A cryptocurrency (or “crypto”) is a digital currency which uses an online ledger with strong cryptography for secure online transactions. It can be used to buy goods and services online.
Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.
What are the types of cryptocurrency?
There are a number of cryptocurrencies that has emerged over the past few years, and the most popular is the Bitcoin. Bitcoin’s value started trading at US$0.0008 in 2010. It had its ups and downs, as it is highly volatile, but as of writing, 1 Bitcoin is now worth US$48,878.50.
Here are the other types of cryptocurrency, their value when it initially became available, and their value now.
| CRYPTOCURRENCY | STARTED TRADING | VALUE THEN (US $) | VALUE NOW (US $) |
| Bitcoin (BTC) | 2010 | 0.0008 | 48,878.50 |
| Ethereum (ETH) | 2015 | 1 | 1,569.98 |
| Ripple (XRP) | 2012 | 0.014 | 0.445 |
| Bitcoin Cash (BCH) | 2017 | 240 | 538.90 |
As you can see in the chart, the trade value of these cryptocurrencies skyrocketed since they started trading.
If you would have invested US $100 in Ethereum in 2015, you would now have US $ 156,698. That is a big WHAT IF!
You may think that you might have missed the chance, but you can still try your luck in trading cryptocurrencies, because they still keep on going up in value. Beware though, because trading cryptocurrencies are highly volatile. One moment they could be worth $1,000, then you blink, and all of a sudden, they could be worth $100.
Why should you open a cryptocurrency wallet?
A cryptocurrency wallet is a place where you can store your cryptocurrencies, and this wallet validates your transactions when you’re using your cryptocurrencies. This is where your secret information is stored – called a private key or a seed, which is used to validate transactions and “sign” them so that your cryptocurrency can be used for purchases or when you exchange it with other assets, like regular currency or other cryptocurrencies.
Before you are able to trade cryptocurrencies, you should first open a cryptocurrency wallet, where your cryptocurrencies will be stored. You would need a different wallet for each type of cryptocurrency.
How can you open a cryptocurrency wallet?
Step 1. Go to Blockchain.com
Click “Create Your Wallet”
Step 2. Register for an Account
Type in your Email Address, Password, and agree to their Terms of Services. Then click “Create Wallet”.
Step 3. Verify your Email Address
Check your Email, and click “Yes, This Is My Email” button on the verification email they sent you.
Step 4. Set up your Blockchain Account.
Once your Email Address has been verified, you can now proceed to setting up your Blockchain account.
Step 5. Add your Payment Details
On the top right hand side of the screen, click on the gear icon, and click on “General”.
On the Linked Cards Section, click on “Add Card”.
Type in your Card Details.
Step 6. You can now start trading!
The currencies on the left hand side of your dashboard are your wallets. You can add and transfer funds to and from these wallets.
