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What Is Cryptocurrency? Bitcoin, Ethereum, and Altcoins Explained

Comprehensive guide to cryptocurrency basics, covering Bitcoin, Ethereum, and alternative coins with their unique features and use cases.

10 min read
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Cryptocurrency Basics

What Is Cryptocurrency?

Cryptocurrency is digital money that uses cryptography for security and operates on blockchain technology. Unlike traditional currencies controlled by governments and banks, cryptocurrencies are decentralized and operate on peer-to-peer networks.

Bitcoin (BTC)

The first and most well-known cryptocurrency, created as digital gold and store of value.

Ethereum (ETH)

A programmable blockchain platform that enables smart contracts and decentralized applications.

Altcoins

Alternative cryptocurrencies that offer different features, use cases, and innovations.

Understanding Bitcoin

Bitcoin was created in 2009 by the pseudonymous Satoshi Nakamoto as the world's first cryptocurrency. It serves as digital gold - a store of value that's scarce (only 21 million will ever exist), durable, and transferable without intermediaries.

What Makes Ethereum Special

Ethereum, launched in 2015, introduced smart contracts - self-executing contracts with terms directly written into code. This innovation enabled the creation of decentralized applications (DApps) and laid the foundation for DeFi, NFTs, and much more.

Popular Altcoins and Their Use Cases

Altcoins (alternative coins) are cryptocurrencies other than Bitcoin. They often aim to improve upon Bitcoin's limitations or serve specific use cases like faster transactions, privacy, or smart contract functionality.

How to Get Started

To start with cryptocurrency, you'll need to understand wallets, exchanges, and basic security practices. Begin with small amounts and focus on learning before making significant investments.

Continue Your Crypto Education

Learn more about wallets, security, and trading in our comprehensive guide