Top Bitcoin Cryptocurrency Wallets, Exchanges, Miners & Companies

When bitcoin launched in 2009, most people didn’t pay any attention to it. Sure, there was the initial furor –as with anything that threatens the status quo, particularly from financial experts and mainstream finance institutions rubbishing the concept and essentially stating it wasn’t even worth talking about.

Fast forward to 2017, bitcoin has gone on to become the world’s most valuable cryptocurrency –currently exchanging at $5,260 to 1 BTC (you’ll learn more about all these later), and has more importantly, led to the birth of so many other cryptocurrencies –a few of which have succeeded and many failed.

Naturally, this outstanding success of an alternative currency has forced many people to take notice of them. Unfortunately, there isn’t a lot of information about cryptocurrency out there.

Yes, there are tons of videos about the more technical terms, as well as a few people making claims of becoming financially free using cryptocurrencies like bitcoin. But the reality is that most people don’t know where to begin, what the basic concepts are and so much more.

That’s what we intend to do with this guide. The goal is that by the time you’re done reading this guide, you would have the comprehensive foundational working knowledge, enough for you to go out there and start making some life changing money for yourself –yes, investing in the right cryptocurrencies can make you very comfortable. They can also bankrupt you if you’re not careful.

So, read on to learn everything you need to know about cryptocurrencies. In this guide, we’ll be examining the concepts, trends, historical antecedents –if any, emerging currencies, current successful cryptocurrencies, investment strategies for crypto, and a whole lot more. This will be quite in-depth and exhaustive. That said, let’s jump right in.

Introduction To Cryptocurrency

You’re probably reading this guide now because you’ve been hearing about bitcoin price spikes or dips (there’s been a lot more mention of this) in the news. For most people, the curiosity about bitcoin and other cryptocurrencies often stems from wanting to know if it’s another ponzi or HYIP (high yield investment program) scheme.

In fact, when we first learned about it, we thought it was another Bernie Madoff scheme in the making. Then, we heard it was used in the active trade of illegal items on the dark web.

So, that just blatantly turned us off… until we heard about another crypto called ethereum and its recent price spike. This basically peaked our interest again. So, we decided to check “this crypto thing” out gain, because… well, you never know. Smart, right;)?

Anyway, after checking it out again, our initial cynical perspective changed from “what the heck is this”, to “whoa, that’s amazing”. When you understand the concept, infrastructure and tech behind crypto, as well as the potentially huge rewards, you will have the exact same reaction, we promise.

So, is there some merit to cryptocurrencies? The truth is there’s probably way more hype about it. Has it minted a few millionaires? Yes. Have some people made more in a year from trading and investing in cryptos than they have made in the last five years combined? You bet. But, is it enough to make you a multimillionaire overnight? Not likely. Over time, however, it could, depending on your investment strategy and how much risk you’re willing to take.

There are speculations that cryptocurrencies will transform the way we do business, institutions, our lives, and concept of currencies –especially now that even the SEC and major finance institutions have grudgingly acknowledged its validity as a legal tender in certain places and are taking a more in-depth look at it, as against their past dismissive attitude. Maybe, maybe not. That remains to be seen.

What we know for a fact is you can make some cash from investing in cryptocurrencies –isn’t that why you’re reading this ;)?- and possibly life changing money too. But, you have to do it the right way, so you don’t end up losing your money.

This is an important point to note in the wake of many here-today-gone-tomorrow cryptocurrencies that were built up on mere speculations and hype. Our hope in writing this, is to help you avoid such pitfalls and scams, and guide you towards choosing the best possible cryptocurrencies in the market to invest in.

What Is A Cryptocurrency?

To explain this, we’ll need to talk about the current state of our currency. In the past, physical cash was everything. You needed cash for everything and had to pay in person. These days, there’s more emphasis on digital cash/currencies.

The bulk of your money is usually in the form of numbers. This makes it easy to move money anywhere, and with as little hassle as possible. Now more than ever, people can transfer millions of dollars in 5 seconds or less. In the past, that transaction would have taken a lot longer than 72 hours.

Essentially, most of the world’s money is in digital form –there’s an estimate that it’s about ninety percent- and exist somewhere on certain servers. Unfortunately, what this means is that your money isn’t as safe as you once thought.

