If you are interested in getting started with cryptocurrency trading, this article is a great guide to help you begin. This guide outlines two of the main cryptocurrencies that you need to know about before you start cryptocurrency trading. The use of the term cryptocurrency has been closely associated with the word blockchain. The technology behind Bitcoin is still in the early stages of development, and it can potentially be incorporated on a mass scale into our day-to-day lives.
In one way or the other, people have been anticipating a time in our lives where we can finally use digital currencies. Hence, the emergence of Bitcoin has presented a unique opportunity for investors because they can buy the cryptocurrencies and expect a higher valuation on the tokens when the price goes up exponentially.
It isn’t too late to get started in trading with cryptocurrency, but getting yourself accustomed to the concept of cryptocurrency and figuring out how you can get started can be a daunting task. This guide will help you figure out how to get started on your journey of buying cryptocurrencies.
So, how can you start making money with cryptocurrency?
You can either invest or trade in cryptocurrency. Don’t get confused; the two terms are very different from each other. Both terms are very popular even among those who may not be directly involved in cryptocurrency trading. You may have even heard it in the traditional investment market.
When you choose to invest, this means that you will buy a cryptocurrency and wait for it to increase in price. Meanwhile, when you trade in cryptocurrency, you will exchange it using online exchanges. Cryptocurrencies have come a long way since Bitcoin’s inception. Although cryptocurrencies have a dark past, it is now increasingly common for people to own their Bitcoin and Ether. Admittedly, cryptocurrencies are still in development stages, but there are already plenty of people who are interested in what the industry has to offer.
Think of it this way: if you are buying a Bitcoin and you expect to sell the Bitcoin when the value rises, you can call yourself an investor. However, if you tend to move from one cryptocurrency to another to hold on to the highest possible value of the cryptocurrency, you are a trader.
So, which cryptocurrency is the best?
This is a difficult question to answer because there are thousands of cryptocurrency options out there. There are thousands of alternative coins that seemingly pop up every day. However, two of the most important cryptocurrencies in the world are Bitcoin and Ethereum. Let’s learn more about these two digital cryptocurrencies.
Bitcoin is a form of digital currency that you can keep in either hot or cold wallets. These are methods used to keep any type of cryptocurrency. There is no physical form of the Bitcoin, which makes it highly unique. With Bitcoin, nobody controls the flow of your digital asset. In fact, no government interference can stop you from using your money. It can be argued that Bitcoin is one of the most innovative cryptocurrencies of the era because it was the first cryptocurrency ever to use the blockchain technology.
There will only ever be 21 million Bitcoin in circulation. Bitcoin is also highly unique as they are highly divisible. This makes it affordable for many people. In the beginning, the creator of Bitcoin created this digital currency because he wanted to have an alternative to current physical money. In fact, the initial reason why Bitcoin was created was to provide value transactions when purchasing something. Unfortunately, Bitcoins were rampantly used for illegal transactions. If you own a Bitcoin, this means that you own something that not many people in the world have. Also, you have control over your assets and no central bank can determine how you will use your money.
Ethereum presents a unique touch to cryptocurrency. It is very similar to Bitcoin, but Ethereum has a platform that allows developers to build decentralized applications. When these developers complete the development of an application on their platform, they can release their project models and create initial coin offerings using Ethereum. Hence, Ethereum doesn’t qualify as a cryptocurrency despite the fact that they do have a native cryptocurrency, which is known as Ether.
However, people still do refer to Ethereum as the cryptocurrency. In short, Ethereum offers a unique platform for developers to create decentralized applications and build what is believed to be the next wave of applications. It is similar to how people use the Internet to create social media websites or applications. The only difference between the Internet and Ethereum is that with Ethereum, the sky is the limit. For Ethereum, they utilize the money received through their platform to invest in their internal cryptocurrency, which is known as Ether. This native cryptocurrency is used to buy business and project models, which are developed on the Ethereum platform.