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Browse below to find answers to the most common questions about Cryptocurrencies.For more information visit our blog!

WHAT IS CRYPTOCURRENCY?

A cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.

EVOLUTION OF CRYPTOCURRENCY

Bitcoin? Ethereum? Ripple? A global virtual currency designed to work as a medium of exchange? 20 years ago, this was unheard of and deemed almost impossible, and yet as of today 3 in 4 people use cryptocurrency, and around 2.9 to 5.8 million Americans alone have invested, with hopes of making them better off financially in the future. 

Cryptocurrencies first emerged in 2009 when the world’s first decentralized currency, Bitcoin, was created. The core idea behind cryptocurrency was to create a secure and anonymous way to transfer currency from one person to another, and since then its value has skyrocketed and it’s been heralded as ‘digital gold ‘amongst its users.

Initially created by a Software Developer with the pseudonym Satoshi Nakamoto, to promote the anonymity of the currency, Satoshi Nakamoto had to develop something new, this is when Blockchain, the digital ledger of Bitcoin transactions, was created. Ripple, a real-time gross settlement system was introduced shortly after this. The currency itself is meant to enable the near-instant and direct transfer of money between two parties. Any type of currency can be exchanged, from fiat currency to gold, to even airline miles. They claim to avoid the fees and wait times of traditional banking and even cryptocurrency transactions through exchanges. Its become so popular within the market that Banks are actually using this digital asset today worldwide.

NEW CURRENCY EMERGE IN THE MARKET

Like most things in life, you bring out something new to the market and it’s not long before it’s copied, and this was the same for Bitcoin. In 2011, rival cryptocurrencies started to emerge into the market, with Litecoin, Namecoin, and Swiftcoin to name a few all making their debut. This is not surprising considering the market value as of today for the Bitcoin currency is a whopping $44 billion. Because of this, there are new cryptocurrencies being created every single day by Software Developers worldwide, all hoping to become the next Bitcoin star.

While 2017 saw the biggest spikes in value across the thousands of live Cryptocurrencies, they are still not entering our day–to–day lives. Most individuals who own substantial amounts of Bitcoin are doing so as an investment, rather than looking to utilize the currency as a new way to purchase things online.

Shortly after the unprecedented boom in 2017, the beginning of 2018 saw a different story. The market crashed and fell by 65% leaving newcomers to the market unsettled as to whether it will ever pick up again.

With the future of Bitcoin looking volatile, to say the least, here are some pros and cons to help you decide whether to invest in the world of cryptocurrency.

WHAT IS BLOCKCHAIN?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.

WHAT'S THE DIFFERENCE BETWEEN COIN AND TOKEN?

Coins refer to cryptocurrencies built on their independent blockchain network. The most famous example is Bitcoin (BTC), which is also the world’s largest cryptocurrency by market capitalization.

Tokens refer to cryptocurrencies that don’t have a blockchain network of their own. Instead, these cryptocurrencies are built on another blockchain. Users can create digital tokens using one of the many platforms in the DeFi (Decentralized Finance) ecosystem.

To sum up, some of the key differences between a digital token and a digital coin are as follows: Digital coins are based on their native blockchain network, tokens are built on the existing blockchain. Digital coins can be used for processing payments, but tokens are suitable for multiple needs. Digital coins are more difficult to create than tokens that can be built based on the existing blockchain like Ethereum. Digital coins are mostly distributed through mining, while tokens became popular

Crash course tutorial for all beginner cryptocurrency users. 

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