What does cryptocurrency mean? 

Understanding What Does Cryptocurrency Mean

What does cryptocurrency mean? A cryptocurrency is a revolutionary form of virtual currency that can be sent over s distributed ledger, often called a blockchain network. In simpler terms, a cryptocurrency is a virtual form of currency created from computer code that users can send to each other without intermediaries. Most importantly, cryptocurrencies are different from fiat currencies since no central authority controls them.

For starters, understanding what does cryptocurrency means requires one to get an insight into Bitcoin, the pioneer of cryptocurrencies. Bitcoin launched in 2009 and was founded by Satoshi Nakamoto, who mined the crypto first. Although Bitcoins are in virtual form, one can use conventional currency in purchasing Bitcoin. One can acquire Bitcoins through a process called mining whereby when someone sends cash, the information is sent into a computer, which forms a block, and it is this block that users will mine to get their local Bitcoins.

  • Bitcoin is the pioneer of cryptocurrencies established in 2009

  • Satoshi Nakamoto founded Bitcoin and was the first person to mine it

  • No central authority governs Bitcoin as it is based on a decentralized blockchain

  • Total bitcoins that can be mined are capped at 21 million

  • Bitcoin prices are highly volatile

  • The total value of Bitcoin is $100 billion

  • With computer hardware, anyone can mine bitcoins

  • Bitcoin transactions are recorded in blockchains

  • Going by the current mining, users will mine the last bitcoin in 2140

  • Earn bitcoins through mining, direct purchases or via payments

  • The bitcoin blockchain is open-source downloadable by anybody

To get more insight on cryptocurrency, check Buy Bitcoin Now, Top Places to Buy Bitcoin or What Does Crypto Mean

Operation of Fiat System

In the fiat currency system, there is a central authority regulating the use and circulation of currency. Mostly it is the central bank that governs fiat currency, and it vouches for its value. However, when transacting, especially sending and receiving cash, one has to involve a third party, a payment provider, or a bank that facilitates the transaction. The process is often long since a lot of paperwork is required, and it can take 3-7 days to complete transactions.

How Cryptocurrency Works

How the system works is part of understanding what does cryptocurrency means because it is different from the fiat system.  The Cryptocurrency system allows peer-to-peer transactions without third parties' involvement, making it a faster mode of cross-border transactions. Interestingly it can take between 1 minute and 1 hour to complete and confirm transactions recorded in a blockchain. Most importantly, since there is no central authority regulating the system, it is impossible to issue more bitcoins in the event of an economic downturn like in the fiat currency where the government can issue more notes.

Top 3 Cryptocurrency Exchanges

Binance

  • Charges lowest trading fees 0.1%-0.2%

  • Available in 190 countries

  • BNB users get 25% off on trading fees

Huobi
 

  • Charge trading fees between 0.1% and 0.4%

  • Available in 130 countries

  • Native Huobi token users get discount on trading fees

Kraken

  • Trading fees 0.1%-0.4%

  • Supported in 190 countries

  • Accepts SEPA, credit/debit card cryptocurrency purchases

​Highly TRUSTED

by www.consulting24.co

Binance exchange is among the most trusted and leading cryptocurrency exchanges in the world today. Changpeng Zhao, an ex-CTO at OKCoin, founded the exchange in 2017 in China and then later moved to Japan after Chinese authorities banned cryptocurrency exchanges in the country. In 2018 Binance rose to be the largest cryptocurrency exchange globally with a market capitalization of $1.3 billion.

The exchange supports trading of 190 plus cryptocurrencies that include Bitcoin, Ethereum, and Litecoin, among others, as well as its native BNB token. Equally, it offers traders with cryptocurrency wallets where they can store their coins. On average, Binance processes between 10-12 billion trades per day, and it has over 12 million daily active users. Its native token BNB has grown from its $0.15 ICO price to more than $15, which is an impressive growth of around 16000% in three years.

