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What Is Cryptocurrency Used For?

Cryptocurrencies are known as a medium of exchange. They are digital assets, a subset of digital currencies. They have been conceived as alternative currency types that can be used for making payments without an intermediary. They have no physical dimension and for that reason are a type of virtual currency.

Still, given the fact that these types of currencies are quite new, they are still not widely used. There are a couple of directions for use given their concept:

  • For remittances
  • For trading
  • For making investments on the exchanges
  • For monetary transactions
  • As payment for different goods and services that have started to accept cryptocurrencies as a payment method.
1
Bitcoin
Bitcoin
$8,357.93
0.41%
2
Ethereum
Ethereum
$711.22
0.51%
3
Ripple
Ripple
$0.6874
0.76%
4
Bitcoin Cash
Bitcoin Cash
$1,229.90
3.44%
6
Litecoin
Litecoin
$136.84
0.15%
11
NEO
NEO
$60.452
0.43%
12
Monero
Monero
$199.73
-0.23%
13
Dash
Dash
$393.27
-0.46%

How to Trade Bitcoins?

First, you should know what Bitcoins are in order to be able to trade them or use them as a payment method. As we mentioned above, Bitcoin is the first cryptocurrency to become a decentralized digital currency.

Trading Bitcoins is essentially investing according to your technical analyses in the currency, depending on your prediction of its future movements. You need to keep track of various factors that influence the price movements such as future plans for the currency, government regulations, total coin supply and others.

Good to Know:

Crypto robots and brokers provide with essential tools for acquiring the necessary data for successful investments. Robots even offer an autopilot feature so that users can invest even if they have little knowledge of the industry in the beginning.

What is Bitcoin Market Cap?

Many of the newcomer cryptocurrency traders are not familiar with much of the established Bitcoin terminology. This is mainly due to the fact that they have not extensively applied it in their daily mining operations.

They will, at some point, have to learn most of them and it is always best to begin with the basic ones. A Bitcoin market cap is a term used to define the actual market value of the coin itself. It can also be described as ‘market capitalization’, its percentage range can vary a lot, and its purpose is to show what is the current value of a particular cryptocurrency.

Another thing for which it is often applied is to provide reliable data as to who the current market leader is (which cryptocurrency is most mined for and how many users operate with it). Since their invention, Bitcoins used to be the undisputed forerunner with a decade-long 80% share.

Good to Know:

This changed in the last couple of years with the emergence of other digital currencies, such as Ethereum, Ripple, and Litecoin.

What's the Difference Between Bitcoin and Ethereum?

Since we mentioned a couple of the other virtual currencies that have gained prominence over the course of time, we would like to pay specific attention to one of them – Ethereum and explain what makes it easily distinguishable from Bitcoins and their main contrasting points.

There is no other adversary on the cryptocurrency market which has managed to try and pull the carpet right from underneath the supposedly firmly placed Bitcoins. The latter faced serious criticism throughout the years, mainly because of the safety and security policies it applied.

This is where Ethereum emerged and filled in an existing gap. Users were eager to utilize the services of a digital currency mining tool which provides secure monetary transactions, contracts that could be yielded, and the ability to operate with more E-wallets.

Another distinctive feature of Ethereum is the short block period which one can additionally mediate and arrange and smoother confirmations. It is also more easily accessible than Bitcoins. One more key difference between the two is that more than two-thirds of all existing Bitcoins have already been mined for, whereas Ethereum is new and anyone can use it.

Users are also allowed to have a personal fund-raising campaign which is intended solely for the purpose of financing their very own projects. It can serve much like a cryptocurrency Kickstarter!

Ethereum is viewed by many people as innovative and bringing forth lots of ingenious features in the field of investments and entrepreneurship. This cryptocurrency mining instrument begins to greatly overshadow Bitcoins.

What’s the Difference Between a Broker and Exchanges?

The cryptocurrencies market emerged not so long ago. It has had a little over a decade to gain momentum. Like any other brand new innovation that could help people earn a side income, even if it is just a digitally-based one, the interest towards it has been reaching sky-high levels.

It is not a surprise that this increasing group of users, who may not have even the slightest idea of what they are dealing with, has a lot of questions. One of them surely concerns the difference between a broker and exchanges. We will try and simplify the answer as much as possible. Cryptocurrency exchanges are all operational platforms that provide services which allow users to freely buy and sell cryptocurrencies.

When people try and determine whether a given platform is a scam or legit, they must first check if the software has a transparent and reliable database of coins in cold storage. This means that it can provide liquidity to its actives.

The other way is to simply carry out an online check and get the answer from cryptocurrency platform reviews.

What is Cryptocurrency Mining?

Cryptocurrency miners basically make-up this digital market sector because they solve mathematical equations and problems in order to get a hold of more coins. Users also have a validating role as they approve all transactions that are being carried out.

A mutual agreement between the miners must exist in order for a particular blockchain to continue operating in a consistent state. This is referred to as a consensus. A non-consensus would mean that possible forks could appear in the network.

Forks occur quite rarely which makes mining for Bitcoins comparatively reliable. Another one of its strongest points is that it functions independently from the usual currency exchanges. It provides the individual with a certain degree of financial independence and this is why it is becoming more and more popular.

 

Bitcoin
Bitcoin
$8,357.93
BTC 0.41%
Ethereum
Ethereum
$711.22
ETH 0.51%
Ripple
Ripple
$0.6874
XRP 0.76%
Litecoin
Litecoin
$136.84
LTC 0.15%

Live Market Stats

What Is the Hottest Coin to Invest In?

The number of cryptocurrencies is rapidly growing parallel to the increase in popularity. As of July 2017, there are more than 900 cryptocurrencies available over the web and new ones are being constantly created. If we are to compare them through the market cap (market capitalization), BitCoin is the largest blockchain network as of August 2017. It is followed closely by the second most popular cryptocurrency – Ethereum.

It is hard to point the single best cryptocurrency to invest in because they all have different prices and changes affect them differently. This is one of the most dynamic industries and changes can happen at any given moment. Bitcoin might still be the most popular cryptocurrency available for trading but its competition to Ethereum is close and it might surpass in the years to come.