The cryptocurrencies are here to stay. Digital currencies such as Bitcoin, Ethereum or Litecoin are gaining more headlines and are starting to be very important in the day to day of those who invest. It is still early and their journey is short (they are not even 10 years old), but their growth does not seem to have a ceiling.
To start enjoying the world of cryptocurrencies it is convenient to know step by step each of the details that surround them. There is always time to invest in cryptocurrencies and anyone interested in this market can be encouraged to try to earn money in an exciting and trustworthy way.
- First of all, we are going to show you which are the most important cryptocurrencies and how to buy them.
- Then we will have to make sure that we have a good storage system to keep them in good condition.
From all this we will give you the necessary information so that you can succeed working with cryptocurrencies and discovering all the secrets of this market.
- 1 What are cryptocurrencies?
- 2 How to buy cryptocurrencies?
- 3 Most famous cryptocurrencies
- 4 How to invest in cryptocurrencies?
- 5 Where to store cryptocurrencies?
- 6 What can we buy with cryptocurrencies?
What are cryptocurrencies?
Cryptocurrency works as a form of exchange in a digital way. Since its appearance in 2009 through Bitcoin have emerged a large number as its popularity grew, reaching an amount exceeding 1,300.
They have more and more applications and are accepted by more companies. All cryptocurrencies have their own characteristics and their different protocols, although they all have many points in common.
Basically, because they are all created in the image and likeness of the one that marked the path, the Bitcoin. In general, all cryptocurrencies have a great privacy, with the ownership defined by the names of the users.
Almost all of them usually have a fixed number of available units, which avoids the appearance of fictitious amounts that end up devaluing their quotation. All transfers are protected with complicated algorithms.
The cost of each cryptocurrency in the market rises or falls depending on the trust it generates in the users. Here, the big winner is Bitcoin, which started 2018 overcoming the barrier of 20,000 euros per unit, staying in the following weeks between 10,000 euros.
Others, however, are still in moderate amounts that invite your investment.
- When it comes to trading with cryptocurrencies, the system is very similar to the traditional one with Forex. Therefore, the operation is based on buying a quantity at a certain price and try to sell it for a higher price to look for a profit.
As a payment currency, cryptocurrency is somewhat limited, although its future seems very promising. They are not yet accepted in many online stores, although it is expected that in the coming months this trend will change and the market will open.
How to buy cryptocurrencies?
To start acquiring cryptocurrencies you have to resort to exchanges, web pages where you can buy and exchange these currencies. To do this, it is convenient to study which ones have the most reputation, offer more payment methods, have more security, lower costs and also more attractive exchange rates
One of the most used exchanges is Coinbase, which can also be used as a purse to store acquired cryptocurrencies. It has both an online version through its website and an application for mobile devices, so its use is very widespread. Its costs are correct, but it is somewhat short in payment methods.
Another option is Binance, which has experienced great growth in recent years, even having its own cryptocurrency (Binance Coin). Its exchange rates are very good being among the lowest that can be found in the entire market and using an interface that is very intuitive.
In addition, you have another 200 more to choose from. The fees are fixed by each user and the platform takes a small part in transactions.
Most famous cryptocurrencies
To work with cryptocurrencies its important to know which are the best known in the market. At this moment there are too many cryptocurrencies and not all of them offers a good system.Click on the image
For that matter we have to know each one of the bests starting with Bitcoin and following with another options like Ethereum, whose popularity has growed on the last years.
In this case, Ethereum has started to win more and more attention by the experts, and the most possible thing is that it will become a success in the near future.
Another good option to follow is Litecoin, with personal specs and some elements that are not present in other cryptocurrencies. And more like Ripple, Dash, Monero and Iota.
It could be considered a synonym of cryptocurrency, since they were born thanks to it and it is the most famous of them with a lot of difference. The success of this phenomenon is almost entirely its responsibility.
It has the highest overall value per unit of all, and is also the most useful today, since it is being accepted in numerous platforms of the network. Some of the most famous are the Microsoft Store, the Destinia travel portal or the Dell digital store.
In almost all large cities it is possible to find Bitcoin ATMs in some establishments.
What is a Bitcoin?
