In the past decade or so, cryptocurrencies have managed to become extremely popular as they are now used by more than 7 million people. The main reason why people are so fond of investing in them is that they are extremely profitable. After all, studies have shown that there may be as many as 100,000 crypto millionaires.
There’s no denying the fact that many consider cryptocurrencies to be a part of our future. But what exactly is a cryptocurrency? That is the topic that we are going to discuss in this article. We’ll help you learn the basics and get familiar with everything that they have to offer.
What is Cryptocurrency?
A cryptocurrency is a digital currency used for trading and making purchases online. Considering the fact that it only operates on the Internet, it does not have a physical form. The first cryptocurrency to be invented was Bitcoin. Satoshi Nakamoto established Bitcoin back in 2008 and thanks to the massive success that Bitcoin had, cryptocurrencies started appearing out of thin air.
Thanks to that fact, there are almost 2,000 cryptocurrencies on the market today, with some of them being extremely valuable and thus, well-accepted by the public.
Where Do You Trade Them
As mentioned earlier, the main reason why people want to invest in cryptocurrencies is that they are profitable. But, the question here is, where do you trade them?
The world’s best marketplace where you can trade cryptocurrencies are trading sites. Reputable platforms such as BitQT will connect you with thousands of buyers or sellers from all around the world. The one thing that you need to do to gain access to their services, is register. Thanks to the fact that the process of registration is simple, traders of all ages and skills will be able to fill the online application form with ease.
Can You Use Them As Payment Methods?
When it comes to using cryptocurrencies as a payment method, the choice is a bit limited. That is because even though there are many companies that accept crypto payments, most of the companies only deal with Bitcoin.
The good thing is that the list of companies that accept Bitcoin is packed with global brands. The likes of Expedia, Starbucks, Overstock, Shopify, Subway, and Whole Foods all accept payments with cryptocurrencies. Recently, even Tesla invested over $1.5 billion in Bitcoin, but they stated that as of now, they will not accept Bitcoin payments.
Which Cryptocurrencies Are The Most Dominant?
Earlier in this article, we stated that there are around 2,000 cryptocurrencies on the market, but only a handful of them are worth investing in. The top three most dominant cryptocurrencies are Bitcoin, Ethereum, and Tether. Here’s why.
Bitcoin and Ethereum are so dominant because they are the most valuable cryptocurrencies on the market. Bitcoin’s value fluctuates between $30,000 and $40,000, while Ethereum is valued at around $2,000. On the other hand, Tether has a value of $1, but its biggest pro is that this is a stablecoin.
While Bitcoin and Ethereum are subject to changes thanks to their high volatility rate, Tether is very stable and reliable as its value always remains the same.
Their Legal Status
Cryptocurrencies fall in the laws’ grey area. Yes, there are some countries like China and Russia, which have completely declared them illegal, but in most parts of the world, cryptocurrencies are not regulated. That is why people can trade with them without facing penalties or any other repercussions.
Not only that, but El Salvador recently managed to write history as it became the first country in the world to legalize Bitcoin. The president stated that this move will make it easier for Salvadorans who live abroad to send money to their friends and families.