Ever wondered what a cryptocurrency is? Here we will try to explain the basics about cryptocurrencies.
The short explanation of what Cryptocurrencies are is that they are so called virtual currencies that typically use a decentralised network to carry out secure financial transactions. The use of a decentralised network makes cryptocurrencies designed to be free from any government manipulation or control.
The most common cryptocurrencies
During the last couple of years we have significant growth in the numbers of different new cryptocurrencies. Today there are more than 1500 different cryptocurrencies listed on different exchanges.
Since the rise of the cryptocurrency there are two cryptocurrencies that still are the most popular. Those two currencies are Bitcoin and Ethereum (ETH). Another cryptocurrency that have seen an increased popularity in later years is Ripple (XRP).
Less common cryptocurrencies
There are more than 1500 different cryptocurrencies traded at this moment. We are not going to list them all here but some of the more popular ones are:
- Litecoin (LTC)
- Zcash (ZEC)
- Dash (DASH)
- Monero (XMR)
- Bitcoin Cash (BCH)
- NEO (NEO)
- Cardano (ADA)
- EOS (EOS)
Frequently asked questions about cryptocurrencies
Cryptocurrencies can seem complicated and for a newbie there are certainly a lot of questions to be answered. Here we try to answer some of the most frequently asked questions about cryptocurrencies.
What is Blockchain?
Blockchain is a software technology that the majority of all cryptocurrencies are built on. Blockchain uses a so called peer-to-peer network of computer nodes to verify all cryptocurrency transactions and the ownership of the cryptocurrency.
What is the difference between coins and tokens?
Cryptocurrency coins are intended to be used to buy and sell goods and services as an alternative to traditional currencies such as the dollar, euro or yen. Bitcoin is by far the most popular cryptocurrency coin.
Cryptocurrency tokens, on the other hand, are designed to be use as payment for the use of single-purpose blockchain platforms like Ripple or Ethereum.
How can I buy cryptocurrencies?
The buying and selling of cryptocurrencies is becoming more and more popular. Today there are several cryptocurrency exchanges and depending on what cryptocurrencies you are interested in the is no easy way to recommend a specific exchange. Some of the largest cryptocurrency exchanges are listed below: