Cryptocurrencies are digital or virtual currencies that use cryptography for security. Unlike traditional currencies, which are controlled by a central bank, most cryptocurrencies are decentralized and operate using a technology called blockchain. Bitcoin was the first cryptocurrency, launched in 2009, and has since inspired thousands of other digital currencies. Cryptocurrencies have become a global phenomenon, attracting investors and technology enthusiasts worldwide. But what exactly are cryptocurrencies, and how can you start investing in them? This guide provides an overview of cryptocurrencies and investments in them.
What are cryptocurrencies?
Cryptocurrencies are digital or virtual currencies built on a technology called blockchain. A blockchain is a decentralized network that ensures all transactions are secure and transparent. Unlike traditional currencies like the Swedish krona or the U.S. dollar, cryptocurrencies are not governed by a central bank. Bitcoin, launched in 2009, was the first cryptocurrency and remains the most well-known. You can read more about Bitcoin in our article What is Bitcoin?.
How do cryptocurrencies work?
Most cryptocurrencies are based on blockchain technology, which is a distributed database where transactions are stored in blocks. Each blockchain is secured through advanced cryptography, making all transactions visible and unchangeable once they are added to the chain. This process creates a high degree of transparency and security. Transactions on a blockchain are verified by computers in a network, called nodes. For a transaction to be added to the blockchain, it must be approved by the network, which often involves a process, such as mining, where computers solve complex mathematical problems.
What is the price of cryptocurrencies?
The price of cryptocurrencies like Bitcoin and Ethereum fluctuates based on demand, supply, and market trends. Prices can shift quickly due to market volatility, making it essential to follow live prices if you plan to buy cryptocurrency. You can stay updated on Bitcoin’s price through platforms like BT.CX, where you can also buy and sell Bitcoin in real time.
Types of cryptocurrencies
There are thousands of cryptocurrencies on the market, but most fall into a few main categories:
- Bitcoin (BTC): The original cryptocurrency, often referred to as "digital gold," is considered a store of value. You can easily and quickly purchase Bitcoin on BT.CX. Read more about Bitcoin here.
- Ethereum (ETH): A platform for smart contracts and decentralized applications.
- Stablecoins: Cryptocurrencies pegged to traditional currencies, like the U.S. dollar, to reduce volatility.
- Altcoins: Other currencies offering specific features, popular among investors looking to explore new technologies in crypto.
Why choose bitcoin?
Bitcoin (BTC) was the first cryptocurrency and has become a symbol for the entire crypto market. Bitcoin’s long history makes it an attractive choice for investors seeking a reliable, long-term investment. Unlike many other cryptocurrencies, Bitcoin has a fixed maximum supply of 21 million coins. This contributes to Bitcoin's value-preserving properties and makes it usable as a hedge against inflation. As the most widely accepted cryptocurrency, Bitcoin is accepted by companies, platforms, and even countries! El Salvador, for instance, has adopted Bitcoin as a payment method.
How to buy cryptocurrencies?
Buying cryptocurrencies in Sweden is easy, as BT.CX offers Swedish support and quick assistance. Follow the steps below:
- Choose a secure platform: Security and regulation are essential when trading cryptocurrencies in Sweden. There are several platforms to choose from. Research your options and select the one that best meets your needs.
- Choose a cryptocurrency: Research and choose the cryptocurrency you want to buy based on your investment goals and opportunities, for example, Bitcoin.
- Create an account: To buy larger amounts of Bitcoin, you may need an account.
You can easily buy Bitcoin through BT.CX, a secure and reliable Swedish service. BT.CX offers two options: BTCX Express, where you can buy Bitcoin without creating an account, and Standard BTCX, where you can buy unlimited amounts of Bitcoin after registering. Both options use BankID to secure your transactions.