The last few years have seen a new form of currency emerge: cryptocurrency. Bitcoin is the first and most well-known cryptocurrency, but there are many more, such as Ethereum and Ripple. Cryptocurrency is a digital or virtual currency that uses cryptography for security and can be sent securely from one person to another over the internet. Cryptocurrency has experienced rapid growth in recent years; at the beginning of 2017, one bitcoin was worth around $1,000. Today (December 12), it’s over $16,000!
This article will show you how to buy, store and sell your collectible coins with confidence. You’ll learn what a cryptocurrency coin is and why it may be valuable, how to buy cryptocurrencies on an exchange, how to store them safely and securely at home or in a digital wallet, and different ways to sell your coins for fiat money if you wish to do so.
Introduction to Cryptocurrency
What is cryptocurrency?
A cryptocurrency is a digital or virtual currency that uses cryptography for security and can be sent securely from one person to another over the internet.
The most famous example of this is Bitcoin, which first came into use in 2009.
There are now over 700 cryptocurrencies and each one has slightly different functionality and nuances on how they operate. One of the main differences between coins is if they’re on a blockchain or not; coins like Ethereum run on blockchains, while some coins like NEM don’t. Some coins like Ripple exist as both a coin and as a platform (known as XRP), with XRP tokens functioning as both the aforementioned platform’s currency and an investment vehicle.
Cryptocurrencies are created by mining—a process where new transactions are added to the existing record of past transactions.
Mining requires computer processing power, but it also rewards miners with new pieces of the currency they mine—this is why people have begun using powerful computers known as rigs to mine their own cryptocurrencies.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security.
It can be sent securely from one person to another over the internet.
Cryptocurrencies are maintained by a distributed network of computers, rather than a central bank.
Transactions made with cryptocurrency are verified and stored on the blockchain.
(a shared public ledger that records cryptocurrency transactions), which prevents them from being altered once they’re completed.
When someone makes a purchase with cryptocurrency, it’s recorded as an entry on the blockchain and the seller receives one cryptocurrency unit.
As more people buy and sell cryptocurrencies, their values fluctuate based on supply and demand.
The first and most well-known cryptocurrency is Bitcoin (BTC). Other popular cryptocurrencies include Ethereum (ETH), Ripple (XRP), and Litecoin (LTC).
Why might certain coins be valuable?
Cryptocurrencies can be valuable for a number of reasons.
Some may represent a company or organization that has issued the coins, while others are designed to have their own set of features that offer users different service levels or payout options.
The value of any coin is dependent on its utility – what it’s being used for.
If it’s being used as a way to pay for goods and services, then it will have value because people are using it as an exchange of goods.
If there are no goods or services being exchanged with the coin, then its value will decrease over time.
For example, Bitcoins are only worth something because people are using them to buy other things, so they can be exchanged one-to-one with fiat money like US dollars.
Ether coins are valuable because they’re required in order to use the Ethereum network service, which allows you to move globally decentralized applications (Dapps) through the blockchain.
Ripple coins also have value because they’re accepted by many major financial institutions as a form of payment for transactions.
How do you buy cryptocurrency coins?
In order to buy a cryptocurrency coin, you’ll need to use an exchange to convert your fiat currency (dollars, euros, pounds…) into a cryptocurrency that can be traded online.
You’ll then be able to put it in a digital wallet and send it to anyone who will accept it as payment.
The coins are stored either on your device or in the cloud.
There are many ways you can purchase coins:
1- You can buy them at market value using an online trading platform like Coinbase
2- You can mine for them using special software
3- You can get paid in them through freelancing sites like Upwork or Fiverr
4- You could receive them as income from mining pools
5- You could get tipped with them by friends on social media sites like Facebook or Twitter
How do you store cryptocurrency coins safely and securely?
When you buy cryptocurrency, the coins are stored in a digital wallet. This wallet has an address that looks like this:
The first part of the address is called your public key, which everyone can see.
The second part is your private key, which only you will know. The two are connected mathematically and must be used together to protect your currency.
You must keep your private key secure because, without it, you won’t be able to access or sell your cryptocurrency. You can store it on a USB or external hard drive offline if you want to ensure security.
If you’re using a computer connected to the internet – even if it’s just downloading emails – make sure your anti-virus software is up-to-date and that your operating system is fully patched and up-to-date with security updates.
You can also use a paper wallet for storage if desired, which involves writing down all of the information for accessing and sending funds from that wallet on paper.
How do you sell your cryptocurrencies for fiat currency (regular money)?
If you decide to sell your cryptocurrencies, how you do so will depend on the type of cryptocurrency.
Bitcoin is the easiest cryptocurrency to trade because it’s the most well-known and there are many exchanges that allow you to buy and sell bitcoins with other cryptocurrencies or standard currencies like US dollars. The largest bitcoin exchange in the world is Coinbase (although there are others such as Kraken). You can find out more about how to use it here: How do I make a purchase?
Other types of cryptocurrencies may be harder to sell. If you have a newer, lesser-known cryptocurrency like Ethereum, you’ll want to make sure that your chosen market offers trading in Ethereum before buying any.
You can check this list for exchanges that offer trading in Ether: List of Exchanges, Markets & Merchants That Accept Bitcoin [Updated January 20, 2018].
Conclusion
In this article, we’ll show you how to buy, store and sell your collectible coins with confidence. You’ll learn what a cryptocurrency coin is and why it may be valuable, how to buy cryptocurrencies on an exchange, how to store them safely and securely at home or in a digital wallet, and different ways to sell your coins for fiat money if you wish to do so.
Here are some of the main topics that were covered.
– What is a cryptocurrency?
– Why are they valuable?
– How do I purchase cryptocurrencies?
– How can I store my coins securely?
– What are different ways I can sell my coins for fiat money if I no longer want them?
