What is Bitcoin?
Bitcoin (BTC) is a global cryptocurrency that is decentralized, peer-to-peer, and does not involve a middleman such as a bank. It was created in 2009 by developers based on the whitepaper from an unknown person or group using the alias Satoshi Nakamoto. As a digital currency people are able to send, receive and make purchases with it. Bitcoin runs on blockchain technology which makes it secure and trustworthy. Although transactions are public, user information is not displayed, only the user’s wallet ID. Over the years Bitcoin has developed a use case as digital gold and a hedge against inflation.
What are Altcoins?
Altcoin is a shorten version of the term “alternative coin” which is a category of cryptocurrency that is not Bitcoin. Essentially any cryptocurrency outside of Bitcoin is considered an Altcoin. Some popular Altcoins include Ethereum (ETH), Litecoin (LTC), Ripple XRP, Cardano (ADA) and Stellar Lumens (XLM). Many altcoins are digital assets that are used as utility tokens.
What are NFTs?
NFTs also known as Non-Fungible Tokens are tokenized unique media which live on the Blockchain. Non-Fungible means non replaceable, something that is unique, like the Mona Lisa painting. The NFT technology is being adopted by artists, sports and entertainment industry, music industry, and many other industries.
Investing in Bitcoin & Altcoins
How to Keep Your Cryptocurrencies Safe
There are multiple ways to store your cryptocurrency. However, not all of them are safe. You can leave your cryptocurrency on an exchange, but it is not recommended as exchanges can be hacked or shut down. Software wallets such as Exodus and Jaxx are pretty safe. But the safest way to store your cryptocurrency is by using a hardware wallet, also known as cold storage, which is an electronic device that you load your crypto on and store in a secure place such as a safe in your home. The most popular hardware wallet is the Ledger Nano X, click here to learn more.
Taxbit is an easy way to track your taxes for all crypto trades. You can simply connect your crypto exchange accounts and it does the rest. Selling your crypto triggers capital gains taxes and Taxbit will help you track this and generate the respective tax forms for your filings. Click here to learn more.