Cryptocurrencies are digital money that is not subject to government or banking regulation. Instead, all transaction processes are handled by complex cryptographic mechanisms. Cryptoassets have no physical form, they exist online, and all transactions are recorded in a public ledger.
Cryptocurrencies can be transferred worldwide without intermediaries. At the same time, transactions are secured.
The first known cryptocurrency was Bitcoin; the introduction of BTC was the impetus for the development of the entire cryptocurrency market, which then made so popular cryptocurrency trading and investment.
The price of cryptocurrencies depends on several factors:
- The complexity of receiving cryptocurrency
- External conditions of the world economy
- Regulations of some countries
- News background.
How Do Cryptocurrencies Work?
Blockchain is the basis of all crypto assets. All transactions of crypto-holders are recorded on the blockchain. Most cryptocurrencies are obtained through mining.
Mining is a method of creating new coins based on Proof-of-Work protocols and involves using powerful equipment to solve complex mathematical problems. Miners are spread all over the world. Each time a new block is created, miners receive a reward. This is how they receive their coins.
What is Trading?
Trading is a way to profit when you buy and sell cryptocurrency, speculating on its price changes. Since the crypto market is highly volatile, it is possible to buy cryptocurrencies at lower rates and then sell them when the market skyrockets at higher prices, generating income. There are many strategies to use for efficient trading.
What are the Best Places for Cryptocurrency to Buy?
Register on popular crypto platforms, such as WhiteBIT or Coinbase, to buy crypto. They offer up-to-date coin prices, low fees, a convenient interface that will suit a beginner trader, and robust protection of transactions. Both platforms allow for demo trading, which means you can practice to buy and sell cryptocurrency, without fear of losing your own funds.