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What is Cryptocurrency?

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be exchanged specifically for the good or service provided by the company. Think of it as you would arcade tokens or casino tokens. You will need to exchange real currency for cryptocurrency to access the good or service. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology distributed over many computers that manages and records transactions. Part of the appeal of this technology is its security.

What is Bitcoin?

Bitcoin, formerly known as decentralized digital currency, is basically currencies that can be sent over the Internet. 2009 was the year that bitcoin was born. The name of the producer is unknown, however, this person was given aka Satoshi Nakamoto.

Benefits of bitcoin

Bitcoin is transacted directly from person to person over the Internet. No bank or clearinghouse is required to act as an intermediary. Thanks to this, transaction fees are very low, they can be used in all countries of the world. Bitcoin accounts cannot be frozen, the prerequisites for opening them do not exist, the same for limits. Every day more merchants start accepting them. You can buy whatever you want with them.

How bitcoin works

It is possible to convert dollars, euros or other currencies into bitcoins. You can buy and sell as if it were the currency of another country. To keep your bitcoins, you have to store them in something called wallets. These wallets are found on your computer, mobile device, or third-party websites. Sending bitcoins is very simple. It is as easy as sending an email. You can buy practically anything with bitcoin.

Why Bitcoins?

Bitcoins can be used anonymously to purchase any type of merchandise. International payments are extremely easy and very cheap. The reason for this is that bitcoins are not really tied to any country. They are not subject to any kind of regulation. Small businesses love them, as they do not include credit card fees. There are people who buy bitcoins only for the purpose of investing, hoping that they will increase in value.

Ways to get bitcoins.

1) Buy from Exchange: People can buy or sell bitcoins on sites called Bitcoin Exchange. They do this using the currencies of their country or near or in any other currency.

2) Transfers - People can simply send bitcoins to each other through their mobile phones, computers or online platforms. This is similar to sending cash digitally.

3) Mining: The network is secured by some people called miners. They are regularly rewarded for all newly verified transactions. These transactions are fully verified and then known as a transparent public ledger. These people mine these bitcoins, using computer hardware to solve difficult math problems. Miners spend a lot of money on hardware. Today, there is something called cloud mining. By using cloud mining, miners only put money into third-party websites, these sites provide all the necessary infrastructure to reduce energy and hardware consumption expenses.

Store and save bitcoins.

These bitcoins are called digital wallets. These wallets exist in the cloud or on people's computers. A wallet is somewhat similar to a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things, or simply store bitcoins. Unlike bank accounts, these bitcoin wallets are never FDIC insured.

Types of purses.

1) Cloud Wallet - The advantage of having a cloud wallet is that people do not need to install any software on their computers and wait for long synchronized processes. The downside is that the cloud can be hacked and people can lose their bitcoins. However, these sites are very safe.

2) Wallet on computer: The advantage of having a wallet on a computer is that people keep their bitcoins safe from the rest of the Internet. The downside is that people can remove them by formatting computers or causing viruses.

Cryptocurrency Investment

Investing in the cryptocurrency market space is often complex, especially for traditional investors. Indeed, investing directly in cryptocurrency requires the use of new technologies, new tools and the adoption of new concepts.

If you decide to dip your toes into the world of CryptoCurrency, you will need to have a clear picture of what to do and what to expect.

Whether it's Bitcoin, Litecoin, Ethereum, or any of the 1,300 tokens, buying and selling cryptocurrencies forces you to choose an exchange that deals with the products you want.

Being the most famous decentralized cryptocurrency, Bitcoin dominates the crypto space so much that the terms crypto and bitcoin are sometimes used interchangeably. However, the point is that there are also other cryptocurrencies that one can rely on to make crypto investments.


Litecoin, also known as Bitcoin's silver to gold, is an open source decentralized payment network that operates without involving an intermediary.

How is Litecoin different from Bitcoin? Well, the two are similar in many ways, but Litecoin's block generation is much faster than Bitcoin's. This makes investors around the world open to accepting Litecoin.

Charlie Lee, a former engineer at Google founded Litecoin in 2011. Although Litecoin does not have Bitcoin's anonymity technology, recent reports have shown that Litecoin is preferred over Bitcoin due to its persistence. Another factor that favors Litecoin is the Bitcoin SegWit technology which means secure peer-to-peer currency trading without involving participation in an exchange.


Launched in 2015, Ethereum is a decentralized software platform that enables distributed applications and smart contracts to operate without interference from third parties. Currency is the ether which is like an accelerator within the Ethereum platform. In the first space of cryptocurrencies, Ethereum. is the second most preferred choice after Bitcoin.


Zcash gained attention in the latter part of 2016 and is focused on solving the problem of anonymous transactions. To understand currency, let's think of it as "if bitcoin is like HTTP for money, Zcash is HTTPS".

The currency offers the choice of the protected transaction to maintain the transparency, confidentiality and security of the transactions. This means that investors can transfer data in the form of an encrypted code.


Originally known as darkcoin, Dash is a more selective version of bitcoin. It was launched in January 2014 by Evan Duffield under the name Xcoin. It is also known as a decentralized autonomous organization or simply DAO. The coin was intended to remove all of Bitcoin's current limitations. Currently, Bitcoin has gained a substantial position in the cryptocurrency space.

The alternative to virtual currency that promises secure and anonymous transactions through a peer-to-peer network is cryptocurrency. The key to making good money is making the right investment at the right time. Compared to everyday money, cryptocurrency models operate without involving an intermediary as a decentralized digital mechanism. In this distributed cryptocurrency mechanism, ongoing activity is issued, managed, and approved by the community's peer network. Cryptocurrency is known for its fast transactions in any other mode such as digital wallets and other media.

In addition to the above, other major cryptocurrencies include Monero (XMR), Bitcoin Cash (BCH). EOS and Ripple (XRP).

While bitcoin is the trendsetter and leading the race, other currencies have also made their mark and are gaining in preference every day. Given the trend, other cryptos will have a long way to go and may soon give Bitcoin a hard time maintaining its position.

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