Cryptocurrencies are complicated, and that is largely in part due to the newness of the technology. The inherent complexity of these currencies is deeply ingrained within the blockchain code; within cryptography. When Satoshi Nakamoto embarked on building the Bitcoin blockchain, he had 31,000 lines of code.
A simple announcement on the internet welcomed more people into the frenzy, and the blockverse began with the mining of the genesis block. Ten years later, blockchain engineers and thought leaders in the cryptoverse have created a universe of solutions that attempt to simplify and make cryptocurrencies ever convenient.
Cryptocurrencies are complex
And that was Majed Mohsen’s vision when he set out to build the Aurix Chain Ecosystem. Mohsen spotted a tremendous gap in the industry and thought he and his team could offer simplified solutions for problems facing the blockchain. He identified how the technology was lacking in simplicity and armed himself with skills in computer science, asset trading, and a background in launching successful tech startups. Majed has built a blockchain ecosystem comprising an exchange, native token, mobile app, etc., using the mentioned skills and experiences.
However, despite multiple solutions to simplify the blockchain, it turns out some newbies still find it hard to shift from fiat to digital currencies. Well, the first part in realizing a seamless transition into crypto is first understanding what makes cryptocurrencies so hard.
What makes cryptocurrencies difficult?
- Cryptography – Satoshi’s vision was to build an utterly impervious system that would be difficult to attack by anyone in government and central banks. The unpredictability of traditional monetary policies, which are subject to manipulation and a raging financial crisis, inspired his creation.Cryptography is complex, and bringing it into practical use in the financial world resulted in the birth of even more complex technology.
- Volatility – Market prices of cryptocurrencies are volatile. They can shift in value rapidly and within short durations of time. This makes the environment risky and profitable at the same time. In the crypto-verse, you could win or lose. And this is a complication in itself, given you should make prior calculations, analyze market fundamentals and technicals before trading. Most of the calculations you will encounter are also in decimals.
- Wallets and Storage – When you buy cryptocurrencies, you need a place to store them. Wallets are complicated because their digital versions require them to be linked to the blockchain and remain as penetration-proof as possible. One needs to store the wallet’s private key, which serves as a password when logging in to the wallet. Misplacement or corruption of the hard disk where your wallet is installed means losing your wallet and digital currencies.
- Exchange Interfaces – Some exchanges have complicated advanced features which are hard for both newbies and professional crypto users. This complication widens further beyond the basic tutorial and might require risking to gain practical experience and understanding of the interface.
What should crypto exchange users do?
Crypto users ought to orient and learn about blockchains, cryptocurrencies, and how to use exchanges to understand how to use them. The best way to do so is to watch other experienced users trade or exchange a currency. They can access materials from crypto masterclasses, Youtube videos, and online tutorials. Besides, platforms such as StackExchange and quora allow technologists to forum and ask queries. On these platforms, more experienced members answer the questions and guide in whatever way they can.