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This column was originally published in November 2021.<\/em><\/p>\n Despite Bitcoin launching way back in 2009, it\u2019s only until recently that you can\u2019t turn on the news or browse the web without coming across some mention of cryptocurrency.<\/p>\n I got so many questions from my readers and national radio show listeners that I wrote an e-book about crypto to help. I demystify digital currency, mining, and how to get started trading. Tap or click here to get your copy on Amazon.<\/a><\/p>\n Sadly, I also hear from people that got fooled by one crypto scam or another. Where there is money, criminals are waiting. Tap or click for five clever crypto scams making the rounds right now and steps to stay safe.<\/a><\/p>\n Before we get started, know this is not financial advice. The crypto world is volatile, and you should never risk money you aren\u2019t comfortable losing. Now, let\u2019s take a look at some of the most common lingo:<\/p>\n\n CRYPTO COLLAPSE?:<\/strong>Why is crypto down so much? Uncertainty in traditional markets and Fed concerns, experts say<\/a><\/p>\n STOCK MARKET QUESTIONS:<\/strong>Worried about the stock market? Ask yourself these 3 questions to protect your finances.<\/a><\/p>\n Every cryptocurrency transaction is processed, verified, and recorded on a virtual ledger known as a blockchain. When someone buys or sells using cryptocurrency, another entry is made on this virtual ledger.<\/p>\n\n Think of the blockchain as a series of boxcars from a train. When a cryptocurrency transaction is made, another boxcar gets added to the train.<\/p>\n The blockchain is decentralized. This means it\u2019s not stored on one machine or even across one network. Instead, the blockchain exists on computers all over the world that are accessible because of the internet.<\/p>\n People and companies help verify each transaction that gets added to the blockchain using their own computer\u2019s processing power on a decentralized peer-to-peer network. Each transaction is timestamped, individually encrypted, and cannot be reversed or changed. Yes, you read that right \u2013 crypto transactions cannot be reversed.<\/p>\n\n Would you rather listen than read? Tap or click for an episode of my podcast, Kim Komando Explains, about everything crypto<\/a>. You’ll also hear first-hand from a crypto miner too.<\/p>\n I know what you\u2019re thinking: \u201cI thought a Fiat was a car.\u201d Not in crypto-land. Fiat money is government-issued currency. If you\u2019re in the United States, that means the U.S. dollar.<\/p>\n Cryptocurrency, on the other hand, is virtual money.<\/p>\n Cryptocurrencies aren\u2019t backed by governments or any other standard used with traditional currency. Each \u201ctoken\u201d represents the amount you own.<\/p>\n How much each token is worth varies based on the current market value. One day it’s up; the next day down. With cryptocurrency, the price fluctuations can happen much faster and are more extreme \u2013 both positive and negative. A good resource to check the current prices is CoinMarketCap<\/a>.<\/p>\nBlockchain<\/h2>\n
Fiat<\/h2>\n