What Is Cryptocurrency Trading? – The Latest Investment Craze

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Many people hear the terms bitcoin, Coinbase, cryptocurrency, and mining all used together, and they ask, “What is cryptocurrency trading?” Are you one of those people? I was not too long ago. With a little bit of research and investing, this is my answer to the newbies.

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Cryptocurrency

Another word for online currency, cryptocurrency is a form of money that is online only. You can’t carry it around like cash. No one can hand you a bitcoin. It is mined (created), collected, and spent digitally.

There are well over 1500 different types of digital currency in the world, and more and more are being created and may show up at any time on the digital market.

Bitcoin was the first and remains the most valuable, valued at this particular second – 10:18 pm EST – at $8329.16 per bitcoin. That value will probably change before I’m finished writing this article. Digital currency values ebb and flow at a rapid pace.

All online currencies besides Bitcoin are known as altcoin. Why? Altcoin is short for alternative bitcoin. So, since Bitcoin was first, all others are considered alternatives.

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What Is Cryptocurrency Used For?

It is used just like government-produced currency, but its value is in whatever different entities are willing to accept it for. A surprising number of online business entrepreneurs will accept online currency.

  • PayPal
  • Overstock
  • Expedia
  • Subway
  • Shopify
  • Microsoft
  • Pizzaforcoins

There are others. The next time someone tries to tell you cryptocurrency is a scam, just think how difficult it is to pull a scam on so many companies, especially PayPal!

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How Do People Get Digital Currency?

The first way is mining, which is how the currency is created. Don’t worry about that for now. Cryptocurrency is its own little world of economics.

Trading is the primary means of acquisition. Applications/programs like Coinbase and Crypto Pro, among others, will connect your account with them to the bank account of your choice. Buy digital coinage with real USD or your country’s government produced currency.

With these apps, you can also trade what you have invested in one currency to another currency and back to cash. Fees vary. Your currencies are stored in a digital wallet. Make sure you have an excellent password!

You can also accept online currency as payment for your services or products. Make sure the transaction goes through a trustworthy source.

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Who Keeps All This Under Control?

That’s like asking who rules the world. There are about as many accurate answers for one as for the other. Who owns the Internet? Who controls international law? Well, let’s look at the main question.

Creators are usually groups of people who use their collective forward-thinking and intellect to design a useful currency that will be acceptable by the masses. The creators begin mining and collaborate a certain amount of miners underneath their authority.

The creating company allows a certain number of miners to create a set amount of the new currency per hour. This is monitored very closely so there is never too much or too little. As with government monies, a lot of calculating is involved and mistakes are made.

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The Beginning Of It All

The story is fascinating and better understood in a longer article or even book. This is the short-short version.

The first recognized cryptocurrency, bitcoin, was created in 2009 by Satoshi Nakamoto, a pseudonym. It was the first publicly used means of exchange combining decentralized control, user anonymity, and built-in scarcity.

Nontaxable, you can understand why governments began to swiftly crack down on it. How dare citizens trade something for products and services that can’t be taxed! The audacity! Lawsuits were treating crypto like valid currency and people were going to prison for theft, enabling drug sales, etc.

Thankfully, things have smoothed out, and reputable trading programs make sure your wallets are legal. Still, governments do not like it; new laws are always being discussed about how to take control of digital money.

From the beginning until now there are those who insist that cryptocurrency is a big scam, a Ponzi scheme, a way to get in trouble, etc. Balderdash. With names like PayPal and Microsoft using crypto, all you have to do is keep informed as to which currencies are destined to flourish and which are destined to flounder.

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Baby Steps

Diving in with thousands of dollars could prove disastrous for beginners unless you have a guiding hand helping you follow the fluctuating market. I recommend starting out small and watching the graphs to see how the market is going.

Bitcoin is the safest route, but not always the most prudent. Once upon a time, it was very cheap, then it hiked up to $11,000, and it continues to go up and down.

As of this writing, the market is pretty down, but that’s actually the best time to buy. Like other types of investors say, “Buy low, sell high”.

My personal wallet is with Coinbase, and my favorite cryptocurrency is Litecoin. I also mine Pi, an up and coming currency for which I have high hopes.

If you’d like $10.00 in free Bitcoin, use my link here to get a free Coinbase account.

The free $10 is yours after investing $100. The app doesn’t forget! You will get that free coin!

Thank you for reading! Drop a question or opinion in the comments below; we’d love to help you out and discuss your ideas!

