There are loads of cryptocurrency trading sites available online where you can buy and sell different types of cryptocurrencies.
There are lots of brokers where you can buy digital currency online, and we can help you find one which works best for you.
Cryptocurrency trading sites have been popping up at a rate of knots. Ever since the press started to report on the staggering financial gains that Bitcoin has been making, people have understandably been jumping on the bandwagon. Cryptocurrency trading sites allow you to follow trends in the markets and buy and sell freely, with varying fees applicable. There are so many to choose from that it can be a bit of a minefield which is why we suggest thorough research before you enter the markets.
There’s a lot of buzz surrounding cryptocurrency in the press at the moment, but many people are still largely in the dark about it all. What is it, where do you buy cryptocurrency, how much does it cost? With so many questions surrounding its volatility, knowing what to do to buy digital currency is extremely important.
Cryptocurrency is a strictly digital currency. There’s no bank, no physical currency and it’s not affected by inflation. In order to purchase cryptocurrency and sell it you need an online wallet. An online wallet is much like a real-world wallet in that it keeps your money and your transactions together in one place.
Once you have your online wallet you are free to make and receive cryptocurrency payments. There are now over 1,000 cryptocurrency specifications, although the original one remains the most famous; Bitcoin. Buying digital currency has never been as popular or had as many choices, so take our advice if you are thinking of entering this world of virtual money.
If you are wondering how to buy cryptocurrency then you’re not on your own. The press has only been covering the best and worst points of this new currency and not reporting how it actually works.
Very simply, the money does not physically exist, it is all digital. To transform legal tender (otherwise known as fiat money) into digital currency you need to link your bank account or credit card to an online wallet and register for a cryptocurrency address. Most online wallets are now available in the form of an app and it will hold your virtual currency. Your address is in two parts; your public address which is where payments will be made to and taken from. The second one is your private address, which works as a password to keep your wallet safe.
Once you have opened your wallet and made sure that it is secure you can then buy cryptocurrency. This is where a broker comes in. They will crack the code that accompanies every transaction to ensure it is safe and get paid by charging you a fee.
The cryptocurrency exchange rate is notoriously unstable. The value of a Bitcoin has seen it rise from being worth $0.10 in 2008 to $17,000 in 2017. You could pay for a service or item with a form of digital money only to find that it has tripled in value a few hours later. You can either profit handsomely or lose royally, it’s so unpredictable. In the case of Bitcoin, those who invested in it a few years ago have benefitted hugely from having faith in it.
In any cryptocurrency exchange there will be risk involved. It’s value may dip and change wildly, the trick is to find a responsible broker. You can also trade for different kinds of cryptocurrencies. Think of it as changing your money to the local currency before going on holiday. Again, there are lots of new digital currencies to choose from so choose your exchanges wisely.
The best cryptocurrency to buy now is Bitcoin. The one that started it all is the one that gets the most headlines and is currently worth the most. There are fears that too many people will try to jump on the Bitcoin bandwagon and it will implode and become worthless again. The next potential currency to take its place at the top appears to be Ethereum. It follows much of the same process as Bitcoin and is tipped to overtake it soon.
As with all cryptocurrencies, the best one to buy now may change in the blink of an eye, so it pays to keep an eye on the current trends to stay one step ahead.
The top cryptocurrency list is as changeable as the weather. Its epic rise to the public conscience means that more and more people are trying to get in on the action. As a consequence, new cryptocurrencies are being released all the time. Investing in digital currency is like investing in the stock market - prices rise and fall, as do products and companies.
The best place to buy cryptocurrency is the one that offers you the least amount to pay in fees and has an established background. Companies such as Etoro, City Index and Avatrade have great incentives and are highly regulated. Treat it as you would do any financial investment and do your research. If an offer is too good to be true it probably is, so go for an established name with fair terms and conditions.
So, now you know how to purchase cryptocurrencies are you curious to know where it comes from? It uses a process called mining. So what is cryptocurrency mining?
Every transaction that is made is registered on something called the blockchain. The blockchain works like a traditional bank ledger and has the details of every transaction that is made. The blockchain list is also available to everyone that has cryptocurrency.
The blockchain is run by ‘miners’. Mining uses a sophisticated computer and program to tally all the transactions and crack the mathematical codes that accompany it to make sure that it is secure.
Because the information is publicly available, miners have to compete against their peers to be the first ones to crack the blockchain and get paid. Currently, a company named Antpool account for 25% of all successful mining.
Mining can be lucrative, but it is extremely difficult to get off the ground as it requires a lot of expensive hardware and the market is fairly saturated already.