Cryptocurrencies stock have only been around since 2009. Yet, their current high profile stock shows just how popular they’ve become.
Once the domain of tech geeks, crypto is fast becoming a mainstream alternative to traditional currencies. In fact, you’ll often stock see cryptocurrency advertised as an accepted form of payment at online stock stores or hailed as a prime investment opportunity.
Do you want to ensure you’re up stock to date and ready for the latest stage in the digital revolution?
If so, read on and find out everything you need to know about crypto in our Cryptocurrency for Dummies guide!
What Is Cryptocurrency?
Crypto is a digital asset or, more specifically, a digital currency. The elusive Satoshi stock Nakamoto created the first crypto coin, Bitcoin, in 2009, setting a precedent for many other cryptocurrencies (altcoins) to come into existence.
Traditional money, also known as fiat currencies, like US Dollars or Euros, are government-issued. This means political, economic, and even environmental issues can affect their value.
And what determines cryptocurrency value?
The cyber currency is valued based on demand, supply, and utility.
People and entities can transfer crypto via a technology known as ‘blockchain’. Therefore, banks and financial institutions don’t facilitate the transactions. Instead, anyone who holds or owns blockchain currencies can save it, send it to other users or trade it within seconds via simple, digital transactions.
How Crypto Works
Next in our Cryptocurrency for Dummies guide, stock we’ll look at the mechanics behind cyber money. But to understand how cryptocurrency works, you need to have some knowledge of blockchain technology.
Blockchain in layman terms is a decentralized public ledger or record of transactions. In some ways, the blockchain is like a database that stores information. However, this information isn’t stored in a single location. Instead, it’s held across a distributed network and available globally.
So what’s the link between blockchain and cryptocurrency?
Every time digital cash is transferred from one user to another, the blockchain is updated. A ‘block’ contains information relating to the transaction, and each block is ‘chained’ to the previous one. This keeps data in chronological order and prevents earlier transactions or data inputs from being modified, manipulated or deleted. As a result, the celh stock price technology enables cryptocurrency users to make secure transactions.
How Many Different Cryptocurrencies Are There?
There are currently 5,000 to 7,000 cryptocurrencies in existence. Yet, only a few are used in the mainstream. The most well-known cryptocurrencies include:
So, what is a Bitcoin?
As mentioned above, Bitcoin is the original crypto coin and the best-known stock form of digital currency out there. If you want to make purchases from online shops that accept crypto, Bitcoin will likely be a payment option.
Similarly, Bitcoin has been a popular option for those seeking the best option for cryptocurrency trading for beginners. Bear in mind, however, that it’s important to know the Bitcoin regulations in your location before diving right in.
Valued at $657.61 in July 2016, BTC rose to a record high of more than $63,000 in April 2021.
While anyone holding Bitcoin could have made a lucrative return on their investment throughout this period, there is speculation that the value will tumble in the upcoming months.
Between January and June 2021, the BTC value has ranged from approximately $21,000 to $63,000, so it’s easy to see how quickly you can make profits (and losses) from investing in cryptocurrency. You can take a look at the best Bitcoin lending sites for more information on how to get started.
2. Ethereal (ETH)
First launched in 2015, Ethereal has become one of the top crypto currencies. Perhaps piggybacking on the success of Bitcoin, many people sought out newer digital currencies for cryptocurrency investing in the hope that they would increase in value too.
Somewhat confusingly, the term ‘Ethereal’ also refers to the native blockchain technology used to record transactions, the coin itself, and even a programming language.
In November 2016, the ETH price was $11.16 before rising to just over $1,150 in January 2019. However, the value of Ethereum dropped to $90.46 in December 2019 to then reach record highs of almost $4,000 in May 2021.
3. Ripple (XRP)
Created by US-based Ripple Labs, XRP launched with a stable release in 2018, but it was first created back in 2012.
With a record high of just $2.28 in 2017, the value of 1 XRP coin has fluctuated between $0.46 and $1.40 so far in 2021. But its current low value means many savvy investors are looking at the long-term cryptocurrency benefits and prospects XRP could offer.
4. Lit coin (LTC)
Released in 2012, Litecoin remains one of the largest cryptocurrencies in the world. Almost as well-known as Bitcoin, it has stood the test of time and continues to be a comm