Top 10 Cryptocurrency Questions and Answers!

"Learn and understand cryptocurrencies in just a few minutes from the basic questions to advanced answers unlocked the hard way by experience! Read more at http://jerry.tips/10crypto on https://steemit.com/@jerrybanfield/.

Top 10 Cryptocurrency Questions and Answers!

1. What are cryptocurrencies like Bitcoin, Steem, Ethereum, and Litecoin? Digital currencies such as Bitcoin and Steem are like electronic money issued and managed by users. Servers setup by entrepreneurs and companies handle all the transactions while exchanges like Coinbase and Bitstamp allow changing fiat currency like USD to cryptocurrencies like Bitcoin which provides the real value. Bitcoin is currently accepted as payment for goods and services on thousands if not millions of websites worldwide with continuing adoption every day. Cryptocurrencies are also a popular choice for the black market because of relative anonymity and ease of use compared to using credit cards and bank accounts. Digital currencies are also very popular in countries like China where moving wealth out of the national economy and into the global market is difficult.
2. How is the value of a cryptocurrency determined and where can I see it?
https://coinmarketcap.com/ has a list of cryptocurrencies ranked by the value of 1 unit of that currency times the cost on an exchange to buy it which equals the market capitalization. For example, 1 Steem today is worth $1.56 on Poloniex and Bittrex as I write this. With 235,749,278 STEEM available, that means in theory to buy every Steem at the market price today would cost $1.56 times 235,749,278 which equals a total market capitalization of $368,544,488. As you can see these numbers are all really fiction because the price moves all the time as does the quantity available meaning no one is going to actually be able to buy all the Steem in the world with $368 million. Still, the market capitalization gives a rough estimate of the total value today of a digital currency.
3. What are the most exciting reasons to become involved with digital currencies? With the ability to transfer money in just 3 seconds to anyone in the world with a Steemit wallet without any fees, digital currencies like Steem make sending and receiving money 10 times easier than using wire transfers, PayPal, or Western Union.
4. Worst part about using cryptocurrencies? Lose your password or make a mistake in the transaction and you lose it just the same as if you lost your wallet or mailed cash to the wrong address.
5. Which cryptocurrency is best to buy today? The best cryptocurrency to buy is one we are willing to hold onto even if it goes down. For example, I believe in Steem enough that I am willing to hold it even if it goes down 99% and would start buying more of it if the price dropped. I have no intention of selling and am continuing to inve
6. When to sell a cryptocurrency? When the digital currency became a means to an end of making money instead of an investment I was excited about, I sold it because why have my money tied up in something I no longer care about?
7. Where are the best websites to use for changing fiat like USD and EUR to digital currencies like Bitcoin, Ethereum, Litecoin, and Steem? I use Coinbase.com with Bitstamp.net as my next best option for buying and selling Bitcoin, Ethereum, and Litecoin to USD because I can make direct transfers from my bank account and quickly move Litecoin into an exchange where I can then buy anything else. If you would like to try Coinbase, would you sign up with my link at https://www.coinbase.com/join/53f220834b1a7fd652000013 because Coinbase will give us each $10 for you using my link?
8. What exchange is working the best today to buy altcoins? Bittrex.com is where I am buying and selling most of my Steem and Steem Dollars into Bitcoin because the transactions complete in about half an hour total from sending SBD to Bittrex to having USD in my Coinbase wallet. For buying into Steem, the reverse is true