What is a cryptocurrency? A simple explanation

After 2017, the words “Bitcoin” and “cryptocurrencies” reached the ears of millions of people. The rise in the price of Bitcoin to $20,000 attracted the gaze of technology lovers and investors to the growing cryptocurrency market. But, what is a cryptocurrency? And what is there to know beyond the surge of Bitcoin? Let’s go through the ins and outs of cryptocurrencies, how they work, and how you can acquire them.

Cryptocurrencies…what are they?

A cryptocurrency is a digital medium of value exchange whose design is based on cryptography. This means that cryptocurrencies are generated from the resolution of mathematical problems known as cryptographic functions. After completing these cryptographic functions, the exchange of value is immutably recorded using a distributed digital ledger known as a blockchain.

Would you like to know more about the blockchain technology? In this article we explain in a simple way what the blockchain is and how it works.

How are cryptocurrencies different from traditional currencies?

Cryptocurrencies are different from the currencies issued by central banks or governments because their value is not subject to what is established by these regulatory entities. Instead, the price of cryptocurrencies depends on the supply and demand of the markets.

Cryptocurrency markets also differ from other investment or currency markets, as crypto-markets do not close. The markets for the purchase and sale of cryptocurrencies are open at any time of the day, 365 days a year.

Now that you know what a cryptocurrency is, and how they differ from traditional currencies, let’s take a look at how you can acquire them safely.

What is the safest way to buy cryptocurrencies?

The options to access the purchase and sale of cryptocurrencies are numerous. However, as in any online activity, it is essential to consider some security aspects to avoid exposing your computers to malware, digital scams (phishing), and hijacking.

Currently, the safest way to buy cryptocurrencies is by using an exchange platform. Why?

It allows you to access markets with liquidity, so you can manage your transactions quickly.
You can benefit from competitive purchase and sale rates.
It allows you to buy cryptocurrencies with debit, credit, and other digital payment alternatives.
You can rely on the legal security of carrying out transactions with registered companies according to the legal framework.

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How to buy Bitcoin online

As Bitcoin is the most traded cryptocurrency in the crypto ecosystem, obtaining them is easy. Here’s what you need to know in case you would like to buy Bitcoin online:

Register on an exchange.
Create a cryptocurrency wallet.
Buy your preferred amount of Bitcoins and store them in your wallet.

Learn what’s the best day of the week to buy crypto!

How to create a cryptocurrency wallet

Creating a cryptocurrency is a simple process on Bitcaribe. Our exchange is designed to provide a simple interface for all types of crypto users. Simply visit our exchange portal, enter your email, create your account, set up your wallet, and start trading in any of the more than 15 crypto assets available on our platform.