Whether you want a new way to invest money or you’re looking for a safer way to spend it, cryptocurrency is increasingly becoming a smarter option. If you’re heard of this type of currency, but didn’t know exactly what it was or how to use it, here are some thing to keep in mind.
What Are Cryptocurrencies?
Cryptocurrencies are digital money that are virtually impossible to counterfeit. They’re also nearly impossible to inflate. Unlike fiat dollars or Euros that governments can churn out at will, cryptocurrencies are built using blockchain technology. They’re built using a number of computers via an online ledger.
You can purchase and sell cryptocurrencies using a platform such as the OKX exchange. Store your currency securely using a crypto wallet.
What Types of Cryptocurrencies Are There?
There are a wide range of cryptocurrencies available. Some of the most popular coins include the following:
Not only is Bitcoin one of the most popular cryptocurrencies it was also one of the first. It came about in 2009. Now, several years later, all major economies now accept it. The country of El Salvador even mandated it recently as legal tender.
Ethereum was launched in 2015. Designed to be similar to Bitcoin, Ethereum is different in that it is programmable. With Ethereum, you are able to build apps, enabling you to use the currency for games and social networks as well as financial services. You have more freedom and privacy with Ethereum.
3. Ripple XRP
Ripple was specifically designed for the financial services industry. XRP was created to make transactions quicker and easier. You can either invest in XRP or use it as currency to purchase goods.
Litecoin is one of the oldest cryptocurrencies after Bitcoins and also one of the most popular. It was created in 2011 and designed as a low-cost way to make payments. Because it’s created using a simpler algorithm, Litecoin is a faster way to pay. You can make five Litecoin transactions every second.
EOS was created to compete with Ethereum. From the start, the designers of EOS wanted it to be better and faster. EOS isn’t created via data mining. Because of this, there have been concerns that the cryptocurrency isn’t as secure as other types of digital currency.
How Can You Get Started in Cryptocurrency?
You can buy a cryptocurrency for either an investment or to spend. Most people do both. If you plan on investing in cryptocurrency, then purchase different coins and plan to hold on to them for a few years.
Trading your crypto coins can earn you a tidy profit if you do it right. Start small and learn as much as you can about the different types of coins you are interested in. Keep in mind that the value of crypto coins can be volatile, so make sure you invest with money you can afford to lose.
While investing in this currency can be a little scary, you’ll find the rewards are well worth it. There is a potential for high returns so long are you are patient.