It’s not the first time that Cryptocurrency is grabbing all the headlines; we have witnessed it in the past for good and not-so-good reasons. But, ever since Bitcoins have skyrocketed and reached an all-time high, the world is now genuinely intrigued to know what exactly is Bitcoin, and most importantly, what is Cryptocurrency and why is it affecting investors around the world? Why is it that one tweet changed the entire market, and how is it working exactly?
This article will briefly touch upon what constitutes as Cryptocurrency and everything a beginner might fancy knowing before putting the big bets in the trading business. “There’s so much that needs to be understood about Cryptocurrency, and it’s also important to know that it’s more than just Bitcoin,” says Brandon Mintz, CEO of Bitcoin Depot. Bitcoin Depot is one of the largest retail networks of Cryptocurrency access points in the US. It offers cash-to-Crypto based services along with the traditional facilities of trading Cryptocurrencies. Are you getting overwhelmed by these words? We have crafted everything in a simple language for you; read on to learn more.
What is Cryptocurrency?
Like the US has US Dollar, European countries have Euro, India has Rupee, and so on, Cryptocurrency is the digital world’s currency. It can be of different types like Bitcoin, Ripple, Dogecoin, Litecoin, Dash, just to name a few. Crypto like Bitcoin is famous for its decentralized nature, which means that the banks or the government can’t regulate them.
Valuation of Crypto & its Market
Given its nature of being decentralized, predicting Cryptocurrency’s trends is usually a broad guess. You can follow the trends, but it might just surprise you any day of the week. “That’s why Cryptocurrencies are high-risk investments. This also makes them equally rewarding, and since the Bitcoin and other digital currencies like Dogecoin are seeing an upsurge, more and more people now intend to invest in these currencies,” explains Brandon. Certain factors affect a Cryptocurrency’s price. Volatility has to be the primary one. The amount of attention it’s getting from investors also plays a key role. It’s much like what we recently witnessed in the case of Elon Musk’s tweet and Bitcoin’s overnight boom.
Types of Cryptocurrencies
While there are as many as 5,392 Cryptocurrencies, let’s address the top 3 ones.
- Bitcoin (BTC): BTC recently hit its all-time high and currently stands at 46,911.30 USD. It’s one of the most popular Cryptocurrencies accepted by several businesses in exchanges for goods and services.
- Ethereum (ETH): it’s a fierce competitor to BTC. This altcoin is used just like BTC but more for trading purposes. However, ETH projects an optimistic graph in its future.
- Litecoin (LTC): LTC was created to make Cryptocurrency easier with a faster block generation.
“Dogecoin has also emerged recently due to another tweet by the gen-z’s favorite entrepreneur. It’s amusing to see that it was just created as a joke but now has taken a real form and is getting some serious business in the trades,” says Brandon.
How to get your DigiCoins
There are multiple wallets existing online that allow you to store your digital money. However, safety remains to be a major concern with these wallets. There’s also a limitation in terms of delayed transactions and phishing scams.
“Bitcoin Depot is enabling convenient access to Cryptocurrencies with just a 2-minute transaction process time which is promoting the growth of digital currencies,” says Brandon. The company has installed more than 2,000 ATMs that allow you to get a Cryptocurrency in exchange for cash in just a few simple steps.