Bitcoin is a decentralized currency, which does not have the support of any government or bank, which implies that it does not have legal security either. It also uses the system proof of work (PoW), which prevents double spending.
There is no need for intermediaries when making a transaction, since their protocol is open source. Its profile is at the moment very speculative, which has caused some to criticize that a bubble may be living in recent times, hence its high prices.
How did Bitcoin born?
To further increase the interest in Bitcoin, a mysterious story surrounds them: no one knows who created it. Officially, it was an idea a 37-year-old Japanese named Satoshi Nakamoto.
However, nothing is known of this alleged person, who also abandoned the cryptocurrency and sold all its units a year after creating it, in 2010. For all this, many think that it is really an invention, a pseudonym used by its real creators, who would be americans.
One of the most outstanding and recognizable characteristics of Bitcoin is the use of the Blockchain technology, which functions as a book in which all transactions are recorded.
All of them can be checked publicly, and it is also impossible to manipulate or falsify, since it would require changing all the blocks that go forming the chain (millions of millions, and increasingly).
How much is Bitcoin Value?
Bitcoin has 21 million fixed units, of which more than 75% have already been mined. The pace of creation is slowing down, so it is expected that the maximum will not be reached until 2032. The units are interchangeable and do not need a personal identification.
The Bitcoin figures are surprising. After a big growth at the beginning of 2018, its value stabilized at around 10,000 euros per unit, somewhat far from any other cryptocurrency. The total number is also unattainable by the rest, with more than 180,000 million euros.
What is an Ethereum?
It is a platform that executes intelligent contracts, applications that can not be interrupted, interfered with, manipulated or censored in any way. This is based on the fact that they use a chain of blocks. Ethereum uses the blockchain technology with which Bitcoin was born.
Ethereum allows, therefore, that any asset can be transferred without an intermediary guaranteeing that it is a process of trust, and that at the same time all the instructions that both parties have agreed upon are maintained.
It is fully decentralized and open source, so any application with intelligent contracts can be developed freely. Intelligent contracts can be used in numerous fields and areas such as loans, bets, voting systems, successions, crowdfunding, intellectual property, transfers of goods, etc
How did Ethereum born?
It was an original idea of a Russian developer named Vitalik Buterin, who had been operating with Bitcoin since he was 17 years old. He achieved the Bronze Medal in the International Computing Olympiad in 2013 developing a scripting language that would allow applications with cryptocurrencies to be created.
Not being possible with Bitcoin, he launched Ethereum and its subsequent cryptocurrency, Ether. For this, he needed collective funding that he started in 2014 and that in just one month he managed to raise all the necessary funds. In 2015, the project became a reality.
At present, Ethereum is maintained through ETHDEV and with specific investments of large developers. It has its own foundation through which it finances various projects or start-ups, which propose ideas that exploit the Blockchain technology of the cryptocurrency.
The objective of Ethereum is to decentralize the web, for this it introduces dynamic messages, a functional user interface, trust transactions and static content.
It works anonymously thanks to the virtual machine – Ethereum Virtual Machine (EVM), and intelligent contracts use high-level languages such as Serpent or Solidity.
How much is Ethereum Value?
An Ether unit is worth about $ 1,000 today, so a dollar would be a finney.
What is a Litecoin?
It is abbreviated LTC and for many it is a low cost alternative to Bitcoin, from which it inherited its open source. It is considered the digital substitute for silver, although Bitcoin would be gold.
It is supported by the P2P network and each LTC unit is divided into 100 million smaller units, all with eight decimals each.
It is one of the cryptocurrencies that has grown the most in recent times. For this he showed a very significant example: the same thing that his quotation has increased 200% lately, a year ago he lost 90% in just a few days.
A clear example of the volatility of this market (and, remember that, is bullish). It has a higher number of units available than Bitcoin, its transaction speed is higher and market capitalization is lower.
How did Litecoin born?
There are many similarities between both criptodivisas, because its original creation emerged as a Charlie Lee project in 2011 totally inspired by Bitcoin.
It was published under an MIT license, that is, from the Massachusetts Institute of Technology. With LTC it is possible to make transfers without the need of an intermediary and anonymously, something that you share with most cryptocurrencies.
How much is Litecoin Value?