The general idea behind a cashless society was for convenience and safety –if the criminals in your neighborhood know people have very little physical cash at home or on their person, there’s less likelihood of them being robbed. But as with all new technologies, this has its problems, chief of which is vulnerability to hackers.

There have been few incidents hackers robbing banks and individual accounts without any trace, and all within 10-60 seconds –imagine the horror of logging into your bank account to find your life savings gone.

With strong allegations of Russian interference in the last US elections courtesy of hacking, it has become even more imperative for people to protect their monies. People need a form of currency that cannot be easily hacked just like that.

This is why bitcoin, the pioneer cryptocurrency, was created, and others have sprung from it. Cryptocurrency comes from the merging of two words: Crypto and currency. As you cryptography is associated with security and encryption.

This means therefore, that cryptocurrencies are a form of secure/encrypted currency that’s less vulnerable to hacking activities, theft and inflation. These currencies are designed to be independently regulated –so, no regular financial institutions meddling with their value- automatically adjust to inflation rates, thus giving them the same spending power regardless of inflation.

For the purpose of this guide, please note that cryptocurrencies in this guide also include platforms, businesses and assets that involve the use of encrypted digital currencies or something similar. It’s not just restricted to those used in payments.

Why Should Cryptocurrencies Interest You?

Objects, concepts and currencies are primarily based on perceptions and the value placed on them by the people, society and established institutions. Based on that premise, diamonds are only expensive because the society placed so much value on them.

When it comes to cryptocurrencies, the value has largely been attributed to perception and the possible uses. But their value is largely contingent on a few parameters such as:

• Transparency
• No meddling with transaction history
• Security
• Cost and speed
• Worldwide reach

And you will find that all valuable cryptocurrencies share these attributes in one form or another. To give you more insight, let’s do a more in-depth exploration of each term.

Transparency

Cryptocurrencies are fast becoming very popular because of the transparent nature of its processes and codes. Because many of them use open source technology, you can actually find out how they are generated as well as understand the entire processes behind each and every one of them.

This is usually in contrast to the current cash system whose processes are shrouded in secret and people are left in the dark about the technology. To help simplify this, think of cryptocurrencies and the current cash system in terms of Linux and Microsoft respectively.

Linux is an open source operating system that provides you with access to the codes, while Microsoft is a closed operating system that doesn’t provide you with access to its codes. So, with Linux, you know exactly how things work, while you don’t with Microsoft.

Of course you’ll need specialized knowledge to be able to figure it out and understand the codes, but this doesn’t mean that you won’t understand the basics and utilize that knowledge to your own benefit. So, there’s no monopoly or a situation where one person controls access to the technology.

The tech is owned by one and all. Even better is the option of actually tracking and seeing the history of all transactions that have ever been made with that cryptocurrency using something called “explorers” –although there are some who claim that they don’t allow access to transaction history.

No Meddling With Transaction History

With traditional currencies, it is possible to erase transactional history as well as alter the figures. This makes cash vulnerable to manipulation. Cryptos on the other hand don’t allow for financial or transactional history modifications and alterations.

So, you can easily see just how much every transaction was worth, and rest in the knowledge that no one can get in and change figures/values. This is possible because of the highly secure and impenetrable networks running the cryptos.

Incredible Security

One of the biggest selling points of recognized and established cryptocurrencies is the powerful and impenetrable security the technology runs on. This is in huge contrast to traditional currencies that can be altered, hacked and stolen.

With them, it doesn’t take much to “disappear” evidence of financial misappropriation or have your money stolen. Someone, somewhere always pulls the strings and controls things.

If there’s an abundance of cash in the system, they can easily create situations that will trigger widespread cash shortage and vice versa. When it comes to traditional FIAT currencies, it’s all a house of cards.

A good example of this is the bankruptcy of the Lehman Brothers in 2008, an event that triggered worldwide financial crisis, and created financial turbulence that had a sizable impact on the global economy.

Cryptocurrencies’ information aren’t centralized, which makes it nearly impossible for them to be affected by negative market forces. If anything, established cryptos seem to thrive on traditional financial instability.

The details and information are replicated across many servers located in various parts of the globe. So, you can be sure that even if one server goes down, it will not prevent you from getting access to your financial details and assets.

Cost And Speed

Traditional currencies typically charge you a small fee for every transaction carried out using their services and networks. This, combined with the 3-5 business day transfer window makes FIAT currencies an inefficient option when you need to quickly move cash for business transactions.

