What are cryptocoins?
Cryptocoins have been around us for approximately nine years now, and they keep surprising the market, for better or worse. Bitcoin, probably the most famous and valuable of all “cryptos” is worth $9,000 dlls (at the time this article was written) per coin, creating a cryptocoin fever that’s gotten into millions of people around the world, growing at an accelerated pace.
So fast has been its growth, that most people still don’t know or understand the basics of a cryptocoin, even though headlines and commentary about them are beginning to dominate your social media feeds or local news, so here is a brief description that might help you learn more about this thing.
What is a cryptocoin?
It is an electronic and digital currency that is based on the same principles of cryptography, which means that is anonymous and difficult to hack or modify. Almost impossible. Crypto currencies getting more and more common, especially now that we live in a world where nobody wants to be followed or surveilled online thanks to every transaction they make. Not against their will at least. People want freedom with their money.
So cryptocoins are currency that basically are given value based on what most of the people buying the currency think it’s valued.
They are borderless. The advantages of being a purely electronic and internet based currency are, in part, that there are no borders. You can convert any cryptocoin into a local currency of your choice, internationally in any country that simply has internet access.
The coins belong to you and nobody else, no one can steal them, much less intervene.
There’s no intermediaries, all transactions are carried out from person to person, there is no mediator. No banks = goodbye to high commissions.
It’s faster, banks are slow and they validate transfers in several minutes, hours and even days. This does not happen with cryptocoins due to a blockchain, a network that is available 24 hours a day, 365 days a year.
How to get one?
You can buy cryptocoins through several platforms, some of the most famous are Coinbase, Kucoin, Bitterex and Bitso, the latter is based in Mexico. And there are even some ATM machines for cryptocoins (mostly Bitcoin) in several cities around the world, and turn your cryptocoin into traditional currency.
Each of these currency exchange platforms has its own requirements to fund money, such as paying a minimum quantity of 100 dollars (for example); but if you happen to live in Mexico, you can start from 100 pesos in Bitso, the only drawback is that the variety of cryptocurrencies is very limited. Options are: Bitcoin, Ethereum, Ripple and LiteCoin. Each one has a purchase price that is changing, as does the dollar.
How many cryptocurrencies are there?
There are currently 1,400 cryptocurrencies in the world, growing each day, but the five main ones are Bitcoin, Ethereum, Ripple, Bitcoin Cash,and LiteCoin, each of which has different functions, for example, to be used as simple currency, smart contracts, international remittances without commissions, and more.
More and more cryptocurrencies are being created, but in order to reach the major leagues, it is necessary to go through a token, which is created every time a cryptocurrency project is in the process of being formed, but that still needs support from the investors to solidify it’s support as a coin. This is why it is important to read the token’s roadmap and invest in something profitable and real.
Example of a upcoming project is TriForce Token, which is designed for one of the biggest industries: gaming. The project aims to gather video games enthusiasts and their wealth in a single place regardless of the game, study, developer or platform.
This is how a cryptocurrency is born, a process like any other that requires an investment. A story that made a single Bitcoin go from $.80 to $11,000 dlls in value.
Could this be a new beginning for the financial sector?