Nowadays, there are few people who have never heard of cryptocurrencies (more commonly known as Crypto), but many of them may not know what they are. Cryptocurrencies were popularized thanks to Bitcoin and its creator: Satoshi Nakamoto. Today, there are several tens of thousands of them.
Crypto is a digital asset, a virtual currency, which is exchanged peer-to-peer (P2P) without a trusted third party like banks. They have no physical medium like coins or banknotes, are not regulated by a central body and are not indexed to the dollar or gold for example. These new electronic currencies use blockchain technology to transfer ownership of the cryptos between their different owners.
These cryptocurrencies are therefore just a series of numbers whose ownership is transferred from one person to another. It is now possible, thanks to cryptos and blockchain to transfer value on the internet!
What is the purpose of using a cryptocurrency? Like any currency, cryptocurrencies allow the purchase of goods and services. Not being under the control of a central authority and escaping any regulation, they have long been the preserve of illegal transactions, but they tend to shed their bad reputation by democratizing and attracting a wider audience. Cryptos are now increasingly used for legal transactions.
Cryptocurrency can be spent like any physical currency. So it can be used to buy clothes and go shopping, as long as the product is on legal sale in the country. The main problem remains to find physical shops that accept the crypto currency.
But this is not a big deal, because the real use of crypto currency is to invest it in the stock market in order to make it grow. Exactly in the same way that one buys shares of companies that are popular to invest them in the stock market. This is called cryptocurrency trading.
To obtain cryptocurrency, you have to go through what is called an Exchange. It is nothing more nor less than a platform for the exchange of cryptos. On these platforms, it is possible to buy and sell cryptocurrencies, but it is also possible to transfer these cryptos to a third party or to a merchant site (to make a purchase).
You can find on our site, complete user guides for Binance and Coinbase. We detail all the steps, from the creation of the account, to the purchase of cryptocurrencies.