Litecoin’s market capitalization is around 10,000 million dollars in 2018, being the sixth most valuable cryptocurrency in the market.
Your unit has an average price of 150 euros, which makes it one of the most attractive digital currency for investors, since it is more affordable than Bitcoin or Ether. Litecoin that cap is marked at 84 million, of which there are already almost 60 in circulation.
What is a Ripple?
For many it is the cryptocurrency of the banks, since entities such as BBVA, Banco Santander or American Express have reached agreements to use the Ripple in recent times. Instead of functioning as a chain of blocks, its blockchain works like a very similar network of nodes.
During the start of 2018, Ripple was one of the cryptocurrencies that gave more play in the markets, rising to a historical value of 3.8 dollars per token.
From there, as happened with Bitcoin and its historical maximum, has stabilized in an amount around half. In terms of market capitalization is now the third cryptocurrency.
How did Ripple born?
Ripple has a big difference with the rest of cryptocurrencies and is that his project already existed long before the digital currencies were born. This is an idea that Ryan Fugger had, who designed a payment system called RipplePay that would end up creating a decentralized financial system.
In 2011, work began on a system of transactions that were verified by consensus among the members, changing the conditions of Bitcoin mining. In 2012, Chris Larsen and Jed McCaleb worked together on this project and presented it to Ryan Fugger, being the previous step to the definitive creation of Ripple.
The cryptocurrency began operating in September 2012 after the creation of the OpenCoin company, which is currently called Ripple Labs, Inc., after Jed McCaleb left the project in the summer of 2013. The official cryptocurrency license arrived in the summer of 2016.
How much is Ripple Value?
In terms of the number of available units, there are currently available in the market 100 billion Ripple (abbreviated XRP) available.
It closed 2017 by the big door, reaching its historical maximum with a value of 1.9 dollars per unit, and being the second cryptocurrency in terms of market capitalization after SBI Holdings confirmed that it was going to use it as well.
What is a Dash?
It is the first fully decentralized digital money system, and each time has more support and acceptance throughout the network.
Dash allows to carry out totally private instant payments in digital stores and also in some physical stores. Being a Blue Chip cryptocurrency, it is easy to find it in any exchange or Exchange.
As for security, Dash is one of the best, with instant and totally anonymous transactions, with hardly any possibility of suffering any attack. Dash currently has more than 4,100 Masternodes and is the only cryptocurrency that can compete with Bitcoin in terms of the number of transactions that are processed.
How did Dash born?
The story of Dash began in 2014, albeit with a different name. By then, he was born as XCoin (XCO). Soon after, it was renamed Darkcoin, while a year later, in 2015, it adopted the name by which it is currently known. It is a game of words between Digital Cash giving rise to Dash.
The projects that are carried out with the cryptocurrency are financed in a decentralized and totally public way, with a vote procedure through the Masternodes network, with an autonomous operation.
How much is Dash Value?
Its price is around 1,000 dollars per unit, and there are currently around 10 million coins in circulation. The fixed number of Dash is 18 million, so half are already available. It has a market capitalization of 6,000 million dollars, placing in 12th position with respect to early 2018.
What is a Monero?
Monero is about the cryptocurrency with more privacy of all, since it is totally irrastreable. Thanks to this it is one of the most popular cryptocurrencies in the world, also among cybercrime, thanks precisely to this feature.
It is impossible to follow their transactions and does not leave links between them, since all the senders that arrive after a payment are equiprobable.
How did Monero born?
Monero started to gain popularity in 2016, when it was adopted as an official cryptocurrency by one of the biggest black market bazaars, AlphaBay. A year later, the portal was closed by the authorities for their illegal activities.
The privacy of Monero is not limited only to his way of proceeding, also to its creation. It is unknown who created it. Only two people from the development team have left the anonymity: Francisco Cabañas and Ricardo Spagni.
Perhaps because of the world in which he moves, Monero has been a victim of computer attacks in recent times.
How much is Monero Value?
Its quotation value is 300 dollars per unit and its market capitalization has exceeded 4,500 million dollars, being the 13th cryptocurrency at this time. There are almost 16 million Monero right now, but there is no fixed amount, so they will continue to create and mine coins infinitely.
What is an Iota?
