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Cryptocurrency is one of the most trending buzzwords in recent times. Every other person who heard about it wanted to know about it out of curiosity and influence. Here we will also discuss cryptocurrencies from our point of view so that you can decide whether or not crypto is your cup of tea. Before we move on, let it be clear that it’s not some financial advice; instead, consider it more of a piece of information based on our knowledge about the subject.
What are cryptocurrencies?
The name cryptocurrency itself suggests a form of currency encrypted in some computer-coded language. Unlike traditional currencies that need to be printed or minted in physical form, cryptocurrencies are digital assets or digital forms of money that can be minted, traded, and exchanged only digitally.
The need for cryptocurrencies to be created by cryptographic processes is to safeguard the asset against fraud. Computer network software enables them to trade and own with security. Cryptocurrencies we see today have different units, and all have their utilities. They are referred to as coins or tokens depending upon their use case.
These use cases can be varied from using them as a means of exchange to buy some goods and services; some can be used as stores of value that means you can use it for investment purposes, and some are created to help in running computer networks to make it able to carry out more complex transactions.
The blockchain technology behind Cryptocurrencies
Cryptocurrencies possess the unique feature of being decentralized, which is mainly made possible because it is based on blockchain networks. Blockchain is a chain of blocks or networks that is decentralized, distributed, and a kind of digital public ledger. The blocks in blockchain keep information like data and hash, which can be considered the address and hash of the previous block.
Bitcoin was the first cryptocurrency that came into existence based on blockchain. By considering its utilities, you will quickly learn about all the cryptocurrencies as more or less all have these fundamental features. Being in a decentralized network, they are free from autonomy and control of any authority or entity such as the Government or banks as traditional currency does.
These cryptocurrencies being available on a public ledger can be accessed by anyone, anytime from anywhere, which gives the user its authority. Since it’s digital and available on the blockchain network, which is fast, secure, and decentralized compared to the traditional internet, it becomes easy for cryptocurrencies to transfer from one place to anywhere in the world in just a matter of time.
Prominent and famous Cryptocurrencies
As discussed earlier, cryptocurrencies are divided by real-life use cases and utilities. The flaws or drawbacks of traditional currencies brought the need for cryptocurrencies. Any cryptocurrency cannot fill some void, or if lagging in some features gets traced by developers and ultimately creating another cryptocurrency. Following this, where initially there was only one cryptocurrency, Bitcoin, which was created and launched in 2009, today, as we sit here in 2022, thousands of cryptocurrencies came into existence and continue.
To get some suitable cryptocurrencies for yourself which you should prefer and buy. However, it depends upon your choice and needs your research. You can start with checking your research from checking fundamentals, market capitalization, market volume, etc., from websites like Coinmarketcap, Coingecko, etc.
How can you buy cryptocurrencies?
When you are done with the research part and have made up your mind about buying or investing in crypto, consider some basic processes. The first was obviously to do your research about crypto you want to buy; after that, you need to check for exchange from where you can buy cryptocurrency of your choice; the third step can be considered as an optional step which is to have a crypto wallet to keep your digital assets.
Factors need to be considered while choosing a crypto exchange
Although it’s always suggested to prefer leading and famous cryptocurrency exchanges like Binance, Coinbase, Bitfinex, FTX, and a lot more, the reason is their reliability, security, and services they provide which comes in handy especially when anyone is entirely new to crypto.
While comparing among the top exchanges, some measures you can check on are their security, availability of cryptocurrencies on platform, transaction or trading fees, availability in your regions, etc. Leading exchanges mostly have all the features available, so they are preferred.
When you are done searching for an exchange, now it’s time for you to add an account on the platform. The process to open an account varies from exchange to exchange, which you need to consider. They need some personal information, ask to fulfill KYC, add bank details and debit or credit card details.
Buy cryptocurrency of your choice
Now that you have added your account to the crypto exchange, it’s time for you to buy cryptocurrency. The digital asset you choose to go with should have a trading pair with fiat currency like the US dollar so that you can enter the crypto ecosystem.
After that, choose your payment method either directly via bank account, debit, or credit card. When you select the amount of digital assets you want, the same fiat currency will be deducted from your account, and the cryptocurrency you’ve bought will be added to your exchange account.
Add crypto wallet to secure digital assets
To have full authority on the cryptocurrency you bought, prefer to add them into your crypto wallet. A crypto wallet is a kind of digital locker that serves you to store your cryptocurrencies and gives complete autonomy of your holding to you. Although your exchange platform has its crypto exchange service, your crypto wallet adds on an extra security layer.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
