Welcome to 37coins.com- How to Buy Bitcoin and Other Cryptocurrencies

Welcome to 37coins.com. We are here to help you make the best decisions around cryptocurrencies. This article will take a look at what Bitcoin is, how to buy Bitcoin, and we will explore other types of cryptocurrencies. This site will help you with different guides on buying cryptocurrencies, as well as helping you find the best cryptocurrency brokers.

If you don’t know what cryptocurrency is, it is a digital currency. It’s not something that you can touch or smell, but it is genuine. It’s also usually not issued by a central authority. These currencies were designed to make payments on the internet more accessible, specifically on the dark web. Some cryptocurrencies keep records of transactions made and owners it passes on to, while others, like Bitcoin, do not and are completely anonymous. This makes payments on the internet, safe and secure. 

Apart from a form of payment, cryptocurrencies can also be an excellent investment, with the value of the currencies increasing exponentially. Bitcoin, for instance, has increased in value far more than most other usual investments, making it very appealing and quite popular. This article can tell you a bit more about making investments with cryptocurrency. 

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77%
TOTAL SCORE

100

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70%
TOTAL SCORE

10 Euro on sign up

Binance, a cryptocurrency exchange platform that was founded in 2017 by Changpeng Zhao, an innovator who had previously created high frequency trading software.

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80%
TOTAL SCORE

Low spreads

Kraken is popular due to its low transaction charges, robust security and a wide array of features.

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38%
TOTAL SCORE

200

What is Bitcoin?

Bitcoin is a decentralized cryptocurrency that has quickly become the most popular digitial currency used to make purchases online. Its value has grown immensely since its inception in 2011. The cost of a Bitcoin started at $0.30 and, in the same year, increased to $5.27. It was, however, a volatile form of payment.

This volatility is a significant reason why so many people were sceptical about Bitcoin as an investment option. It also took a knock when various cryptocurrencies became subject to hacks. In 2020, due to the global coronavirus outbreak, more and more people signed up to mine and bought Bitcoin to take advantage of the low prices before it climbs again. 

You can use Bitcoin offline, by using a physical wallet, which is often merely a printout of the private key that holds the information you need to transact with the Bitcoin that you have stored. You can use Bitcoin mining to obtain bitcoins, but if you are not tech-savvy, this can be a complicated process. It is better to make use of the services of a Bitcoin broker. 

 

Other Cryptocurrencies

Besides Bitcoin, there are various other cryptocurrencies in use to make transactions on the web. Most of these are not as well known as Bitcoin but can be just as useful. 

Litecoin

Litecoin was launched in the same year as Bitcoin as an open-source cryptocurrency that is not issued by a central organization. Litecoin transactions are much faster than Bitcoin, and many people agree that makes Litecoin superior. It does not carry the same value as Bitcoin but is also not as volatile. 

Ethereum

Ethereum is a blockchain-based computing distribution platform. When you use Ethereum to mine cryptocurrency nodes, you are rewarded with Ether. This form of cryptocurrency was launched in 2014. Ether’s blockchain time is only 14-15 seconds, which is infinitely faster than Bitcoin.

Ripple

Ripple has its roots in OpenCoin, which was started in 2005. Ripple isn’t a well-known or popular cryptocurrency. A class-action suit was filed against the company in 2018 for creating coins and not keeping records of who it is sold to. After that, not much is known about the cryptocurrency.

Dash

Dash is an altcoin cryptocurrency forked from the Bitcoin protocol. It is open-source, and transactions are untraceable.  

Nano

Nano was only launched in 2015. The company that started it is a non-profit that reserved Nanos to continue development. There is only a limited supply of Nano available, which can increase the value. 

Bitcoin Gold

The main reason for this fork of Bitcoin is to change the proof-of-work algorithm that Bitcoin had been using to mine coins. 

Bitcoin Cash

This fork of Bitcoin was established in 2017 to increase the number of transactions made per second. An analogy that’s been used to explain Bitcoin Cash is that it is like a new version of Microsoft Word. Once you use the latest version, it can no longer open older versions of documents.

Monero

Monero is an untraceable currency that appeals to users seeking privacy with their finances and transactions. It was established in 2014 and also works on a proof-of-work mining principle, like Bitcoin and Bitcoin forks.

Exchanging Cryptocurrency

Cryptocurrency can be exchanged in different ways. You can exchange one type of cryptocurrency for another, for instance, you can trade Bitcoin for Monero and vice versa. Exchanging cryptocurrency is what sets the value of the currency, just like with offline exchange rates of money between countries.

Cryptocurrency must be traded on a cryptocurrency exchange. Once you create an account, you can store the cryptocurrency in your e-wallet. If you want to buy and sell, you must register as a broker. If you move cryptocurrency through an exchange, you will pay a transaction fee, which serves as income for the exchange platform. The income is estimated to be around six figures in a day.

It is safer to trade on a cryptocurrency exchange than to trade with anonymous transactions, even though the exchange may take longer. You can look for exchange sites such as Kraken or Coinbase. You can also convert your cryptocurrency into cash through an exchange.

Cryptocurrencies can be exchanged with the help of a broker if you are not tech-savvy. As stated earlier, cryptocurrencies can be complicated if you are a beginner. 

Blockchain Technology

Cryptocurrency is mined through blockchain technology. A blockchain is a ledger that is decentralized and records the origin of a digital asset such as cryptocurrency. That means that the history of the cryptocurrency can’t be changed or deleted. The technology works on the principle of group-work, where a file isn’t distributed or transferred, but can be accessed by a group, much the same way as Google Docs. One party is not locked out, waiting for another party to finish working on it; it can all be done simultaneously. 

Blockchains work with complicated math problems where a nonce must be found to generate an accepted hash. There are roughly 4 million nonce-hash combinations to be mined for the right one to be found. Once the right one has been found, you will be rewarded with cryptocurrency. It’s extremely difficult to manipulate blockchain technology, making it very safe to use. 

Frequently Asked Questions

1. Are cryptocurrencies safe to use?

Cryptocurrencies are incredibly volatile, which means that it is a high-risk investment. However, when it comes to finances, high-risk usually means high rewards. If you can mine cryptocurrency and trade with it, it’s an extremely profitable investment. Otherwise, you need to buy low and sell high before the currency loses value.

2. Are cryptocurrencies legal?

Cryptocurrencies are a legal method of making transactions if both parties agree to use this form of payment. Many people are skeptical about cryptocurrencies since it’s so often used on the dark web as a form of payment for illegal goods and services. This is just because most cryptocurrencies are untraceable, providing users with complete anonymity.

3. Where do you store cryptocurrencies?

You can store your cryptocurrency in an electronic wallet. You can open an account with an exchange and use the wallet to store your cryptocurrencies.

4. Are cryptocurrencies taxable?

Since cryptocurrencies are seen as property, exchanging it is subject to tax. The rate will change from time to time, depending on the area you live in.