A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a decentralised database that no one can change unless specific conditions are fulfilled.
Bitcoin is the first cryptocurrency, and also the birth of the blockchain (the underlying technology that most cryptocurrencies are built on). But today there are hundreds, if not thousands of cryptocurrencies. Some are like Bitcoin a store of value or P2P value exchange, some have added ‘smart contracts‘ like Ethereum to enable more features and opportunities.
Ah the million dollar question. And to be honest no one really knows. But the person or group behind Bitcoin is known by the name of Satoshi Nakamoto. And publicly no one knows who that is. A mystery that makes Bitcoin and blockchain somewhat more interesting according to us 🙂
You can find the original whitepaper to Bitcoin here.
We are definitely no financial advisors. But by looking at the history of Bitcoin and cryptocurrencies in terms of market value, then we can say for sure that’s a more volatile investment. Meaning the highs and lows are more extreme. And right now there are few regulations in place to stabilise the price. So that means potentially you could gain or lose more and quicker than with stocks and bonds.
But with that in mind, we are certain that the cryptocurrency space and projects are in its infancy, and there’s so much space for growth in the coming years. So you should definitely watch this space.
If you want to buy some Bitcoins, or other cryptocurrencies. Then you need to find an exchange or other service where you can buy it from. There are some exchanges where you can buy cryptocurrencies via bank transfer, credit or debit card, and then there are some where you can only buy or trade a specific cryptocurrency with another. For example buying a lesser known cryptocurrency called Altcoin 1 by trading it with some Bitcoins that you had previously bought.
Compare and find the best exchanges here to buy cryptocurrencies
Read more in our guide here about getting started with crypto
We have created this guide to help you understand what options you have available when you want to sell your Bitcoins or other cryptocurrencies for cash. At some point you will be looking to ‘cash out’ Bitcoin to cash, or so called fiat money. These are your two best options according to us for cashing out:
Method 1 – Via www.Localbitcoins.com
Method 2 – Via fiat accepting exchanges (compare exchanges here)
Read the full guide here