What is Cryptocurrency?

Most people have heard of Bitcoin, but have no idea what it is or how it works. Bitcoin is a form of virtual or digital currency known as cryptocurrency, which uses cryptography or code to keep transactions secure. Cryptocurrency introduced a new type of currency on a software structure.

What Is The Origin Of Cryptocurrency?

Satoshi Nakamoto was the originator of bitcoin, and release the original version of the Bitcoin software in 2009. The open source worked on the software for two years, when Nakamoto presumably moved on to other projects. There’s a lot of speculation about who Nakamoto actually is, but it may remain a mystery.

How Does It Work?

Cryptocurrency is real money in a digital a form of payment similar to secure, online e-commerce payment processors to pay for goods or services. A lot of companies involved with cryptocurrency issue tokens that are their form of currency that is similar to tokens in an arcade. Actual money is exchanged for the tokens. The new form of currency is so popular that there are more than 1,400 cryptocurrencies that are used for online trade. According to statistics, all cryptocurrencies currently in use have a value of approximately $708 billion. Bitcoin, the leader in cryptocurrency, has a value of $283 billion.

What Is The Blockchain?

The blockchain is the database that’s compatible with cryptocurrency. The way the blockchain differs from a traditional database is that the data can be stored on thousands of computers in locations around the world. Since the data is on so many systems, the cost is much lower than with a traditional database. Due to the encryption, if part of the data is compromised, the entire database isn’t exposed.

What’s the Attraction Of Cryptocurrency?

1. Many people are using cryptocurrency because they see it as the currency that everyone will be using in future generations. They’re buying the currencies now because they speculate that it will be more valuable in the future.

2. Inflation is another reason that people are using cryptocurrency. When banks manage the supply of money, it tends to decrease in value during periods of inflation.

3. Some cryptocurrency supporters like the idea of the blockchain, the system that cryptocurrencies use. The theory is that the blockchain is more secure than more traditional systems used for processing monetary transactions.

4. Some cryptocurrency users prefer the idea of conducting financial transactions without government interference.

5. Some financial speculators aren’t interested in using cryptocurrency because they’ll be more widely accepted for financial transactions in the future. The belief is that the currencies will soar in value, so they’re buying them know before the prices drastically increase.

Top Finance Tips for First-Time Homebuyers

Buying your first home can be a stressful process. But it doesn’t have to be. The best way to eliminate stress is to do your research. If you do enough research then your home buying experience will be smooth and as stress-free as possible. Below are some of the top finance tips for first-time homebuyers.

What’s Your Credit Score?

Knowing your credit score is the first step to purchasing a home. Some people mistakenly believe that paying your credit card bill on time each month automatically means you will have a good credit score. However, you also have to consider how much debt you carry month-to-month in relation to your income. There are many free credit reports online that you can consider. Here’s a helpful list. Once you have your report you need to look it over to make sure there aren’t any mistakes. If your credit is damaged then you will need to repair it before searching for a home.

Know Your Budget

Before you can purchase a home you need to know where your money goes each month. If you are able to save money at the end of each month, then you are in a good position to purchase a home. On the other hand, if you live paycheck-to-paycheck the home buying process will be difficult. Mortgage lenders will look at your income in order to determine whether they will give you a loan or not. Therefore, it’s not a bad idea to create a budget and track your money each month. This will give you a better idea of how much you save each month, and it will help you eliminate unnecessary expenses.

Estimate Your Costs

One of the first steps to buying a home is determining how much you can afford to spend. Bankrate has a useful calculator that will help you determine how much money you can spend on a home. By entering your monthly income and things like your credit card bills, the calculator will give you a helpful estimate of how expensive of a house you can afford and the monthly mortgage payment you can afford.

Down Payment

The more money you can put down on a house the better. This is why it’s a good idea to create a monthly budget when you first start thinking about buying a house. Following a budget each month will help you quickly save for a down payment. Many lenders won’t even work with buyers who can’t afford to put down at least twenty percent of the home’s asking price. However, there are some programs that assist buyers who cannot provide enough of a down payment. Take a look at this site to learn more.

Top Personal Finance Blogs

One of the most sure-fire ways to guarantee wealth and security is to pay attention to your personal finance situation. The more you know about personal finance the more money you will save. You’ll also make better financial decisions in general. I recently came across a great resource that lists the best personal finance blogs of 2016. Here’s the link to the article. The list was actually voted on by readers, so the top site, Cash Cow Couple, is a site that a lot of readers recommend. There are many other sites on the list that are worth checking out too like Dough Roller and Mr. Money Mustache. All of the sites on the list are great for inspiring you to manage your money better.