What does crypto mean?

Understanding Cryptocurrencies

What does crypto mean? Crypto is the short form of cryptocurrency.  It refers to a kind of virtual currency derived from computer code and sent over a peer-to-peer blockchain network. Crypto differs from the conventional currencies in that they no central authority issues or regulates their use. They are based in decentralized systems, which imply that no one controls the blockchain network.

To understand what does crypto means, it is essential to know how the system operates. Transactions are held on a public ledger where all crypto users can see them, and blockchains record them. Bitcoin is the pioneer in the crypto sector and was established in 2009 by Satoshi Nakamoto, the first to mine BTC. Unlike conventional currency, bitcoin exists in digital form. When someone sends a bitcoin over the network, a computer receives the information and creates a block. It is these blocks that users mine to get their local bitcoins.

Important Facts About Bitcoin

  • Satoshi Nakamoto is the first person to mine Bitcoin

  • Bitcoin users can only mine 21 million bitcoins

  • As a decentralized currency, the crypto is not owned by anybody

  • Bitcoin is the godfather of crypto, and it launched in 2009

  • Bitcoin prices experience volatility

  • Based on mining activity the last BTC will be mined in 2140

  • Bitcoin’s total value is around $100 billion

  • Anyone having computer hardware can mine bitcoins

  • Blockchains record and confirm transactions

  • The bitcoin code is open source anyone can download it

  • You can earn bitcoin by mining them, or through payments and direct purchases

If you are interested in learning about cryptos, check Local Bitcoin, What is Cryptocurrency, or What is Bitcoin Cryptocurrency

Conventional Money System

In the conventional money system, there is always a central authority that regulates the circulation and use of currency. It is the central bank or government that determines the value of the currency, and whenever you want to transact, you will have to involve an intermediary. The third parties, in this case, payment providers and banks, facilitate the sending of cash and confirm the transactions. However, the process is lengthy and involves a lot of paperwork, with transactions taking between three and seven days to be completed.

How Cryptos Work?

Part of understanding what does crypto means is getting to know how the cryptocurrency system works. The bitcoin blockchain enables people to send cash quickly, even cross border transactions that conventionally have been taking a lock. The process of sending bitcoin takes between one minute and one hour to confirm and complete the transaction. Most importantly, transactions are traceable since they are recorded in a public ledger accessible to everyone. Also, unlike in the conventional money system where the central bank can print additional notes during a downturn, the number of available bitcoins is limited to 21 million, and no additional bitcoin can be issued.

Best 3 Bitcoin Exchange


  • Affordable trading fees 0.1% to 0.2%

  • Binance is available in 180+ countries

  • BNB users receive 25% discount on trading fees


  • Charge 0.1%-0.4% trading fees

  • Accessible to traders in 130 plus countries

  • Users can buy bitcoin via credit/debit card and SEPA


  • Trading fees charged 0.1%-0.4%

  • Supported in more than 190 countries

  • Permits credit/debit purchase of cryptos


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Former OKCoin CTO Changpeng Zhao founded the Binance exchange in China in 2017 before the exchange could move its servers to Japan following the ban on crypto exchanges in China. By the beginning of 2018, Binance had established itself as the world’s largest and trusted exchange with a market cap of $1.3 billion. Besides being a trading platform for crypto, the exchange also offers digital wallets for traders to store their cryptos.

Binance supports trading of over 190 cryptos that include Ethereum, Bitcoin, Litecoin as well as its native token BNB. Around 10-12 billion trades are processed on the exchange daily, and it boasts more than 12 million active users every day. The native BNB token has risen from the ICO price if $0.15 growing over 16000% to over $15.

