Types of Cryptocurrencies
Cryptocurrencies come in different forms and values, the first Cryptocurrency and the most successful so far is Bitcoin (BTC).
Bitcoin (BTC) is the primary Cryptocurrencies whereas the rest are referred to as alternative Cryptocurrencies (Altcoins). Basically, after the creation of Bitcoin and the success it recorded, many other entities decided to create alternatives to Bitcoin, each trying to improve on the technology behind Bitcoin in a bid to provide solutions to the problems people currently face from the use of Centralised currencies (Currencies controlled by the government).
Some alternative Cryptocurrencies (Altcoins) have been successful, others have turned out to be scams created by fraudsters to steal people’s money. However, as Cryptocurrencies advanced it has become a lot easier to differentiate scam Cryptocurrencies from legitimate Cryptocurrencies.
Scam Cryptocurrencies offer quick returns on investments, in most situations they are promoted to be the next Bitcoin, deceiving the gullible into believing they will magically increase in value overnight. However, this scam Cryptocurrencies do not solve any real problems, the teams behind them (the creators) are not credible and in most cases use fake names and establishment. We will talk more on that as we proceed with this course.
Legitimate alternative Cryptocurrencies like Ethereum, Cardano etc… on the other hand are backed by solid technologies, the teams who created them are credible and well known, they have huge transaction volumes (we will talk about transaction volumes in the next page). Furthermore, they are listed in top exchanges and have good market capitalizations (we will talk about exchanges and market caps shortly).
Having known the types of Cryptocurrencies and their basic differences, let’s proceed to talk about how to buy them.
How To Buy Cryptocurrencies
Cryptocurrencies are sold in exchanges. To buy them, you will first of all need to have a wallet to store them, the same way you have a bank account to store your paper money.
Every Cryptocurrency has its own wallet, you cannot store Bitcoin for instance in an Ethereum wallet, neither can you store Ethereum in a Bitcoin wallet.
To create a wallet and Buy Cryptocurrencies you will need to create an account in an exchange. Most exchanges provide wallets to store your cryptocurrencies (we will talk more about wallets in the later parts of this tutorial)
What is an Exchange
An exchange is a platform where people buy, sell and exchange Cryptocurrencies. Exchange cryptocurrencies in the sense that you can give someone Bitcoin in exchange for his/her Ethereum.
There are basically 2 types of exchanges.
- Peer to Peer exchanges (P2P)
- OTC – Over the Counter Exchanges
A peer to peer exchange is a platform where people go to buy Cryptocurrencies from other people at rates in which they are pleased with. The peer to peer (P2P) exchange serves as an intermediary to make sure that no one gets scammed. An example of a peer to peer exchange is Remitano
Over the counter (OTC) exchanges on the other hand, are platforms that sell Cryptocurrencies to people at fixed prices. They are like Banks where you go with your local currency to buy foreign currencies at the bank’s rates and not yours. An example of an OTC exchange is Blockvilla
And finally, they are exchanges like Binance, Kucoin, Coinbase etc… that offer both P2P and OTC features, here you can chose to either buy from the exchange instantly or place an order to buy from its peer to peer section.
All credible exchanges offer wallets to all Cryptocurrencies they sell once you create an account with them. We will talk about the buying and selling process in the next Page with video illustrations.
Next: We Will Be Talking About How To Make a Minimum Of $20 to $2,000 weekly Buying And Selling Cryptocurrencies (Twice Every Week).