Cryptocurrency started with Bitcoin back in 2009. In the following 10 years, Bitcoin would become more than 2500 times as valuable as it was when it was first created! In other words, if you owned $10 of Bitcoin when it was first created, you would have $25,000 worth of it today!
And that is only the first cryptocurrency. There are many others providing many powerful tools to users. Cryptocurrency is transforming the landscape of finance.
But what do you need to know about cryptocurrency? And what is the state of it today? Read on through our brief cryptocurrencies guide to learn what you need to know!
What Is Cryptocurrency?
Cryptocurrency is an electronic, data-based form of money that does not have government backing or control. The worth of cryptocurrency is not guaranteed by a nation but rather is based purely on the demand that exists for it. In other words, if people stopped wanting cryptocurrency so much, it would lose all of its value instantly.
This might make it sound risky to some people, but there is no denying that many people have made themselves rich by investing in cryptocurrency. On top of that, cryptocurrency has many practical benefits that attract people to it.
You can make cryptocurrency transactions without having to convert between normal currencies. That means you can make your transactions no matter where you are in the world, and no matter where the other person in the transaction is, either.
Additionally, cryptocurrencies allow for smart financial tools like smart contracts which allow people to trust that their transactions will occur fairly even if they don’t know the reputation of the other party of the transaction.
How to Buy Cryptocurrency
Buying cryptocurrency is simple. Simply sign up for coinbase, finance, blockfi, crypto.com, or any other of the common cryptocurrency websites. You will probably have to attach a bank or debit card to the account to access purchasing power.
Bitcoin is the original cryptocurrency, but that doesn’t mean it is the most useful. In fact, it is one of the lowest-tech cryptocurrencies. The main reason that Bitcoin is the biggest cryptocurrency is simply that it was first.
The second-biggest cryptocurrency is ethereum. Ethereum is expensive to use but has many financial tools like smart contracts that attract people to it.
Other common cryptocurrencies include stable coins like Tether or USD coin. These cryptocurrencies are not for investing, they are for changing one cryptocurrency to another. They are always worth exactly $1, because they track the United States dollar.
You can learn more about the history and future of bitcoin and cryptocurrency at Bytefederal.com.
Understand This New Technology With This Cryptocurrencies Guide
We hope that you were able to learn something helpful from this brief cryptocurrencies guide. This new technology is changing the world, and the faster that people understand it, the better prepared they will be to navigate the new world of currency.
To keep up-to-date on the latest developments in technology, stay tuned to our blog.