Cryptocurrency: A Complete Guide for Novices

Cryptocurrency A Complete Guide for Novices

Nowadays, modern consumers can choose between various payment methods to pay for goods or services. Thanks to modern technology, from the likes of PayPal, fiat money, and cheques, how today’s shoppers make transactions are constantly evolving. Recently, the past several years have seen the rise of cryptocurrency as an alternate way of buying goods and services, with as many as one in ten people currently investing in cryptocurrency

As well as providing individuals with an alternative payment method, cryptocurrency also offers its users an attractive investment opportunity. Since there are now more than twelve thousand digital currencies worldwide, users can choose which to invest, sell, hold, or trade in for a profit that can be an incredibly lucrative investment for some. 

However, due to the volatile nature of cryptocurrencies, many individuals are left wondering if they should invest in cryptocurrencies if doing so is safe, and how they even work. This article discusses what cryptocurrencies are, how many cryptocurrencies there are, which coins are the most popular, and where to buy Bitcoin and other cryptocurrencies – continue reading to learn more. 

Cryptocurrency A Complete Guide for Novices

What Are Cryptocurrencies?

What Are Cryptocurrencies?

A cryptocurrency is a digitalized form of payment secured by cryptography, making it impossible for it to be counterfeited or double-spent. Otherwise known as crypto-currency, crypto, or coin, cryptocurrencies work as a medium of exchange through computer networks rather than a centralized authority such as the government or bank to maintain or uphold it. 

Cryptocurrency operates on a distributed ledger called blockchain, a record of all transactions updated and held by those who invest in crypto. Digital coins are created through a process called ‘mining’ which involves computing systems equipped with specialized chips competing to solve complex mathematical puzzles to generate coins. 

Our awareness of cryptocurrencies first appeared in 2009, when Satoshi Nakamoto created the first-ever cryptocurrency, Bitcoin. From this point in time, crypto has grown in leaps and bounds, with more than twelve thousand cryptocurrencies such as Tether, Dogecoin, Ethereum, Solana, and Cardano in existence today.  

Where Can You Buy Cryptocurrencies? 

If you’ve made it this far, you might be wondering where to buy Bitcoin or other cryptocurrencies? For those interested in investing, you can purchase a range of digital currencies from a broker or exchange, which have experienced an influx in popularity thanks to the rapidly growing nature of crypto. 

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Nowadays, there are various ways to purchase Bitcoin and other cryptocurrencies online and in-person, although the former is generally the preferred method as transactions are quicker and typically instantaneous. To buy online, investors generally need to create an account with their intended broker or exchange platform, transfer fiat money into their newly created account and place an order. 

Find where to buy Bitcoin and other cryptocurrencies such as Tether and Ethereum using leading peer-to-peer marketplaces like Paxful. As well as providing investors with a safe environment to process transactions, their website is full of helpful crypto-related resources aimed at seasoned and amateur investors alike. For more information about their peer-to-peer marketplace or where to buy Bitcoin, head over to their website or consider contacting them directly for specific enquires. 

How Many Cryptocurrencies Are In Existence? 

The exact number of cryptocurrencies worldwide differs between websites because all digital currencies aren’t active or valuable, otherwise known as dead cryptocurrencies. As of March 2022, there is an upward of eighteen thousand cryptocurrencies in existence, which vary in value and popularity.

The worth of a cryptocurrency is determined by its market capitalization, otherwise known as how many coins are being circulated. For instance, Bitcoin’s market capitalization as of this writing sits at $38,447 billion, making it one of the most popular cryptocurrencies on the market. In contrast, the market capitalization of the second-highest-ranking cryptocurrency Ethereum rests at around $341,703. 

Which Cryptocurrencies Are The Most Popular? 

Nowadays, there are thousands of different cryptocurrencies for investors to choose from, some with very little value or unclear potential. Generally, most financial advisors recommend that amateur investors start by investing in Bitcoin, Tether, or Ethereum. These are considered the ‘safest’ options due to their popularity and size instead of less-established digital currencies. 

Due to the volatile nature of digital currencies, their market capitalization fluctuates daily, so the cryptocurrency that may have been number one last week could be further down the list this week. To give you a rough idea, as of this writing, the most popular cryptocurrencies are as follows: 

  • Bitcoin 
  • Ethereum 
  • Tether 
  • XRP
  • Terra
  • Solana 
  • USD Coin 
  • Cardano 
  • Avalanche 
  • Stellar 
  • Dogecoin 

To get a more accurate depiction of the cryptocurrencies based on their popularity, it’s best to bookmark a crypto-related news outlet, which keeps a detailed list of the most popular cryptocurrencies currently being bought and sold. It’s best to find outlets that list the digital currencies by their most known name to avoid confusion, plus cryptocurrency assets and networks. 

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