Obtaining cryptocurrencies
Obtaining cryptocurrencies is different from obtaining physical currency. Instead of getting shares or physical money, you get the digital coins instead. The most common and safest way is through exchange sites. You just need to choose a reputable site, register and purchase the coins you want by uploading money into your Cryptocurrency wallet account.
There are both hardware and software wallets. The most popular software wallet is blockchain. All Cryptocurrency coins have their own wallets. There are, however, bigger Cryptocurrency wallets that can hold all the different coins. These ones are suitable if you just want to try out the different coins that are out there or to make small purchases and investments. To maximize the security of your wallet, use a clever, hard to crack password. Every wallet comes with a specific wallet address.
You can also buy these coins from friends, trustable online sellers and family if they have any. They will send the coins to your wallet account at the agreed upon price. From there, you can start using the coins to save and invest.
Bitcoin
Bitcoin currency was first introduced by Satoshi Nakamoto in 2008. His goal was to simplify online transactions. From just a budding, seemingly overambitious idea, bitcoin has grown to be a household name. Everyone is trying to invest in it. Bitcoin is the oldest, most successful Cryptocurrency. It has been classified as a ‘third’ currency type. Bitcoin mining is done using hardware called Application-specific Integrated Circuit. (ASIC). This hardware keeps improving over time. If you are using hardware that is faster and more advanced, you get more tries per second. You, therefore, have a better chance of winning bitcoin. Block rewards are, therefore, earned in the process. The block reward changes over time. When it was first started in 2009, it was 50.
Ethereum
Ethereum is the second most popular Cryptocurrency. You can transfer it between accounts. Ethereum has earned itself a lot of hype because it offers plenty of extra features. It is not only a digital currency. It is blockchain-based with plenty of smart aspects. With Ethereum, it is possible to come up with digital tokens which you can use to represent assets or shares. Developers can easily raise funds for their projects. They do not need Kickstarter. Ethereum has a GHOST protocol which gives it a quick block time.
XRP
XRP from Ripple Labs Inc. is a currency exchange network. The Cryptocurrency connects banks and other payment providers. It is fast and simple to use. The Cryptocurrency focuses on providing global services. T connects banks from all over the world but is still usable to individuals. It is so fast that you can transfer money in just ten seconds. It is popular for its stability and low volatility.
Litecoin
Litecoin is an open source software project that facilitates transactions between peers. T is almost similar to bitcoin in technicality. The difference is that it facilitates faster transactions and it uses scrypt algorithm as proof of work. Mining Litecoin takes up more time and money than mining bitcoin.