32 thoughts on “What Is Cryptocurrency Trading? – The Latest Investment Craze”

  1. Cryptocurrency is the future. I hope this article helps many people realize the path of currency. Change happens to everything. This is the transition from on extreme to another. A private exchange process. I’m buying by BTC before it makes it’s way as the U.S. and hopefully the global standard as our currency.

  2. Very interesting post!
    I have always been interested in what cryptocurrency is and how it came to be.
    I learned so much from this post and you explained it really well.
    Cryptocurrency certainly seems like the future and it will be fascinating to see how this currency becomes more common place.
    Thanks for all the helpful information!

  3. Thank you for this very good article about cryptocurrency. At last someone explained it well in easy and clear way.

    I’m a little disappointed with myself that I missed it when the BitCoin was much cheaper in the past. But, I think Bitcoin and cryptocurrencies are still the future. What do you think?

    1. I agree with you, Kristof. We heard of it when it was sort of a fluke, then smacked ourselves for not investing! I’m mining Pi right now and making piddly investments here and there. When PayPal is accepting something as currency, it’s definitely worth watching. Thanks for commenting!

  4. I am a guy who invests my money here & there and remains patient for it to grow. Until now, I couldn’t find one such thing with the help of which I could actually learn & invest in cryptocurrency. I remained skeptical for years and kept watching Bitcoins but it was my bad luck that I never invested in it. 

    After reading your article, I am realizing that what I big mistake I have done by not investing in bitcoins. Your ideas are to the point and indeed, it is the future. 

    1. Hi LK and thanks for commenting. I think most of us wish we could have jumped on Bitcoin before it went crazy. It’s been going mostly down now, but it’s still so rare that it’s not likely to plummet. If you want to try mining something for free, go back and look at my article on mining Pi. Best wishes!

  5. Thank you for this great article. If I could go back in time to 2009 I’d get like 1000 bitcoins and then just hold on to it until 2019. Is it possible to mine bitcoins for free? I was reading online that it costs like 4-5000 to mine one bitcoin but is there a way that you can mine it for free? Thanks for your expertise on bitcoin and have a great day. 

    1. It would be awesome if you could mine BTC at all! It requires special software and hardware, which makes it too complicated, in my opinion. If you want to do some free mining, go back and check the other article on my site about mining Pi. Thanks for commenting!

  6. A great post to explain the basics of crypto. I bought my bitcoin at the back end of 2017 just before it rocketed to its peak in Jan 2018. Unfortunately like others I got carried away with the rhetoric and have watched it plummet since then. 

    I agree that baby steps and understanding is the best way to invest. I have a friend who is trading the other crypto currencies and is making a steady profit, but I don’t have the understanding to try and understand the trends especially with something that seems so volatile as crypto currencies. I do however believe that regulation and buy in from the financial institutions will come and with it a significant increase in values, hence the reason I’m hanging onto what so far has been a poor investment for me personally.

    1. Excellent observations and I hope your BTC situation improves soon. There are currencies, like Dai, that do their best to keep their value at as close to $1 as possible, so that’s a safe bet – not an exciting one, but safe. Thanks for commenting!

  7. I heard about Crypto currency being used digitally but I haven’t gotten into details til I read this article. I guess this is just one of the economic and international monetary changes happening globally. Most people in our country aren’t ready for this yet but I believe it will become widely used in 2-3 years. All we need is substantial information about how the system works. How much do you think is worth investing for beginners? What are the basic strategies to make my funds grow? Thanks for sharing what you know. 

    1. Hello! I’m not sure which country you’re in, but I’m sure that cryptocurrency will be getting bigger there, as everywhere else. If you are interested in getting started, I think you should start small. There is currently a downtrend, so this is going to be something you watch slowly. There are people who have made millions, but I can’t afford to invest much. When it comes to strategy, I just keep an eye on the graphs. Ethereum and Litecoin are pretty popular right now. Thanks for the comment!

  8. Great article on cryptocurrency trading, very thorough. I guess its main uses of blockchain will be something else than cryptocurrencies like smart contracts, micropayments, electronic property registers, identity and reputation registries and maybe voting systems. On the other hand, it’s pretty hard to predict what the post-dollar world and post-dollar monastery system will look like. I was mining bitcoins until I (or we) had 32 bitcoins but nowadays Ethereum is only major cryptocurrency I’m still investing. Ethereum has better technology and provides more uses than Bitcoin does. And serves a bigger purpose. Beside Bitcoin has a lower coin supply. We call bitcoin as Ethereum alternative, not opposite but these are opinions.

