A cryptocurrency is a form of digital asset or virtual currency secured by cryptography. It enables to send value between peers in a decentralized network called Blockchain. Blockchain technology is a distributed ledger executed by a diffused network of computers. Cryptocurrencies are protected from double-spend or frauds and are almost impossible to takeover by unwanted part of the network. A strong advantage of cryptocurrencies is privacy. A third-party interference is excluded, and the users of a particular cryptocurrency are only people with access to it.
Crypto companies or blockchain-based firms are start-ups that decided to base their services on blockchain. How it differs from the regular company? Mainly, it enables to improve and reinforce current industries. It allows to avoid frauds and, as mentioned above, to exclude the influence of external parties form concluded transactions.
More and more people value privacy and safe services, hence the interest in crypto companies is constantly growing.
There is a wide variety of cryptocurrencies and its type depends on a few key factors. The first and still the most popular cryptocurrency is Bitcoin, and only Bitcoin is considered strictly as a cryptocurrency. It was founded in 2009 by an unidentified person or group of people under the cryptonym – Satoshi Nakamoto (therefore, currently the smallest units of Bitcoin are called Satoshis). After Bitcoin, a ton of new cryptocurrencies arose. However, newly established coins were divided into two groups.
Altcoins are cryptocurrencies like Ethereum or Litecoin. They were founded after the Bitcoin; However, they still operate on their own Blockchains. Altcoins are usually new technologies or improvements of a Bitcoin’s one.
Tokens are coins built using already existing blockchain. Usually, tokens are used as a digital asset representing established value (for example a share of a company, or unit of services offered by a company). Therefore, many new companies decide to use tokenization and to build their token to simplify and accelerate the process of firms’ activity.
Currently, you can buy cryptocurrencies through cryptocurrency exchanges. It is the most popular way of doing this, at the same time. We highly recommend using exchanges, since these are a secure and reliable place to do so. There is a wide range of exchanges you can choose that vary depending on additional features, fees, payment options and many, many more. Therefore, picking the best cryptocurrency exchange may be a tough, and complicated process. This is why we have created an Exchanges Section where you can easily compare and review the most popular exchanges, and find your best option in a matter of minutes! Click the link and let us make your choice easier!
There are other ways to acquire crypto. For example, you can buy cryptocurrency from another person who has it. Mining cryptocurrencies is an option as well. However, it requires high amounts of energy and advanced computer. This is why we advise using cryptocurrency exchanges at least at the beginning.
The topic of acquisition of cryptocurrencies and the purpose of having it is very wide. The most obvious reason is money transfer. People may buy a cryptocurrency to send money using blockchain technology (lately, the biggest transaction was made with the use of Bitcoin. The anonymous user has sent over 88,857 BTC ($1.15 billion) for a fee of only 0.00027841 BTC ($3.58)). Huge competition for bank’s fees.
The most popular reason for buying cryptocurrencies is trading. It is probably the cause of their popularity. It is due to the huge earning opportunity that appeared at the beginning. Prior coins were known for their large price fluctuations, and many people started to buy it in the hope of quick money.
It is still a very profitable way to earn a profit. However, everything is more controlled, but it is all safe, and secure now. There are fewer frauds and fake companies. Therefore, more and more people decide to try their hand in crypto trading.
When you decide to buy cryptocurrencies, you must stock up with a highly secure and solid crypto wallet. There is a wide range of types of wallets. We, fortunately, covered this topic in our exhaustive guide. Click here to get there or go to the Wallets Section where we juxtaposed crypto wallets for you to make your pick easier.
The topic of cryptocurrencies if very extensive and it seems to be just the beginning of a huge blockchain revolution. We hope this guide helped you to get more familiar with this topic and prepared you to buy your first crypto. However, remember to constantly update and gain knowledge, since cryptocurrencies are changing very fast.
Look at our Cryptocurrencies Section to gain knowledge about the most popular and growing coins. We wish you luck and success on your crypto journey.
With love ❤ Cryptoplater!