Tired of the same old stock market? You know, it’s where you invest your money and sit around waiting for years to see any sort of fair return on your investment. It can be very depressing watching everyone else make more than you while your bucket is always empty. Well, there are now ways to avoid that awful feeling!
The new way to invest your cash is in cryptocurrency, and this article will show you the best ones to choose from. We’ll also give you some advice on how to get started. Read on!
The cryptocurrency world can be a bit overwhelming at first, with its unusual jargon and complicated user interfaces, but it is easy to understand once you get going. It might help to think of it as a combination between a stock exchange and a lottery ticket.
First, there are the exchanges where everyone buys their tokens. They work like a stock exchange in that you can buy and sell your tokens based on the current price, but they are completely different to an actual stock market (because no one is selling shares of their own businesses).
With cryptocurrency trading, you are effectively buying (“mining”) coins. These coins do not physically represent coins or currency; instead, they are tokens that grant their owners certain powers in the network they represent. Some of these coins give access to features on their networks, while some limit this power and others don’t have any intrinsic value at all.
The best way to think of it is with an analogy: if the internet was a country, then your computer would be one of its citizens. Now to access certain sites, you need tokens (like money) that you buy for real-world currencies like US dollars or euros.
These tokens, which are also known as cryptocurrencies, can then be stored in online wallets and used to make purchases or exchanged for other types of cryptocurrency. You can even start your own network to create your own tokens using the blockchain.
This is what cryptocurrencies are like. They sound very exciting, but they can also be complicated to understand initially—so let’s take a look at some of the most popular ones on the market right now:
This one is actually not an altcoin; it was developed as a platform for building decentralized applications on the blockchain. It launched in 2015 and today is one of the largest tokens on the market, second only to Bitcoin.
You can write your own application on Ethereum’s platform, and it would be hosted by every computer connected to the network—the same way a website lives on a server. It’s a bit like Microsoft Word, but the difference is that hundreds of people can host it at once instead of just one computer.
Ethereum’s token goes by the name Ether and works like a vehicle to move around on their platform. It is also traded as a cryptocurrency and has recently gained more than 400% in value over the last three months.
The main point of difference between Ethereum and Bitcoin is that Ethereum does not function as a straightforward payment system like Bitcoin; it also includes programming language, allowing developers to build their own apps.
Is cryptocurrency an actual coin?
When you hear about cryptocurrency, what’s the first image that pops into your head? The answer to this question might tell you whether or not such currencies are actually coins.
Cryptocurrencies (CC) like Bitcoin, Litecoin and Dogecoin have been getting a lot of press lately for many reasons: they’re surging in value, the market is becoming more mainstream, and they are being recognized by the U.S. government as a way to pay taxes. So what exactly is it?
CCs don’t exist in physical form, but are stored entirely through transactions recorded in a digital ledger using cryptography (hence the term cryptocurrency). The coins themselves are mathematically generated according to predefined algorithms, and a finite amount of coins can be created.
** Note: we do not provide any investment advice and all opinions in the following article. Consult a financial advisor before investing in any cryptocurrency. **