New to Cryptocurrencies? Here’s What You Need to Know

Also known as “crypto,” cryptocurrencies are digital currencies that you can use to pay for products or services. Unlike traditional currencies or fiats, cryptos use online ledgers with tight cryptography, securing online transactions.

However, most crypto users don’t spend the currencies, they are trading them for profit. Moreover, cryptos are also the technology behind gambling site’s fast transactions, like the ones that you can see at the CasinoVibez.

Bitcoin is the most popular cryptocurrency. Its volatile price reached around $65,000 in April this year before losing almost half its value the following month.

If you are planning to dive into the crypto world, below are the things that you need to know.

Cryptocurrency explained

Cryptocurrency is a digital currency that you can spend in exchange for online services or products. Many companies have offered their own currencies called tokens that you can trade for the products or services they provide. You can compare it to arcade tokens or casino chips. You will need to exchange real money to digital currency and use it to buy anything they offer.

Cryptocurrency works through blockchain technology. It is a decentralized technology scattered across many computers that record and manages transactions. Security is one of the best features of this technology.

Bitcoin is not the only cryptocurrency

There are more than 10,000 various cryptocurrencies circulating in the blockchain and traded publicly. These digital currencies continue to multiply and raise money via ICOs or initial coin offerings. In May 2021, cryptocurrencies’ total value reached $1.7 trillion. On the other hand, the total value of Bitcoins and other top cryptocurrencies has reached around $753 billion.

Top cryptos by market capitalization

Below are the top five largest trading cryptos by market cap tracked by cryptocurrency analytics and data provider:

• Bitcoin ($735.3 billion)
• Ethereum ($324.2 billion)
• Tether ($61 billion)
• Binance Coin ($57.5 billion)
• Cardano ($54.6 billion)

What makes cryptocurrencies popular?

Digital currencies attract many supporters for various reasons. Below are some of the main reasons:

Supporters see digital currencies like Bitcoin as the future of currencies making a lot of people eager to buy them now, expecting them to become more valuable.

Some supporters understand that these digital currencies are not managed by the central banks. They like this fact as the banks tend to reduce money’s value through inflation.

Blockchain, the technology behind cryptocurrencies, is far more secure than regular payment systems.

Some investors prefer cryptocurrencies as their value goes up without interest in their long-term acceptance as a good way to move money.

How to buy cryptocurrency?

You can buy cryptos like Bitcoin by buying them with real money. Others will require you to pay with Bitcoins or other alternative digital currencies or “altcoins.”

Before buying any cryptocurrencies, you will need a wallet, this is an online app where you can keep your digital money. You also need an account on a reliable exchange where you can do all the transactions, like buying or selling your digital money.

Are they legal?

The legality of the cryptocurrency depends on each country. For instance, cryptos are all legal in the U.S., while it is banned in China. Moreover, you have to be careful when buying digital currencies outside the exchange as there are many fraudsters who use digital money to victimize investors.

These are just some of the basic things that you need to know if you want to start investing in cryptocurrencies. Moreover, you have to remember that digital currencies are incredibly volatile and speculative. Along with its high returns is an equally great risk.