What is the meaning of cryptocurrency?

Understanding what Is the meaning of cryptocurrency.

If you are conversant with cryptocurrency, you might have heard about blockchain technology. It is a peer-to-peer tech underlying the bitcoin network and other cryptocurrencies. Blockchain permits data storage in thousands of servers across the globe through a distributed public ledger technology. It is based on open-source code, and anyone on the network can see other users' entries in real-time.

However, it is easier to understand what the Blockchain is because it is essentially a chain of blocks but nit in a traditional sense. The blockchain network is a revolutionary technology with the potential of eliminating the amount of time to confirm transactions, streamline supply chains, save money, and change IT in ways never seen before. The first cryptocurrency to employ blockchain tech is Bitcoin, which was founded in 2009 by Satoshi Nakamoto, who has remained anonymous to date. When users send each other bitcoins, the transactions are recorded in a blockchain, and it is the blocks in the chain that users mine to earn local bitcoin.

  • Bitcoin is the godfather of cryptocurrencies established in 2009

  • The founder of Bitcoin is Satoshi Nakamoto and he was the first to mine it

  • The bitcoin blockchain has a maximum of 21 million bitcoins that users can mine

  • The bitcoin blockchain is decentralized, and nobody owns it

  • Transactions on the bitcoin blockchain follow a 3-way book-entry system 

  • With a computer, anyone can mine bitcoin

  • The bitcoin blockchain code is open source accessible by everyone

  • Blockchains confirm Bitcoin transactions

  • Bitcoin price experiences high volatility

  • Bitcoins can be earned through mining, direct purchases, or payments for products

You can learn more about what is the Blockchain, here Buy Bitcoin, What does cryptocurrency mean or What is the meaning of cryptocurrency.

Regular Currency System

In the conventional currency system, there is a central authority that controls currency circulation and is responsible for vouching for the currency's value. When sending money in the conventional money system, one has to involve a third party, which can be a payment provider or bank, to facilitate and confirm the transaction. There is a lot of paperwork involved, and the process can take between 3 and 7 days to complete transactions.

Bitcoin Blockchain System

The blockchain technology has revolutionized banking as well as brought about cryptos. The distributed ledger tech has eliminated the need to keep a lot of records, saved time, and streamlined cross border transactions that could typically take up to seven days in the conventional money system. Most importantly, in the bitcoin blockchain, it is easier to trace and track transactions because it is based on a public ledger, there is a lot of transparency. As a decentralized system, third party intermediaries are not involved when making transactions. A unique aspect of the bitcoin blockchain is that the coins are capped at 21 million, and more cannot be issued, unlike in the conventional system where the central bank can print more money.

Best Exchanges To Trade Bitcoin


  • Low trading few 0.1%-0.2%

  • More than 30 million users

  • Daily trading volume is over 10 billion


  • Trading fees 0.4%-0.1%

  • Boast around 5 million users

  • Daily trades more than 2 billion


  • Trading fees range from 0.1%-0.42%

  • 10 million users trust the exchange

  • Daily trading volume rangers from 200-400 million


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Undoubtedly Binance is the largest crypto exchange globally in terms of volume and trusted by over 30 million users. Changpeng Zhao, a former OKCoin CTO, founded the crypto exchange in 2017 in China, but because of cryptocurrency regulations in China, they relocated to Japan. By 2018 Binance had become one of the top exchanges globally with a market capitalization of close to $1.3 billion.

The exchange supports more than 190 different cryptocurrencies that include its native BNB token, Litecoin, Ethereum, and Bitcoin. Apart from being a bitcoin trading platform, Binance offers its users crypto wallets where they can safely and securely keep their bitcoins. In a day, the exchange can process between 10-12 billion trades.

  • Cheapest exchange charging fees of 0.1%-0.2%


  • Bitcoin purchase through wire transfer, debit and credit card supported

  • Users can earn 1%-20% annual interest for having crypto in their Binance account

  • BNB users receive 25% discount on fees

  • Wide range of cryptocurrencies supported

  • Staking rewards for up to 23 cryptocurrencies

  • SAFU Funds guaranteeing for users’ funds

  • Fast processing speeds of 1.4 million orders per second

  • A limited number of payment options

  • No success history has been around only 3 years

  • Complex KYS when dealing in fiat currencies


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Huobi Global is also another top crypto exchange with roots in China and was established 7 years ago. However, just like Binance, the exchange moved its operations to Singapore due to the unfriendly crypto exchange regulations in China. In 2014, Huobi raised around $10 million through venture capital financing led by Sequoia Capital and other investors.

The exchange has grown significantly, and currently, it has operations in 12 countries that include Japan, the US, and Thailand. Huobi is listed on the Hong Kong Securities Exchange, following a 74% stake in Pantronics Holdings in a reverse takeover. There are currently five million Huobi users, with daily traders ranging between 2 billion and 5 billion.

  • Trades 2-5 billion a day


  • High liquidity and best prices

  • Margin trading and margin funding available

  • Compatible with Android and iOS devices

  • Offers derivative trading for Swap and Futures markets

  • Has user Protection Fund to protect user’s funds from hacking

  • Customer support available in two languages

  • OTC Huobi


  • A trading fee of 0.2% on all crypto assets

  • Wire transfer purchases not allowed

  • Charge 8% fee on credit/debit card deposits


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Another best exchange to trade bitcoin is Kraken, which was founded in 2013 in San Francisco after two years of development. Initially, the exchange only supported euro, bitcoin, and litecoin trading before integrating other digital assets. In 2014, the exchange raised $5 million through a Series A funding round from Hummingbird Ventures and other venture capital investors. The pioneering exchange to list in Bloomberg Terminal and currently, the exchange boasts 2.2 million users and is available in more than 180 countries.

  • High liquidity and buy limits supported


  • Trading volume 100-200 million per day

  • Supported in 180 countries

  • The exchange promotes trading of 34 digital assets

  • Fiat deposits supported

  • No withdrawal limits

  • Wire transfer, SWIFT and SEPA transactions supported

  • Staking rewards available

  • Payment options are few

  • Suitable for only experienced traders

  • Charge high fees relative to the industry average

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Bitcoin Blockchain Risks

Volatile Prices

One of the things users should know about Blockchain is that the digital currencies pegged on this technology experience high price volatility. The prices can rise and fall significantly within a day, which means that if the prices plunge massively, one could incur huge losses on their investments. For instance, the Bitcoin price sometimes backdropped almost $1000 in a matter of hours. This high volatile shown by these blockchain-based digital currencies is due to their nature of relying on market activity and sentiment to establish value.

High Scamming

There is a proliferation of bitcoin scams and other cryptocurrencies where some opportunities are out to defraud investors and traders, considering this a nascent industry. Scammers promote fake promotions with the promise of doubling unsuspecting user's bitcoin only to end up stealing everything. Cyber theft is also high in the sector as hackers target exchanges and users’ crypto wallets to steal bitcoin in the past, more than $700 million has been stolen from various exchanges and crypto-wallets.

High Trading Fees

Some providers are devious and are out to exploit investors and traders by indicating that their fees are low but include other hidden charges, making trading and transaction fees high. This exploitative behavior is disadvantageous for traders and investors when purchasing bitcoin. For investors, they can get a comparison of the best crypto exchanges on BuyBitcoin24.com to get recommendations of trustworthy providers.


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. We receive an affiliate advertising commission from crypto exchanges and Bitcoin wallets.