Then, there’s the small matter of exchange rates, which can translate to a sizable cash value, depending on the amount involved. Cryptos on the other hand, may or may not cost a very negligible fee, have no need for exchange rates –so the value remains the same whether you’re sending or receiving- and your funds can be available almost instantly, depending on the crypto.

All you have to do is transfer from one wallet/account to another, and the recipient will get their funds almost immediately. Please note that some transactions reflect immediately, while others take a maximum of 1hr. It all depends on the cryptocurrency in question. Oh, and there’s no limit to how much you can transfer too.

Worldwide Reach

One of the very appealing attributes of cryptos is the absence of geographical boundaries. It doesn’t matter where you’re located, as long as you have a wallet, asset or account, you can receive and transfer funds instantly.

There’s no processing system in the traditional sense, third party banks, approval from different financial institutions in different countries, meddling regulatory institution and all the checks that accompany traditional currency transfers. All you need is a reliable internet connection, and you’ll get your money. It’s that simple.

As you can see, cryptos are essentially the way to go if you’re looking to conduct financial transactions with absolute peace of mind and the absence of ridiculous of charges or delays.

Even better is the access you have to new and emerging opportunities and markets that you currently have no access to just because of the restrictions associated with traditional currencies. This and many other benefits is the reason you need to start seriously considering investing in some cryptos.

How Does Cryptocurrency Work?

Understanding how cryptocurrency works will help you make an informed choice on what types you want to invest in as well as the best ones suited for you. Breaking this down in layman terms is a bit difficult, but we’ll try to do justice to it, so you don’t have to keep looking for other resources ;).

At the heart of every viable crypto are two non-negotiable characteristics such as the inability to alter transaction history and security. These play such a critical role in the success of everyone of them.

This is important in the wake of the huge vulnerability evident in the current global financial system. One of the biggest problems with it is the ease with which inside and outside parties can do serious damage separately or combined.

All it takes to embezzle or steal is intricate knowledge of the system and the resources to execute. As far as we’re concerned, it just doesn’t make any sense to leave the financial system to people’s whims, charity and sense of obligations. It’s the wrongest and least safe way to run a financial system.

This is mostly because of the hold that a few have on the system. The financial system is primarily at the beck and call of a few powerful and highly influential entities, who often call the shots and determine just about everything in the financial markets.

Cryptos differ in the sense that they don’t depend on people’s moral fiber to stay safe. There’s no monopoly or control by a few entities. So, it’s difficult for just about anyone to try to bring down the system or platforms.

The average crypto platform, asset or currency is run and kept together by 100s-1000s of individuals and units who all have various keys. To bring down the networks, you would have to hijack over 50 percent of these keys –an impossible task to execute.

Not just that, these people are compensated for keeping these keys safe and protected, which provides an incentive to continue keeping them safe.

Cryptos have such incredible safety measures and checks that it’s almost impossible to manipulate the system to one’s favor. To help you understand how cryptocurrencies work, the following analogy should help.

Think of your regular bank, only this one just uses ledgers where the names, customer details, accounts and deposit amounts are listed. These ledgers are how the banks keep track of what went where within the bank.

Now, imagine a cunning criminal who has the ability to get into the safe where the ledger is kept at night, goes there, alters some of those details and adds a couple more zeros to his bank balance.

With that alteration, it is now possible for him to go into the bank, and cash more money than he had before changing the figures. All the bank has to do is check his details in the ledger to confirm if he has that much and voila, he can go on to withdraw. It’s that easy.

Now, think of a second scenario where there are 7 different bank branches who not only enter their details into ledgers, but also send different individuals every day to copy the ledger details of the other 6 banks, note the final figures, and code them in a string of numbers that only the banks understand.

So, at the end of the day, each branch has 7 ledgers -1 being theirs, the other 6 being from the other branches- that they put away in safe keeping. For a thief to make the same alterations he made in the first scenario, he would have to get to all 7 branches, make the alterations, decode the string of numbers… you can already see it’s too much work.

The thing is even if he employs a team, it would still be difficult because of the encoded figures at the end of the page. So, even if the criminal and his gang attempt to waylay some of the emissaries from the bank, it would still be difficult for them to change the details across all 7 ledgers.

