathematically proves that the transaction is correct. The receiver sends the sender their “Bitcoin Address” which allows the sender to program in the value and location to send to the receiver through this secure network.

A Blockchain is a massive virtual database, basically a ledger of records that is arranged in data bunches that are called "blocks". All transaction history on this ledger is always stored and recorded and the information is stored and recorded. The information is stored throughout this virtual system ensuring that the records can never be tampered with. Essentially, a Blockchain is an independent, completely transparent and permenant database that is stored in multiple locations and is shared equally at all moments by the public.

Bitcoin isn't mainstream, but maybe very soon it will be the only form of currency out there. Everyday more and more major institutions, banks, retailers and consumers are using this new money system, which is lending credibility to the digital currency. To date there is approximately $40 Billion USD in cryptocurrency circulating through the Blockchain making it a truly disruptive economic force. So is it safe? The answer is that the 256 bit encryption which the Blockchain technology utilizes is impenetrable, making it a safe technology that cannot be hacked.

There are several ways to cash out or convert your digital currency to cash.

CryptoConnect will gladley exchange cash or cheque for your bitcoins. Certain limits and miniums are applicable. Please contact [email protected] for more info

Direct trades: Direct trades can be performed through direct trade selling platforms like Coinbase and LocalBitcoins.

Exchange trades: An individual can sell bitcoins by registering on an online exchange. Once the individual verifies their identity they can participate on the exchanges as sellers.

The exchanges are intermediaries that hold the participant’s funds. The seller places a “sell order, while the buyer places a “buy order”, they both state the volume and the type of currency the wish to sell the bitcoin (or any cryptocurrency) in and the price per unit that it should be sold for.

Once an individual places a matching buy order the exchange will proceed and the transaction will be processed. The currency will then be credited into the sellers account.

Sending money abroad can often be a terribly time consuming and expensive transaction. A bank to bank wire of funds can take days if not weeks, while sending a money transfer with a major firm like Money Gram or Western Union can be faster it can be expensive up to, 5 - 20% transaction fees and often times you loose even more on the currency exchange.

Sending money abroad through cryptocurrency can be a fast and cheap solution to bank and money transfers. As mentioned earlier cryptocurrencies are not tied to any single currency or country so transfers can be made securely and instantly through the Blockchain network.