  • Cheapest exchange in terms of fees 0.1%-0.2%

 

  • BNB token users receive 25% discount on fees

  • Fiat deposits and withdrawals permitted

  • Over 190 cryptocurrencies supported

  • Allows credit and debit card purchase of cryptocurrency

  • Holds more than 320,000 users’ bitcoin

  • Has SAFU Funds which is a surety for users’ funds

  • Staking rewards for 23 different cryptocurrencies

  • Complicated KYC process for fiat transactions

  • Binance was hacked and around $0 million of cryptocurrency lost

  • Short success record as it has been around for three years

​Highly TRUSTED

by www.consulting24.co

Leon Li, an ex-Oracle computer engineer, founded Huobi Global in 2013 in China. However, following the ban on cryptocurrency exchanges in China in 2017, the exchange relocated to Singapore. In 2014 the exchange secured venture investment of $10 million from Sequoia and other investors. The exchange has grown considerably. Currently, it has operations in 12 countries that include Thailand, the US, and Japan, with 1,300 staff.

In 2018, Huobi listed in the Hong Kong Stock Exchange following the reverse takeover of a 74% stake in Pantronics Holdings. Currently, the exchange has over 5 million users and processes 2-5 billion trades daily. Its HT token has risen from ICO price of $1.52 to more than $4.

  • Supports more than 190 cryptocurrencies

 

  • Exceptional prices and high liquidity

  • Bilingual customer support available 24/7

  • Credit and debit card cryptocurrency purchases allowed

  • Discount on fees for native HT users

  • Suitable for Android and iOS devices

  • Margin trading, Swap, and Futures markets supported

  • USER Protection Fund

 

  • Wire transfer not supported

  • The withdrawal limit is $2,000 per day $10,000 monthly

  • Trading fee is 0.2% on all cryptocurrency assets

​Highly TRUSTED

by www.consulting24.co

Kraken is a US-based cryptocurrency exchange that launched in 2013 with its development having begun two years earlier. The exchange generated around $5 million in 2014 from a Series A venture investment round led by Hummingbird Ventures and Bitcoin Opportunity Fund, among others. It is one of the exchanges that first listed on the Bloomberg Terminal.

Initially, Krakken supported bitcoin, litecoin, and euro trading before integrating other cryptocurrencies. Currently, the exchange is available in more than 180 countries and boasts over 2.2 million users.

  • Provides high liquidity and buy limits

 

  • Funds processed between 1-5 working days

  • Supports fiver fiat currencies

  • Supported in over 180 countries

  • Supports around 34 different cryptocurrencies

  • No withdrawal caps

  • Margin trading supported

  • Staking rewards supported

  • Amount of fee charged to withdraw depends on kind crypto

  • Limited payment options

  • High trading fees

  • Complex KYC process

​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 Associated With Cryptocurrency

Price Unpredictability

Part of the things one should bear in mind in understanding what does cryptocurrency means is that their prices are highly volatile. The unpredictability in prices is because it is a market sentiment that determines the value of cryptocurrencies. At one time, Bitcoin dropped $1000 in a matter of hours. The volatility in prices makes cryptocurrency investment very risky as one can easily lose their money abruptly. Another tricky aspect of this volatility is that there is no track record of helping determine if the current volatility levers are typical or atypical.

Growing Crypto Scams

As a nascent industry, the cryptocurrency sector has been targeted for scammers and fraudsters that are out to rob unsuspecting investors and traders. Crypto is an internet-based currency. Nowadays, there are several fraudsters promoting scams on the internet with the promise of more returns if one sends a given amount of crypto, which they end up losing. Hackers are also targeting exchanges and crypto wallets to steal bitcoins and other coins. It is vital to keep your crypto wallet secure and safe by ensuring no one can access your account access and private keys.

Outrageous Trading Fees

Everybody in the cryptocurrency industry is out to make a kill, and some providers oft6e charge exaggerated fees when trading and buying cryptocurrency. It is exploitative, and thus investors should check sites such as BuyBitcoin24.com to compare the fees and get some of the exchanges that are offering the best rates.

Disclaimer

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. 
 

About Us

Support

Buy Bitcoin Globally

Learn

Community

  • LinkedIn
  • Twitter

© BuyBitcoin24.com All rights reserved