A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. Bitcoin, created in 2009, was the first decentralized cryptocurrency but since then numerous cryptocurrencies have been created, frequently called altcoins, as a blend of bitcoin alternative.
The Bitcoin system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain, which is a public ledger that records bitcoin transactions. The bitcoin protocol specifies that the limit is 21 million bitcoins in circulation, no more bitcoins will be created and therefore this supply limitation along with the increasing demand is pushing up the price.
Ethereum is the second most valuable form of digital money after Bitcoin and it’s also it a decentralised payment network that allows anonymous payments to be sent across the Internet without the need for a bank or other third party. But what makes Ethereum unique is that allows developers to create smart contracts on the top of the Ethereum blockchain and this has enabled the raising of new ecosystem of tokens which are being used to rise funds for new crypto projects and startups.
If you want to buy Bitcoin or Ethereum, we recommend you to use Coinbase, a digital asset broker headquartered in San Francisco, California. It is considered one of the most secure platforms to buy and sell digital assets in exchange for fiat currencies (USD or EUR).
Basically, Coinbase makes it easy to convert your local currency into and out of Bitcoin or Ethereum.
This first step is to sign up for a Coinbase account. This will give you a secure place to store your bitcoin, and easy payment methods to convert your local currency into or out of bitcoin.
2. Connect Your Bank Account
After you sign up, connect your bank account. You’ll need to complete some verification steps before you can use the account. Once the verification steps are complete, you can start a purchase.
3. Buy and Sell Bitcoin or Ethereum.
After starting your first purchase, Coinbase will deposit your Bitcoin o Ethereum in your personal wallet. You can transfer or receive from that wallet. Remember that the price of cryptocurrencies over time, so check first the current exchange rate before you buy.
We strongly recommend to store your Ethereum on MyEtherWallet.