Even more, the banks are compensated for keeping their customers’ transactions and details safe and secure. This is how cryptocurrencies work. These have such multiple layers of security and encryption that it’s difficult to hijack, rob or steal from them.

Types Of Cryptocurrency

Before we jump in, this might be somewhat boring to those who just want to get on with the possibility of returns or income generation. If this is what you want, feel free to skip ahead to the next section. However, we feel it’s best to understand the technology behind the many cryptos so that you can intelligently invest in the one you’re most comfortable with instead of following the crowd –not necessarily a bad idea, but that’s better when you are informed.

Proof Of Work (PoW)

This is the technology that’s used for block chains and bitcoin mining. Think of it as a prime example of the analogy we used in the previous section on how bitcoin works. Here, a node has to solve a particularly difficult math question to get the reward.

Getting this done often requires the use of computing with high specs which will then consume a lot of electricity solving the math puzzle. Nodes that successfully solve these questions are often rewarded as well as paid some transaction fees.

Think of these nodes as one of the banks decrypting the code from one of the other banks in the previous section. This is one of the ways to generate some income from cryptos. By doing this, you would have joined the crypto mining and will take part in mining specific block chains.

Because miners know they can be penalized for cheating, most of them just comply and get the rewards instead –it’s just easier, really. Now, because block chain mining can require a lot of computing power, some people come together and form a mining pool. This helps them answer math questions faster and get a lot of reward in the process.

Most of the time, the reward goes to the first node to answer the questions, so having superior computing power helps with this. Therefore, with their combined computing power, income is more guaranteed, and split according to agreed terms.

Cryptos using the Proof of Work technology tend to be highly secure, particularly when they have a lot of nodes working on the block mining. Participants therefore, have to contribute significant computing power to making this successful.

The downside however, is that this technology requires huge electricity usage. For instance, the amount of energy required to complete one transaction equals the energy consumed in a household in a day.

Naturally this makes it easier for people who live in places with cheaper electricity to mine more than their colleagues in other places. Because of its security and establishment, many of the popular cryptos utilize this technology.

Some examples of cryptos using this technology include Bitcoin, Bitcoin cash, and Litecoin. These are actually in the top 5 cryptos in the world. And their values are pretty good with Bitcoin leading the pack.

Proof Of Stake (PoS)

Unlike the Proof of Work technology, the Proof of Stake technology is a lot less complicated, and cheaper too –you need far less electricity to process the transaction. With this option, you really don’t need to solve any complex math problems.

A node is simply chosen to execute a transaction. Once that’s done, other nodes will verify that the transaction has indeed been process. Think of it as a multiple factor verification process where multiple people look over your task to prove that you did the work you were assigned.

Naturally, this doesn’t come without its pitfalls, which is why there are significant checks in the system to prevent cheating. Users have to “commit” some of their currency to “safe keeping”.

This stake is there to help keep users honest. Those who cheat automatically forfeit their stake, which can often translate into significant losses –people/nodes with high stakes stand a higher chance of getting chosen to process transactions and create a block.

Because there’s no math puzzle to solve, transactions are confirmed faster, which means there are more transactions per second. This makes it great for those who need to have their funds quicker.

Cryptos using this technology include NXT and Peercoin. There are strong speculations that Ethereum will be migrating from proof of work to proof of stake technology very soon.

Proof Of Importance

This technology requires users to make a commitment first before they can join and become one of the nodes. Usually, this requires an investment of a certain amount first. Then, there’s the second requirement involving the frequent use of the network itself.

These two requirements are necessary for you to get more transactions and create a block. Users with higher usage enjoy a higher Importance Score, which means they get to enjoy more rewards and earn more money.

This technology is quite secure and can be scaled depending on the number of users/nodes. The only challenge with the tech is the initial/entry requirements. Example of a crypto platform that uses PoI is New Economy Movement (NEM)

Delegated Proof Of Stake (dPoS)

This technology is somewhat similar to the PoS, only slightly modified. In this instance, there are two classes of nodes. The first node is the Witnesses who are essentially responsible for processing transactions and are paid for the transactions, while the second is called the Delegates. These are the nodes that determine the size of the block, how much to pay the Witnesses, and number of blocks to mention a few.

This technology is primarily dependent on votes, with the most popular getting the assigned designation. An example of cryptocurrencies using this technology is Bitshares.

