Cryptocurrency - What is it?

#1 Cryptocurrency- What is it? Cryptocurrency is a digital or virtual currency based on blockchain technology. Bitcoin is the first and oldest cryptocurrency launched in 2009, by Satoshi Nakamoto, who has remained a mystery to date.

It is an internet-based form of currency that employs blockchain technology to complete financial transactions. The blockchain technology helps the cryptocurrencies to gain immutability, transparency, and decentralization. Most importantly there is no central authority that controls Bitcoin.

Bitcoins are not in physical form but in balances that are kept on computer systems that every user has access to including the transactions that are verified by computers. Because of its popularity, Bitcoin has resulted in the launch of other digital currencies often referred to as Altcoins.

If you are looking to learn more check What is Bitcoin?, Buy Bitcoin or Top places to buy Bitcoin

Bitcoin (BTC)

  • Bitcoin is the godfather of cryptocurrencies as it is the first virtual currency to be created

  • There are 21 million bitcoins that will ever be mined and more cannot be issued


  • This includes the currently available in the circulation of around 17 million

  • After every 10 minutes, 6.25 new bitcoins are mined and put into circulation


  • Based on bitcoin block halving the last bitcoin will be mined in the year 2140

  • Bitcoin is an open-source code that can be downloaded by anyone

  • It is a decentralized digital currency and there is no central bank that reigns control over Bitcoin

  • Bitcoin is built on distributed network and activities are validated and authenticated through collaboration within the ecosystem

  • Transactions between users occur without the need of third parties

  • Bitcoin mi (computers) verify user transactions

  • The transactions are recorded in a blockchain

  • Bitcoin can be used both as a currency and a commodity

  • Bitcoin ATMs are nowadays available globally with the US alone having around 2,000

  • There are over 23,000 bitcoin wallet address holding more than one million dollars of bitcoin

How The Regular Money System Works

Regular currency is centralized which means governments and central banks control it. The trust vested in the regular money system comes from the currency supply issued by the government or central authority. Therefore when one wants to transact using regular fiat currencies such as EUR or USD they will need a third party like the European Central Bank or government institution as an intermediary to vouch for the worth of the currency.


The intermediaries aid in confirming the transactions when sending/receiving money and managing of funds.

How Does Bitcoin Blockchain Work?

Since cryptocurrencies are decentralized, users don’t need intermediaries when sending or receiving bitcoin. The transactions are confirmed by computers through a process called Bitcoin mining where the computer will confirm a bitcoin transaction. Most importantly no banks are involved and you are your own bank.


All transactions are recorded on a blockchain. Since the element of intermediaries is not there it is faster to transact in bitcoin and the process takes 1 minute to an hour unlike in regular international bank transfers where the process can take 3 to 7 days.

Check TOP 3 best and trusted exchanges to buy and trade with cryptocurrencies. 




  • Huobi process 500 million to 2 billion trades per day

  • The exchange boasts more than 5 million users

  • Trading fees are competitive ranging from 0.4% to 0.1%

  • The exchange supports more than 120 cryptocurrencies

  • It is supported in more than 130 countries 

  • Offers margin trading

  • Stores 98% of the funds of users in cold storage and have hourly monitoring of crypto wallets for more security

  • Binance processes between 10 billion and 12 billion traders every day

  • The exchange has more than 12 million daily users

  • It has one of the lowest trading fees that range from 0.1% to 0.2% for all trades

  • Binance offers support to a wide range to cryptocurrencies which are over 190

  • Binance is supported in more than 180 countries


  • The exchange offers a discount of 50% on fees for traders that trade in Binance coin (BNB)

  • Binance is the most trusted and leading cryptocurrency exchange

  • The exchange processes around 100 million to 300 million trades per day

  • Kraken boasts more than 2.2 million daily users

  • Its trading fees are competitive ranging from 0.42% to 0.1%

  • Offers support for more than 30 cryptocurrencies

  • The exchange is supported in more than 180 countries

  • It supports margin trading​​

  • Holds 100% reserves which are proof that they have the amount they should have and provides transparency to traders




Binance the most trusted crypto

Binance was established in 2017 by former Okex trading platform CTO Changpeng Zhao. Okex is also one of the leading cryptocurrency exchanges. As of the beginning of 2018, Binance had established itself in the crypto space as the largest exchange globally in terms of trust and daily trading volume. The exchange processes between 10-12 billion trades per day and it supports more than 180 different cryptocurrencies. It boasts around 12 million daily active users with 26 million monthly visits from over 180 countries.

The Binance native token (BNB) has experienced significant growth to date growing to $15 from the ICO price of $0.1. Its all-time high is $39.57 and in the process, it brought ICO investors returns of 16000%-39000%.