    1. Awesome response! An acquaintance of mine has a friend that hit over a million on, I think, Ethereum, then lost most of it and withdrew while he still had a substantial profit. I believe all others are called altcoin because Bitcoin was the first. That’s just how I understand it. Thanks for the response!

  9. Hi Cathy, I’ve missed learning about cryptocurrency, so your post is a nice refresher. I see crypto as something exciting and positive. You summarized the basics of crypto very well. I see that it’s here to stay, and I agree that it’s very real, not a scam.

  10. Hello Cathy, reading through this post just makes me realize how much I have missed out when it has to do with investing in cryptocurrency. Investments in our world is getting very diversified lately and now people are going into investing in some other means rather than being shareholders in companies. For me, I see cryptocurrency as a really big way to invest ones money now. I look forward to opening a demo account and see how it goes.

    1. Hi Benson! Thank you for the comment! Some people, like me, are slow to get in on things. Crypto is one of those things I wish I’d gotten into earlier.

  11. Thank you for this great post on crypto currency.

    Crypto currencies have been getting a lot of publicity lately.  At first, I figured it was just a craze.  Then came fears of hacking.  After that it was the flood of “copycat” currencies.  On and on it went.

    For me, Bitcoin was just some geeky thing I played around with at the beginning.  Over time, I lost interest and cashed in, stopping my mining and moving onto something else.  Sadly, that was a poor choice on my part.  Had I held onto the coins, I would be pretty well off now.

    Crypto currencies are here to stay and the fact that big names are now accepting them proves it.  Now I just need to see how I want to play the game; trading, mining, etc.

    Thanks again,

    Scott

    1. Thank you for the comment, Scott. Many people start cashing out when the value goes down, but my son says that is the best time to buy. Kind of like the housing market, I guess. Best wishes as you play the game again. 🙂

  12. I’d like to see if Coinbase is accepting users from the Philippines. We have our own wallet that’s very popular here in my country, but I’d like to try Coinbase knowing you’ll get $10 worth of free Bitcoin upon signing up. I got hooked with cryptocurrency three years ago but lost interest when it tumbled down. I was also victimized by so many crypto scams that I almost totally hate crypto. Now, I am ready to check back again and begin investing in crypto, but this time, I must be careful now.

    1. I don’t know whether Coinbase is in the Philippines. To get that ten in free bitcoin you have to invest $100 in currencies. I don’t think it needs to be immediate, but eventually you’d get it. Now I have to go look the time limit up. Best wishes! Thank you for the comment.

  13. I’ve always been wary of the cryptocurrency craze and avoided it completely. Recently I have had random people following me on Instagram and Facebook saying they are bitcoin millionaires and they could make me rich too!

    It’s that type of hard sell that gives cryptocurrency a bad name and makes people stay away. Having said that a friend of mine recently invested in Litecoin and it was doing well for him. He has been trying to convince me to make a small investment and I am seriously considering it. Would you recommend Litecoin or is there something better to invest in?

    Thanks for this enlightening article

    Tony

    1. You’re right about not trusting anyone who promises instant wealth. Litecoin is pretty much my favorite coin. I believe it’s the second most popular, but I’m not sure. It’s definitely established. I’d give it a go. Thanks for your comment. 🙂

  14. This is the first clear explanation of Crypto Currency I have come across.  The value of 1 Bitcoin is that much? I remember a few month ago there were some suggestions that Crypto was a fake narrative. Others came out to say that they has several bitcoins that they were not ready to let go yet. Seeing these big corporations dealing in Crypto for me  proves that it is a genuine ‘thing’. You have answered the question I have been wanting to know. Thank you for this clear explanation.

  15. Hi. Thank you for this introduction into the world of cryptocurrencies. I appreciate that you have explain things in a way that is very easy to understand. I have been looking for a good wallet to get started with cryptocurrencies and I think your suggestion of Coinbase is a good answer to my search. Besides we can start with $10 USD in value going through your link.

    1. I believe the $10 is for someone who has already invested enough that the app knows you’re serious, but it does come if you join through my link! Best wishes in all your endeavors. Thanks for stopping by!

  16. Good information. Thanks for sharing. I, like everyone else, wish I had invested in Bitcoin when it first came out. But I didn’t! It’s never too late to start, so I’ll look into some of the alternative currencies that you suggest to see if any of them inspire me to invest.
    A concern I have with cryptocurrencies is: What if there is a problem with the power grid and all of the computers and cell phone towers shut down? If we have no money in our pocket we will not be able to purchase anything! What are your thoughts about this?
    Cheers.

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