Cryptocurrencies, such as Bitcoin, are digital currencies that are not supported by actual assets or tangible securities. They are traded directly between consenting participants, with no intermediaries, and are tracked on digital ledgers.
How do you buy cryptocurrency?
Any investor can buy cryptocurrencies using prominent exchanges like Coinbase, apps like Cash App, or brokers. Another popular way to invest in cryptocurrencies is through financial derivatives like CME’s Bitcoin futures, as well as other instruments like Bitcoin trusts and Bitcoin ETFs.
What is Bitcoin?
Bitcoin is the most well-known digital money, founded in January 2009 by the mysterious and unknown Satoshi Nakamoto, who presented the concept in a white paper. Bitcoin and other cryptocurrencies are said to have lower transaction fees than traditional online payment systems, and unlike traditional government-issued currencies, they are controlled by a decentralized authority.
What is Ethereum?
Ethereum is a blockchain-based cryptocurrency platform best known for its digital currency, Ether, or ETH. According to CoinMarketCap data, Ethereum is the second most valuable cryptocurrency behind Bitcoin. While the maximum number of bitcoins in circulation is limited to 21 million, the quantity of Ether that can be created is limitless, which is one of the most important factors for investors to understand.
How Do I Buy Ethereum?
One of the first stages in purchasing cryptocurrencies like Ethereum or Bitcoin is to find a platform for trading the digital currency. Some of the top platforms for buying and selling Ethereum are Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex. Many Fortune 500 firms also support ether, which has piqued the interest of investors.
What is an initial coin offering?
Investors wishing to add new cryptocurrencies to their portfolios frequently look for an initial coin offering (ICO), which is the cryptocurrency equivalent of an initial public offering. An ICO, like an IPO, allows a firm to raise funding by creating a new coin or service. Investors, in turn, can purchase the initial coin offering to own the new token, but they should be wary of potential fraud in the industry, which is supervised by the SEC for abuse.