What's Bitcoin?

A Bitcoin is not a physical object. While it is possible to buy a "minted bitcoin" online, it holds no value other than the material it's printed on and looking pretty neat.

Bitcoin is a type of cryptocurrency, electronic cash that can be sent directly from one party to another without going through a financial institution.

The true value of bitcoin comes from something called the blockchain. An impossible to defraud digital ledger that everyone can see, that goes back all the way to the first ever transaction.

And what's more? All this "proof of purchase" data isn't just stored in your wallet or the other person's wallet but in EVERYONE'S wallet, so-to-speak, because EVERYONE CAN SEE all transactions listed on the blockchain - they just can't easily trace who made what transfer.

This document is the official white paper for Bitcoin.

What is a Blockchain?

The blockchain is the name given to the electronic payment system based on cryptographic proof instead of trust, which is the secret sauce that allows any two willing parties to transact directly with each other without the need for a trusted third party.

Transactions that are computationally impractical to reverse (takes a lot of energy, which really means money) would protect sellers from fraud, and routine escrow mechanisms (an intermediary that holds the money, not necessarily a person - it can be a smart contract) could easily be implemented to protect buyers.

A smart contract is code that replaces a lawyer or intermediator that people usually use because it's tough to trust strangers, especially ones online.

What's a Crypto wallet?

A cryptocurrency wallet is what it sounds like: a place where you can "store" your electronic cash. But it's - you guessed it - not a physical object; although you can buy ones that masquerade as one online, with style, I might add.

But... your bitcoin isn't actually stored in your wallet. What's in your wallet is something called a private key, which is a long string of letters and numbers that acts as a password to access your bitcoin, which... is technically stored on the blockchain, protected by a cryptographic lock known as a public key, or address. The public key and the private key are the tools required to ensure the security of the crypto economy

What's in your wallet is the abracadabra needed to access the bitcoin kept safely and securely on the blockchain.

What are the risks?

1. Volatility

Because cryptocurrency is still in its infancy, there is more market volatility than in traditional investments.

This is why it's important to learn how to invest smartly, so that no matter what storms you face, your vessel will remain afloat because you've charted your course and know exactly where your horizon is.

Volatility can cut both ways, meaning fast appreciation and/or depreciation. When an investment goes through a correction and the price drops, people panic.

As women, we are natural leaders and have the EMOTIONAL CAPACITY to not panic sell. In fact, if you ever feel the need to cash out your invested coin, a good rule-of-thumb is to BUY NOW.

You must say to yourself: "The price of this coin is at a bargain! I should buy more now!" instead of "The price of this coin has gone down! I should sell now!"

An investor MUST have this attitude.

Remember: having a plan and sticking to it is the best defence against volatility that one can have.

2. Counterparty Risk

Because crypto is mostly unregulated, there are a few risks to consider here. One is something called counter-party risk - this means:

Losing your keys or getting hacked is a risk, but again, this risk exists with other investments. The key difference here is that because of the innate unregulated nature of cryptocurrency, there isn't insurance or much the feds could do if you were stolen from, whereas a bank has some insurance (up to a certain amount, varies by country), and we have justice systems already set up to help protect us.

Again, WOMANKINDCRYPTO urges you to keep your seed phrase/private key SAFE and HIDDEN. Treat it like actual cash because if someone has your wallet address and your phrase, that's the exact same thing as cold hard cash to criminals.

Do your own research (DYOR). Yes, this takes time, but your future is worth it. Invest in established coins. Beware of scams commonly referred to in the investment industry as "rug pulls".

How this works is, a brand new coin is started and the founders have a huge stake in it. They "pump it" by creating buzz on social media and with giveaways and promises of free coin, that is... until they pull the trigger and sell ALL of their coins (remember they own most of them), which causes the price to plummet. Then, they run away with YOUR hard earned cash that you used to buy their coin.

The defence against this is to do your research (as with traditional investing).

3. Regulation Risks

Decentralization means there is no single governing party that rules over everyone else. There is currently no legal or regulatory framework applicable to cryptocurrencies or their equivalents. This basically means that if something unfair happens to you, chances are the courts won't be able to help you. This is the other side of the crypto cutlass.

We at WOMANKINDCRYPTO believe that the greatest risk with investing in cryptocurrency, is not investing in cryptocurrency.

Why should I care?