Cryptocurrency is a digital currency existing in the digital world. You do not need to carry coins or notes but you only need your smartphone with a strong internet connection.
What makes cryptocurrencies so popular? The key feature of cryptocurrencies is that mostly, they are not issued by any central authority, hence exempts any sort of interference or manipulation by the third party. They are based on blockchain technology – a distributed ledger put by a network of computers. You can even buy things with cryptocurrencies offline but only where the shopkeeper/merchant accepts it.
Two major terms you need to know while dealing with cryptocurrencies are Cryptocurrency exchange and cryptocurrency wallets.
A cryptocurrency wallet is a secure digital wallet that is used to store, send, and receive digital currency. Most of the coins have an official wallet.
The cryptocurrency exchanges are the websites where you can trade cryptocurrencies in exchange for other digital/traditional currency. Bittrex is one of the most popular cryptocurrency exchange platforms that lists numerous currencies and allows standard spot trading orders to be executed.
In a nutshell, cryptocurrencies have become an easy way of securing the future financially. Here, instead of banks and governments issuing the currency and storing ledgers, an algorithm does.
What are the types of cryptocurrency?
As discussed above, the first blockchain-based cryptocurrency was Bitcoin. The currency is the most popular and valuable among others. On the other hand, there are hundreds of alternate cryptocurrencies together known as Altcoins having specific functions. This includes Litecoin, Stellar, Peercoin, Namecoin, Ripple, Dash, Ethereum, Cardano, and EOS among others. Some of these are clones of Bitcoin, while others are built from scratch.
What’s the best way to store and purchase a cryptocurrency?
In today’s digital age, it is of utmost importance to safeguard the cryptocurrency from any type of cyber theft.
A crypto wallet (or blockchain wallet) is the digital wallet where you store your digital currency. Not only it keeps track and record of the coins you own but also your public and private encryption keys. The moment a wallet is created, an address is assigned to it. You use this address while sending or receiving cryptocurrency.
Please note that it is not possible to have a single wallet for all cryptocurrencies. Coinbase and Coinmama are two of the easiest and quickest ways to purchase and store cryptocurrency.
The major difference being, on Coinmama you can only buy Bitcoin and Ethereum. You don’t get any storage or sell options. On the other hand, Coinbase includes a wallet that allows you to trade and store your cryptos.
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