  • It has the lowest trading fees of 0.1% for all customers and when one traded using BNB token the fees are reduced automatically

  • Binance is the most trustworthy exchange with more than 20 million users

  • There are over 180 cryptocurrencies supported by the exchange

  • The Binance OTC portal accepts large crypto block trades

  • Traders can buy bitcoin through credit/debit card, SEPA transfers with a competitive price

  • Traders can earn staking rewards for over 23 cryptos

  • Most importantly its SAFU funds is an incredible feature where the exchange deposits 10% of trading profits for emergency purposes especially during hacks

  • Binance experienced a major hack in which 40 million worth of crypto was lost. However, it compensated the users 100% of the damage from the SAFU funds

  • Considering it is a fast-growing startup there risks as things do happen

  • Doesn’t support fiat deposits and withdrawals making it difficult for first-time traders

  • Doesn't offer commodities, forex, and stock trading



Huobi Token Has Grown To Over $4

Huobi Global is also another cryptocurrency exchange that is growing fast boasting over 5 million users. Leon Li founded the exchange in 2013 in China. It has since grown to have subsidiaries and affiliate companies in 12 other countries that include Japan, the US, Gibraltar, Thailand, and others with more than 1,300 staff.

In 2014 the exchange raised around $10 million from Sequoia Capital in venture capital investment.

The Huobi native token (HT) has significantly grown to over $4 from its initial coin offering (ICO) price of $1.52.

  • Offers a wide range of more than 235 different cryptocurrencies to pick from

  • They offer a flat trading fee of 0.2% and traders trading in Huobi token get a discount

  • More than  six years’ experience in virtual assets services

  • Processes 2 to 4 billion trades every day

  • Holds more than 420,000 user bitcoins

  • The exchange is supported in more than 130 countries

  • OTC Huobi helps users in converting fiat currency to digital assets

  • Supports buying of bitcoin using a credit/debit card

  • When you use a debit card to purchase bitcoin they charge a fee of 8%

  • Trading fees are high ranging from 0.4% to 0.03%

  • Does not support buying crypto through bank wire

  • Do not offer staking rewards

  • Occasional restrictions on fiat currencies

  • Shortage of currencies for margin trading

  • Complex verification process



Kraken Offers High Trading Volumes

Kraken is also one of the popular crypto exchanges that were registered in San Francisco in 2011. The exchange is among the crypto exchanges that boast a large daily trading volume. Trades on Kraken are held in EUR, CAD, USD, GBP, and Japanese yen. The exchange offers high liquidity levels and trading volumes and most importantly it undertakes Proof of Reserve Audits.

  • Supported in more than 180 countries

  • The exchange supports more than 34 different cryptos

  • Processes 100 to 200 million trades every day

  • Allows staking of Tezos, Bitcoin, Dollar, and EUR

  • Kraken follows high-security protocols

  • It is the most used enterprise solution that allows traders to set up a gateway for selling cryptocurrency through bank wire transfer, credit/debit card

  • Offers margin trading​​

  • Supported in more than 180 countries

  • The exchange supports more than 34 different cryptos

  • Offer high buy limits and liquidity​​

  • Has an iOS application

  • Has a limited number of currencies supported

  • Its interface is complicated

  • Supports only two languages Japanese and English

  • High trading fees of 0.42%-0.1%

  • Doesn’t have a native token of its own

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Cryptocurrency Risks

Cryptocurrencies Susceptible To High Volatility

Cryptocurrencies Are Targeted By Fraudsters

Providers Charge High Fees

Cryptocurrencies tend to experience high volatility and their prices vary greatly. This is because their value is determined by market participants through transactions which implies that when investor confidence becomes low trading activity might collapse and result in an abrupt drop in price. For instance, the price can rise or even drop significantly making the cryptocurrency worthless. Bitcoin price has previously dropped over $1000 per hour.

Since cryptocurrencies are considered a form of currency they are a fraud risk and have attracted fraudsters that are stealing cryptocurrency. Scammers hack crypto exchanges and crypto wallets to steal coins. Therefore it is advisable not to share account access and private keys and if possible use 2-nd authentication like SMS, email, and Google authentication. You can use a second device that is always offline for purposes of keeping Google authentication and passwords.

For new traders, some of the cryptocurrency providers might be charging high fees that are unrealistic. For instance, some sell up to 50% high relative to the average market price. It is therefore important to be keen on such players and always check the fees charged before buying bitcoin.

"Bitcoin is here to change global finance as our current financial system is outdated"
Mardo Soo
  • LinkedIn


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