  • Reasonable trading fees 0.1%-0.2%


  • 25% off for users that use BNB token

  • Allows fiat withdrawals and deposits

  • Supports 190 plus cryptos

  • Staking rewards form 23 cryptos

  • EUR and USD credit/debit card bitcoin purchase

  • SAFU Funds as surety of users’ cryptos

  • Holds 320 users’ BTC

  • Hacked before and $40 million worth of crypto stolen

  • No long success records as it has been around for three years

  • Complex KYC process for fiat withdrawals


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Leon Li, a former computer engineer at Oracle, is the founder of Huobi Global exchange. The exchange was established in 2013 in China. It was relocated to Singapore following the ban on crypto exchanges in China. Huobi has expanded across the globe with subsidiaries and partner companies in countries like Thailand, Japan, and the US. Currently, the exchange has 1,300 staff and boasts close to 5 million users.

Huobi raised $10 million from a venture capital led by Sequoia Capital. The exchange is listed on the Hong Kong Stoke Exchange following the reverse takeover of Pantronics Holdings, where it acquired a 74% stake in 2018. Huobi has a native Huobi Token (HT), which has risen from the ICO price of $1.52 to more than $4.

  • Daily traders processed 2-5 billion


  • Supports 190 plus cryptos

  • Supports Swap and Futures markets as well as Margin Trading

  • Crypto purchase through credit/debit card permitted

  • Customer service available 24/7 and in two languages

  • 25% off on fees for HT users

  • User Protection Fund acts as security for user’s funds

  • Compatible with iOS and Android devices


  • Wire transfer crypto purchases not supported

  • Charge 8% transaction fee on credit card deposits

  • Withdrawals are limited to $2,000 daily band $10,000 monthly


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Kraken is one of the exchanges based in the US, established in 2013 after two years of development. In 2014 th3 3xchange raised $5 million through a Series A investment led by Hummingbird Ventures among other investors. The exchange is among the pioneer exchanges listed on Bloomberg Terminal.  Initially, the exchange supported only euro, bitcoin, and litecoin traders before the integration of other cryptos.

Currently, Kraken is available in more than 180 countries on 4 continents. The Platform offers 5X leverage on margin trading, and its more than 2.2 million users can access 10 plus cryptos and trading pairs.

  • Daily trading volume 110-300 million 


  • Accessible in 180 plus countries

  • 34 different cryptos supported

  • Five fiat currencies supported

  • No withdrawal limits

  • Transaction processing takes 1-5 days

  • Staking rewards available

  • Withdrawal charges depend on the type of crypto

  • Complex KYC verification process

  • High fees relative to the industry average

  • Slow customer support

​We receive an affiliate commission when you buy bitcoin via our link. Profit will be used for blockchain ecosystem development purposes. Before using this page, read the disclaimer.

Risks of Cryptos

Fluctuating Prices

One of the things one should understand ion what does crypto means is the volatility of prices. Crypto prices are very volatile and fluctuate considerably since they depend on market activity. Prices can suddenly drop or rise substantially within a day, and for traders, they can quickly lose their investment when the prices plunge. For instance, Bitcoin at one time dropped almost $1000 in an hour. Also, another risky aspect of cryptos is that there is no track record about the price volatility. Therefore, it is almost impossible to determine whether the volatility experienced at a given time is atypical or typical.

Widespread Scams

Another risk with cryptos is the growing number of con games and hacking where cryptos are stolen from exchanges and crypto-wallets. In the past, there have been a series of hacks. Estimates state that more than 70% of cryptocurrency was stolen, highlighting the security risks. Always save your passwords and account access keys securely, preferably in an offline device.

Exorbitant Fees From Providers

Some unscrupulous providers exaggerate transaction and trading fees to rip-off traders and investors. in some instances, these providers charge as high as 50% in trading and transaction fees. Therefore it is vital to be keen regarding such players, and you can compare best rates ion sites like BuyBitcoin24.com.


The website is only for the educational purposes. The website does not constitute the provision of any financial or investment advice in connection with the use of the website. You should consult with a financial or investment professional to understand the risks of cryptocurrencies. You should not invest more than you are ready to lose. We don't guarantee you any trading profit.  BuyBitcoin24 doesn't offer legal services or company registration in Estonia. You can contact our legal team via website www.consulting24.co.​ We receive an affiliate advertising commission from crypto exchanges and Bitcoin wallets. 

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