People talking about bitcoin and price all over. The word cryptocurrency is attached to this bitcoin thing sounds like new alien thing introduced — which was not present before.
Understanding ‘Cryptocurrency’ might be very easy, but understanding the concepts and diving into it is a bit tricky sometimes. For most of the time, people do invest into crypto just because of the money. They should also appreciate the technology and enhancements.
What is Cryptocurrency?
Cryptocurrency is a Digital Currency, unlike usual money. Cryptocurrency is backed by a secure network know as ‘Blockchain‘ and is not control by any bank or government.
The word ‘crypto’ means digitally encrypted and currency is the money you use on the daily basis— Together they form cryptocurrency means digitally encrypted money.
The cryptocurrency uses special cryptography to encrypt the transaction.
Also read: What is Cryptography in Cryptocurrency?
These cryptocurrencies could be used to pay for your lunch or can even buy you a car. Interestingly cryptocurrencies can be traded with other cryptocurrencies which make their price variable.
Big Cryptocurrency exchange like Binance, Bitfinex have Revenue Profit of over $200M. The main source of income for these exchanges is from the trading fee, which they deduct every time you buy or sell bitcoin.
Cryptocurrency price depends upon the supply and demand of the coin. The more the people buy the more the price will increase. While there are other aspects too onto which price rely on— one of them is the concept of mining cryptocurrency in which the difficulty of mining keeps increasing will result in less supply which therefore raises the price of that coin.
Bitcoin is a cryptocurrency was designed back in 2009 by a programmer known as Satoshi Nakamoto. Is amongst the very first cryptocurrency achieving over 300 Billion USD as its market-cap.
You might be wondering where these cryptocurrency saves after you bought it. Well, these cryptocurrencies are store in a wallet called Crypto Wallets — which stores the digital codes which actually you funds are.
Many wallets store multiple cryptocurrencies while others only store single. MyEtherWallet only store Ethereum, Blockchain.info wallet store Bitcoin, Ethereum, Bitcoin cash.
Some of the good wallets are:
Wallets are of different types there are: hardware wallets, paper wallet, web wallet, desktop wallets and more.
Many time these wallets get hacked: there are a couple of things you can do to make sure your funds are secured.
Once you bought bitcoin which is most accessible to buy. You can actually exchange it to get another cryptocurrency like ethereum of other. Cryptocurrency Exchange is the way to exchange them. They provide a vast number of services which can be used to change your bitcoin to other coins.
You can use our exchange page to exchange your cryptocurrency from one to another.
Or you can use big exchanges like binance, bitfinex and other. Just know that these exchanges charge some fee to exchange your coins from one another.