What is a Cryptocurrency?

The best definition of cryptocurrency is that it’s a digital currency. It can be used as a means of payment and even as an investment. It’s simply money without any

physical representation.

Today, there are over 10,000 cryptocurrencies in the market. Many of these coins serve specific purposes, which

encourage people to invest in or buy them.

The most popular cryptocurrency is Bitcoin. It was the first to be

created, going live in 2009. But, Bitcoin’s popularity led more people and companies to createtheir own cryptocurrencies.

Some cryptocurrencies help people make payments online, while others can focus on things

like privacy, gaming, and app development. There are even stablecoins like USDT, which act as digital forms of a fiat currency.

Bitcoin

Bitcoin is the most popular and most valuable cryptocurrency. It was the very first cryptocurrency to be created, and it has existed since 2009. Bitcoin’s popularity led to the rise of other cryptocurrencies.

Bitcoin’s focus is to help people send money and make transactions quickly and easily. It is less expensive than other

payment methods, and works in any location.

Bitcoin is also decentralized, meaning that no single entity controls it. All Bitcoin transactions are verified through a process known as “mining,” a fancy name for ‘accounting’.

No one actually knows who created Bitcoin.

Ethereum

Ethereum is one of the oldest cryptocurrencies in the world. It is also the leading ‘altcoin’. Many

people fondly call it the silver to Bitcoin’s gold.

Ethereum’s value mostly comes from the popular Ethereum blockchain which helps developers who want to build

decentralized applications.

Ether or ETH is the currency that powers the Ethereum blockchain. So, as more people use the blockchain, Ethereum’s

value rises.

Ethereum was founded in 2015 by several blockchain experts, including Joseph Lubin, Charles Hoskinson, and Vitalik Buterin. Their goal was to build a strong

network that could run on its own and allow app creators to build freely.

BlockChain

Blockchain is the technology behind most cryptocurrencies. It can be described as a container for recording information securely.

Cryptocurrency transactions and data are added to a “block.”

Multiple blocks chained together make up the blockchain.

Blockchains and their data are duplicated across many computers on the network. So, hacking a blockchain is almost

impossible.

Once transactions fill a block, it has to be mined and added to the blockchain. Mining involves verifying all the block’s transactions, and it’s done by a computer on the network. After the process, the computer’s owner gets coins as a

reward.

Cryptocurrency Trading

Cryptocurrency trading means buying and selling cryptocurrencies for profit.

Cryptocurrencies are especially profitable because their prices move very quickly. Unlike stocks, you can see a cryptocurrency double in price in a day. But, this also means that cryptocurrencies can be very risky.

There are different crypto trading strategies. Some people are day traders, so they enter and exit

positions in just a few hours. Others could hold their

positions for weeks or even

months.

Crypto wallets

Crypto wallets are like bank accounts for crypto. They help you hold and store your

cryptocurrencies. Crypto wallets are always connected to a

cryptocurrency’s blockchain. So, when you send or receive money in that wallet, its balance is immediately updated.

Wallets have public and private keys. The public key is what you send to someone who wants to

send you money – like a bank account number. But, you use the private key to confirm outgoing transactions – like the

password on your bank app.

About Quidax

Quidax is a Cryptocurrency trading platform for buying and selling cryptos. Just go to quidax.com or you can download theri app on Google play and apple store. You can use as low as 2000 naira or 3$ to start trading.

You can use this quidax referral code when signing up, you will get a reward: Qolusola79