Introduction
There’s a lot of hype around cryptocurrency right now, and many people are getting in on the action. If you’re looking to join the ranks of cryptocurrency users, you need to be prepared. Cryptocurrency’s popularity has been exploding over the past few years, and shows no signs of slowing down. As more and more people are getting into cryptocurrency, however, it can be difficult to know where to start learning about this new form of currency. If you want to know everything you need to know about cryptocurrency in order to start investing or trading in it, then read on for a complete guide to cryptocurrency.
What is cryptocurrency, and how does it work?
Cryptocurrency, often known as crypto, is a type of digital money intended to be used as a medium of exchange. This makes it distinct from the traditional money that we all use on a daily basis because there are no actual coins or bills involved. In the sense that it exists in the blockchain and is produced in a selective manner through a technological process involving the participation of volunteers from all over the world. Cryptocurrency is frequently referred to as decentralized. Keep in mind that no country or entity has control over cryptocurrencies. Cryptocurrency units are formed through a process known as mining, which involves processing cryptocurrency transactions and generating new cryptocurrency units.
Types of cryptocurrency
There are many types of cryptocurrencies, but Bitcoin is regarded as the first. Since each cryptocurrency has unique properties, there is no ideal cryptocurrency. Below are well-known cryptocurrencies and how they are utilized.
Bitcoin (BTC)
When discussing cryptocurrencies, most people still refer to bitcoin. It was produced by an unidentified individual or group going by the name of Satoshi Nakamoto in 2008, but only started being used in 2009. Since 2013, there has been a considerable increase in the number of users. Bitcoin is currently valued at 20,000 USD as of September 2022.
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Ethereum (ETH)
Users can use ETH to deploy permanent, unchangeable decentralized apps as well as generate and trade NFTs. Ethereum is a decentralized, open source blockchain with smart contracts that was developed by a programmer named Vitalik Buterin in 2013. It was made available on July 30th, 2015. As of September 2022 one Eth is worth 1500 USD.
Photo byDavid McBee
Binance Coin (BNB)
BNB Coin was established after the older finance chain merged with Binance Smart Chain. Binance allows users to use BNB to pay fees on its exchange. By September 2022, one BNB coin is valued at 275 USD.
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Tether (USDT)
Tether, also known as USDT, is a stable coin that was introduced in 2014 by the company Tether Limited, Inc. It is owned by the Hong Kong-based business ifinex Inc. As of September 22, one USD is equal to one Tether coin.
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USD COIN (USDC)
Another stable coin is the USDC. The purpose of the USD coin was to establish a fully digital dollar. Usdc was established by Circle and published in September 2018. A private entity issued the USD coin, which is stored on the Ethereum blockchain. As of September 2022, one USD is equal to one USDC.
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Solana (SOL)
Anthony Yakovenivo founded Solana, a public blockchain platform featuring smart contracts. Its more recent cryptocurrency is referred to as SOL. As of September 2022, one SOL is worth 131 USD.
Photo by Yahoo Finance
How to buy and store cryptocurrency
Many platforms presently support cryptocurrencies. So if you're wondering how to buy and store cryptocurrency, check out the top cryptocurrency exchange site.
Binance
The largest cryptocurrency exchange in the world, according to the volume of cryptocurrencies traded each day, is Binance. It was introduced in 2017 by its creator, Changpeng Zhao. They have one of the most reliable trading systems available, making it a perfect platform for getting started with cryptocurrencies. Users can use this cryptocurrency exchange to buy, trade, and store digital assets.
Gemini
Since it was the first significant exchange and is currently one of the largest by assets, it is a well-liked platform for investing in cryptocurrencies. Users can buy, sell, and store digital assets on this cryptocurrency exchange. In 2014, Cameron and Tyler Winklevoss launched it. For people interested in cryptocurrencies, Gemini stands out as a top starting point for those interested in cryptocurrencies. Its straightforward, intuitive user interface makes it simple to use.
Coinbase
You can invest directly with USD on Coinbase, which is by far the most well-known and significant cryptocurrency exchange. Brian Armstrong and Fred Ehrsam established it in 2012. It is one of the biggest cryptocurrency exchanges and it supports many different cryptocurrencies. With the help of Coinbase, you can buy and store various cryptocurrencies.
Yellow Card
A cryptocurrency exchange called Yellow Card enables users to purchase, sell, and store cryptocurrencies. The company was founded by Chris Maurice and Justin Poiroux. At the moment, Yellow Card supports three popular cryptocurrencies, namely Tether, Ethereum, and Bitcoin. It is accessible in at least 10+ countries.
What can you do with cryptocurrency?
The list of things you can accomplish with cryptocurrencies is extensive and continues to grow over time. A few ways to get started are listed below.
Travel
Traveling using cryptocurrency can reduce currency exchange expenses as it isn't linked to any one country.
Shopping
You can use cryptocurrencies to purchase goods since so many international retailers accept them.
Donations
Cryptocurrencies can be used to make donations. There are several nonprofit organizations that accept cryptocurrencies as donations.
Conclusion
Cryptocurrencies clearly have some potential advantages, but they also have some major limitations. Investors are normally advised to explore cryptocurrencies cautiously given the instability and other risks.