With the price of Bitcoin and other cryptocurrencies reaching all-time-highs, more and more people are starting to take an interest. But before you buy Bitcoin and other altcoins, keep in mind that cryptocurrencies are highly volatile and carry a great amount of risk.
Related: What is Cryptocurrency?
It helps to first understand the different types of cryptocurrency. Here’s a brief overview of 3 of the most popular types of cryptocurrency:
BITCOIN (BTC)
Bitcoin is arguably the most popular cryptocurrency in the world. It was created in 2009 by the pseudonymous Satoshi Nakamoto. Despite the anonymous identity of its creator, bitcoin’s promise of operating under a decentralized system and having lower transaction fees compared to traditional online payments made many people take an interest.
Related: What is Bitcoin?
Bitcoin transactions are publicly accessible through a digital ledger. These transactions are verified by computers or nodes that all run Bitcoin’s code. While it can be used as a payment network and store of value, this cryptocurrency is not backed by or controlled by any government or bank. Unlike fiat, Bitcoin’s value is determined by supply and demand as there will only ever be 21 million Bitcoins made.
ETHER (ETH)
This 2014 crowdfunded cryptocurrency may seem similar to Bitcoin, but there is a key difference between the two cryptocurrencies. Ethereum, a cryptocurrency proposed by programmer Vitalik Buterin in 2013, was made specifically as a platform to facilitate decentralized applications and smart contracts. While it is still powered by an internal “currency” (ETH), it’s not just a peer-to-peer payment network and store of value like Bitcoin is.
Since Ethereum allows you to facilitate smart contracts, this means you can exchange money, property, and other valuables, track your health and do so much more through the blockchain — all without needing a middleman or any other third party.
BITCOIN CASH (BCH)
Like Bitcoin, Bitcoin Cash (BCH) is a set of protocols that aims to continue Satoshi Nakamoto’s original version of an inexpensive online payment system. Its supporters wished to address the perceived stagnation of BTC growth and utility due to its longer confirmation times and higher transaction fees. They believed that the solution was to increase the size of each block in the blockchain from 1MB to 8MB in an effort to speed up confirmation times and lower fees. When the rest of the BTC community did not accept the idea and the 2017 hard fork happened, BCH was born.
EXERCISE CAUTION AGAINST FAKE CRYPTO OPPORTUNITIES
From hardware wallet theft, exchange scams, fake ICOs, cloud mining schemes, MLM, and more, the popularity of cryptocurrencies has also increased the number of crypto scams and fraud. Protect your investments by only buying, selling, and storing your Bitcoins and Altcoins on legitimate platforms.
And although cryptocurrencies are generally not controlled by a single authority,The Securities and Exchange Commission in Thailand (SEC) have issued virtual currency regulations and require a license for cryptocurrency wallet providers and exchanges to legally operate.
Did you know? Coins.co.th is the first digital currency company in Thailand. Which has been granted licenses to operate digital asset business from the Thai Ministry of Finance.
BUY AND SELL CRYPTOCURRENCY WITH COINS.CO.TH
With your Coins Wallet, you have an all-in-one platform where you can safely buy, sell, and store your BTC, ETH, and BCH at any time of the day.
Disclaimer: Buying bitcoin and other cryptocurrencies carries a high level of risk, and may not be suitable for everyone. Cryptocurrency prices are highly volatile and can go up and down in real-time. Make sure to only buy as much as you can afford to lose.
