Guide to cryptocurrencies
In this place, we would like to quickly guide you through the necessary information about cryptocurrencies. All the basics you need to know are here. Let’s don’t waste the time and jump straight to the topic!
What is cryptocurrency
Cryptocurrency is a digital asset used to make quick, secure and cheap Internet-based money transfers by its owner.
Cryptocurrencies are protected by cryptography, therefore it’s almost impossible to forge or hack them. A lot of cryptocurrencies are networks based on Blockchain, so the decentralized distributed ledger enforced by a separate network of computers. In other words, there are no individual party that is responsible for the processing but everything takes place individually. It is great because allows complete transparency and privacy at the same time.
Types of cryptocurrencies
The first cryptocurrency is Bitcoin. It was founded in 2009 by unidentified programmer or group of programmers under the pseudonym Satoshi Nakamoto. It was a huge innovation at the time. It remains the most popular and valuable coin on the market.
Currently, there are tons of cryptocurrencies in different types and for different purposes. However, not all of the coins are good projects, similarly as on the stock market. Not all of shares and bonds are valuable it’s about the company and the goal behind it.
Altcoins
Altcoins are cryptocurrencies that were released after the Bitcoin but operate on their own Blockchain network. The good examples of the most popular altcoins are Ethereum and Litecoin.
Tokens
Tokes are the coins built with the use of already existing Blockchain. It is a pretty interesting technology. The best example of token building system is Ethereum. It has its programming language called Solidity (currently updated version to Solidity 2.0) which enables other smaller companies to build their tokens using open-source Ethereum platform.
How to use cryptocurrencies
There is not only one field to choose for cryptocurrencies. Blockchain finds use in many industries and can improve them significantly. The most obvious purpose of cryptocurrencies is payment methods and money transfer services. It can be used as an investment, information processing service or security solution as well. This is why it has such a big potential to disrupt the current ecosystem we operate in.
How to own a cryptocurrency
Buying cryptocurrencies
There are a few ways to own a cryptocurrency. The easiest is to buy one through the cryptocurrency exchange. Simply create an account, get verified, deposit funds on your accounts and you can start accumulating your crypto equity.
If you hesitate which exchange is the best, you can always use our comparison here and find your best! Remember to gain the proper knowledge before your first transaction!
Mining cryptocurrencies
Another pretty interesting way to collect crypto is to mine it. However, to start mining crypto you need extremely cheap electricity source and proper technical skills.
How to store your cryptocurrencies
To store your coins you’ll need a wallet. It’s a device or software with high security that enables you to receive, store and send your cryptocurrencies. It provides you with your unique and individual crypto address (something similar to bank account address) to process all of the transactions you make with crypto assets.
There are many types of crypto wallets with different features and functions which we covered for you in our Wallets Section. Make sure to check it out to gain knowledge and find the best wallet for you!
Conclusion
The topic of cryptocurrencies is very wide and it’s hard to explain it only one article. However, we hope you get useful knowledge, and at least brought you closer to the world of cryptocurrencies through this short guide. If you’re interested in getting more in-depth information about Blockchain technology and cryptocurrencies we recommend to do further research on your own using widely accessible online guides and information.