What Is Cryptocurrency?
Cryptocurrency is decentralized digital or virtual currency, based on blockchain technology. You may be noted with the most popular versions, Bitcoin, Ethereum, and Litecoin. There are more than 5,000 different cryptocurrencies.
Investing in cryptocurrency seems profitable and replete with fast profits. After all, during the past ten months, bitcoin (BTC-USD) bottomed out in mid-March 2020 near $5,000, only to rebound to over $23,000 this week, December 2020. That’s nearly a 100% profit.
How to Use Cryptocurrency
In basic terms, cryptocurrency is a digital currency that isn’t regulated or controlled by any government or other financial authority. Cryptocurrency relies on secret codes to verify transactions. While Bitcoin has entered the mainstream, there are actually more than 700 types of cryptocurrency. To use cryptocurrency, buy some from an online exchange and choose a digital wallet to keep it secure. You can save it, or use it to purchase goods and services by exchanging your secret codes.
How Does Cryptocurrency Work?
The most important feature of a cryptocurrency is that it is not controlled by any central authority. These tasks are broadly distributed among a cryptocurrency’s users via the internet.
Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees.
Bitcoin was the first cryptocurrency. Bitcoin was the first cryptocurrency, first outlined in principle by Satoshi Nakamoto in a 2008 paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” Nakamoto described the project as “an electronic payment system based on cryptographic proof instead of trust.”
That cryptographic proof comes in the form of transactions that are verified and recorded in a form of program called a blockchain.
What Is a Blockchain?
Blockchain unchangeable ledger that facilitates the process of recording transactions and tracking assets in a business network.
Why blockchain is important:
Business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared, and completely transparent information stored on an immutable ledger that can be accessed only by permission network members.
How can I buy cryptocurrency?
Cryptocurrency is a volatile market, with exchange rates that can wildly fluctuate by day, and sometimes by hour. Bitcoin is the better-known and most valuable cryptocurrency out there, but there are many others to explore, including litecoin, XRP, Tether, Bitcoin Cash, Ethereum and Cardano.
When you buy or receive cryptocurrency, you are given a digital key to the address of that currency. You can use this key to access and validate or approve transactions.
You need a place to keep your key safe, which is where a cryptocurrency wallet comes in.
You have a variety of cryptocurrency wallets to choose from below :
Desktop wallets: Software like waves.exchange allows you to send and store cryptocurrency addresses and also connects to the network to track transactions.
Online wallets: Cryptocurrency keys are stored online by exchange platforms like Coinbase or Binance and can be accessed from anywhere.
Mobile wallets: Apps like Binance and Blockchain store and encrypt your bitcoin keys so that you can make payments using your mobile device.
Paper wallets: Some websites offer paper wallet services, generating a piece of paper with two QR codes on it. One code is the public address at which you receive cryptocurrency, and the other is your private address you can use for spending.
Hardware wallets: You can use a USB device created specifically to store bitcoin electronically and your private address keys.
Best Bitcoin & Cryptocurrency Trading Platforms (2021)
Binance is the largest digital currency exchange services in the world that provides a platform for trading more than 200 different cryptocurrencies. The platform has seen a high rise since being founded in 2017. Binance is the biggest cryptocurrency trading exchanges trading at 1.2 Billion daily volume and 1.4 Million transactions per second.
Binance has a mobile app for iOS and Android devices which is highly intuitive, easy to use, runs smooth and performs all the basic functions expected of a trading app. The app includes live Bitcoin/cryptocurrency prices, ability to execute orders, manage crypto trades, view P&L and search trade history.
Leading cryptocurrency exchange in the world
Over 100 cryptocurrency assets to trade
Multiple trading pairs against fiat, altcoins and stablecoins
Competitive fees for deposit, trading and withdrawals
Future, margin and options crypto trading available
Earn interest on crypto with a Binance savings account.
Coinbase is widely known as a safe and reputable Bitcoin exchange that is trusted by thousands of customers worldwide including the United States. The exchange is popular for buying and selling cryptocurrency, managing a portfolio, recurring buys, mobile app to monitor the market, earning crypto for learning and a secure wallet to store assets purchased on the platform.
Coinbase offers advanced and professional cryptocurrency trading exchange and which is ideal for beginners and intermediate cryptocurrency traders. The exchange allows individuals looking to trade a wide variety of digital currencies on a secure and insurance-backed platform.
- Global cryptocurrency exchange with several payment methods
- Trusted and secure platform to convert fiat money to crypto
- Easy to use interface on web and mobile app
- Buy crypto with a debit card or transfer from bank account
- Security features such as two factor authentication
- Support team is available 24/7