The cryptocurrency have been one of the main investment trends in 2017 and it looks like it will remain so in 2018. After the year of the explosion of bitcoin as an investment this exercise there are other ways to enter the world of virtual currencies at a price more affordable and with potential.
What are cryptocurrencies?
The most widespread definition of virtual currency is that it is a digital currency, not physical, that uses cryptography to secure and manage transactions, as well as to create new currencies.
This explanation of what is a cryptocurrency includes the two most important characteristics of these electronic coins. The first is that it does not have a physical support. That is, there are no bills or coins as there are euros, dollars or pounds . The cryptocurrencies are virtual and although they can be stored in physical devices (purses such as hard drives or USB drives) they have no physical representation. Alternatively you can use Bitcoin Cash ABC Wallet.
The second is that cryptography is used to create new units, which for practical purposes implies that it does not depend on any government or country. With virtual currencies there is no central government or agency in charge of creating new currencies and putting more money in the market. As an example, Bitcoin uses blockchain technology to regulate the creation of new units . In addition, in this case, the number of available currencies is limited, something that is not always repeated with other cryptocurrencies.
Types of cryptocurrencies
Dash, Ethereum, Ripple, Litecoin … there are many virtual coins beyond the famous bitcoin. In fact, today the number of virtual currencies far exceeds 1,300 worldwide.
What differentiates cryptocurrency types is the technology they use on the one hand and their philosophy on the other. To understand it better, most virtual currencies use blockchain technology but with certain changes that can make them faster in processing transactions, for example. In addition, there are also currencies that use totally different formulas. To this the philosophical part is added as to put a finite number to the coins that will be in circulation (bitcoin) or not to do it , as well as the degree of transparency in transactions.
List of cryptocurrencies
How many cryptocurrencies are there? More than 1,300 and going up. Every week, a new virtual currency is created in a process called ICO, which we will summarize later. Alternatively you can use Bitcoin Cash ABC Wallet.
The world of virtual currencies never stops and almost every day there are new proposals, known as altcoins or alternative coins, in reference to the fact that these are alternatives to bitcoins . In the previous point we have reviewed some of the most important and now we will see how to invest in new virtual currencies.
As there are exits to the stock market of companies, cryptocurrency also have their long-term. These are the so-called ICO or Initial Coin Offering and the stock market investor will remind the IPO or Initial Public Offering that collect the exits to the market and are called OPV in Spanish.
ICOs are used to finance business projects and culminate with the birth of new virtual currencies. With the ICO, the company puts new virtual currencies into circulation in exchange for money. One example is the new project of the Tutellus training platform , which has launched its ICO integrating blockchain technology into its business model.
In what cryptocurrency to invest?
Winning coins with cryptocurrencies is possible, but you have to know which one to bet on and how to bet. In this sense there are different ways of investing in cryptocurrency from trading with cryptocurrencies to mining virtual currencies. Choosing the asset and the form of exploitation is key, especially when they are so volatile and have so much risk.