Unlike most cryptocurrencies, which resort to Blockchain technology, in this case Iota resorts to Tangle, which allows to operate without chain blocks and also ends with mining.
For that matter, the speed of transactions is considerably higher compared to other digital currencies, without any commission.
Its market records a movement much higher than the rest of digital currencies, with 500 transactions per second. These figures are very far from the others, Litecoin being the closest, and is 10 times lower.
How did Iota born?
Iota emerges as a cryptocurrency supported by the Internet of Things project (IoT, hence its name).
Iota was born to maintain this system, at the hands of the developers David Sonstebo, Sergey Ivancheglo, Dominik Schiener and Serguei Popov. They all worked on a microprocessor called Jinn, a project that eventually led to cryptocurrency in 2015.
How much is Iota Value?
It has a quotation value around five dollars, which makes it a very attractive cryptocurrency for those who start investing.
According to experts, it is called to experience great growth in the coming months, thanks in large part to its direct relationship with the Internet of Things. It is 132 times higher than Bitcoin.
How to invest in cryptocurrencies?
One of the most interesting ways to invest in cryptocurrencies, and that better results gives those who manage to dominate the market, is through short-term trading with Contracts for Difference (CFD). These CFDs allow you to leverage an investment with a certain margin of guarantee.
These are financial instruments that allow you to buy and sell assets in just a few seconds, with a single payment of a spread called spread. These tools are high risk, however, therefore we must bear in mind that decisions can involve complex situations.
CFDs can generate a lot of money quickly, but can also cause large losses in the same way, so it is wise to use them responsibly and always with investments that are acceptable in case of not going well.
To invest in cryptocurrencies with CFD you have to look for brokers that operate with them. Currently there are more and more who accept them, thanks to their growing popularity.
Similarly, almost all offer a Demo Mode in which you can operate with fictitious money, something vital to understand how the interface of each broker works, how each operation is carried out and also know how the market behaves.
When carrying out operations, it is important to always use a Stop Loss order, as this will avoid large losses in case the quote falls on the movements.
Where to store cryptocurrencies?
To save all the cryptocurrencies that are purchased there are purses. They store all the units that are acquired in the market, being able to use them to exchange them or leaving them stored for a long-term investment.
The wallets are responsible for storing all the cryptocurrencies compared through the private keys that are required to access them.
There are many, and increasingly to the growing popularity of digital currencies (same as the exchanges or exchangers), so within the great offer stand out those that are easier to use and provide more security.
In general, purses that are easier to use and offer a more affordable interface are usually the ones with the most problems in terms of security (although nothing serious), while more complex portfolios that require prior learning to know how they work are those that end up being more secure when it comes to keeping cryptocurrencies safe.
One of the most commonly used purses is the exchange houses themselves, which serve as exchange for cryptocurrencies. Users keep their units in an assigned address and the platform manages them from central portfolios in which the different purchase and sale orders made by users are carried out.
It is the most convenient service for those who are dedicated to the exchange between cryptocurrencies and fiduciary currencies. The convenient thing is to use in them the minimum amount that will be traded and the rest.
More common Wallets
Among the most reliable and safe wallets there are: Coinbase, Poloniex, Xapo, Bittrex, Bitfinex, Bitstamp, LocalBitcoins.
Its future is compromised by platforms like Atomic Swaps, Bitcoin, which can make the wallets are no longer needed soon. At the moment, however, they are essential.
What can we buy with cryptocurrencies?
The cryptocurrencies are increasingly widespread and everything points to the fact that they will be even more so. The normal thing when acquiring them and, especially, when firing its quotation is to ask itself, what can be bought with them? And in reality, the list is getting bigger.
Many digital stores already accept to pay with this type of currency, such as Microsoft Store, Dell Digital andDestinia travel portal
However, the most useful way to use cryptocurrencies is through a purse to which a card can also be associated. For example, Xapo.
These card wallets allow you to pay at any establishment that supports card payment, as they charge in the local currency of the site.
However, the wallet is automatically responsible for making the conversion, and is actually paying with your cryptocurrency funds, which have been specifically exchanged by the corresponding fiduciary currency for that operation.
The wallet cards are debit cards and can be used anywhere in the world, so it is no longer necessary to change currencies when traveling abroad.