There are many other types of cryptocurrencies and their technologies, but these are the more popular ones.

What Can You Use Cryptos For?

This is about the most important part of this guide. If you’re going to invest in cryptos, become a blockchain miner or get into any of the crypto related initiatives, then understanding the value and how they can be used will go a long way in helping you make up your mind about it.

Asset And Investment

One of the most appealing characteristics of cryptocurrencies is their investment potential. Bitcoin is currently the world’s most popular and best sought cryptocurrency because of its growth potential.

As at November 2016, the price of one bitcoin (1 BTC) was fluctuating between $700 and $1000. As of the time of writing this guide –Oct, 2017- the value has grown to over $5600. That’s 8x the value in less than a year.

This is why it is so valuable as an investment tool. In fact, hedge fund managers and other financial institutions are calling it “digital gold” because of its meteoric rice in price, even in the face of inflation and fluctuating stock market. And with the growing demand, chances are that the prices will still go up.

There are currently just 21 million BTC in circulation. This means that as people become more aware of cryptocurrencies, they’ll want to buy it, which will in turn, drive its price further higher.

So, anyone looking to invest, can either get in now, wait until the price falls or look for cheaper alternatives like the Bitcoin Cash, Ethereum, Litecoin, Dash, Monero, Bitconnect and many others. You can get a full list of currently trading cryptos at CoinMarketCap.

Global Digital Currency

One of the most attractive qualities of cryptocurrencies is their global acceptance as a currency. Before this, there was no currency that was the same in every country or one that transcended any geographical territories.

In fact, you had to exchange currencies once you cross any border. With cryptos however, that’s completely unnecessary. Your bitcoin value is the same whether you’re located in the ‘states or in Malawi.

Your geographical location doesn’t really matter. This is probably why the SEC and Federal Reserve are beginning to look into cryptos as a viable currency. Once it officially gains global acceptance, cryptos will open up a new vista of economic opportunities for economies, countries, people and organizations.

While it’s true that many cryptos are currently subject to speculations, resulting in currency volatility, it is expected that as the world gains more acceptance of these currencies, they will become less volatile, resulting in a similar stable FIAT currency that can be traded and used as payment for commodities and services.

Investment Opportunities

There has been a proliferation of Initial Coin Offerings (ICO). These are done in pretty much the same way stock offerings are issued. The only difference being that unlike the stock market that is regulated, along with its checks and balances, these ICOs aren’t.

This means you’ll have to do your research if you’re thinking of dabbling into this form of investment. The good news is that there are quite a few successfully run ICOs that have netted their investors profits.

These are well run and organized with quarterly and annual reports. However, there are many other offerings that are just scams, and designed to rip off people. These are usually initiated and run by unscrupulous individuals, and are designed to hoodwink unsuspecting individuals into parting with their hard earned cash.

Unfortunately, these offerings often look legit because the crowdfunding platforms used offer some semblance of legitimacy. Whatever the case, just remember that these crowdfunding platforms are just that –platforms- and often have plausible deniability clauses in their terms and conditions. So, make sure you research any ICO you’re interested in properly before investing in them.

Potential Future Applications

Because cryptos are essentially defying all financial laws and breaking new grounds, we think they will also be such a disruptive force in the global economy. There’s talk of cryptos doing similar things that Uber, Lyft and AirBnB are doing: decentralizing known assets and industries, and utilizing crowdsourced assets.

For instance, block chain essentially utilizes spare computing power from millions of computers hooked up as nodes and connected to servers. Then, there are others looking to crowdsource IP addresses to create incredibly secure virtual private networks, and “borrow” hard drive space for cloud storage among others.

The reality is that there are so many potential future uses of cryptos that all we’re seeing and thinking about are just a tip of the iceberg.

Facilitate And Accelerate Artificial Intelligence Integration

We’re fast approaching a new era of robotics –essentially, a new revolution. We believe cryptos will play a critical role in accelerating the advent and arrival of that era by ensuring seamless currency transactions. Let’s explain.

Currently, if your car gets in an accident, you have to file an insurance claim, maybe sue the other party, hire a lawyer, and do a ton of other things. But, what if there’s an alternative.

Just imagine a world where if you’re involved in an accident, your car automatically assess your state of health, sends out an SOS to the nearest hospital, notifies your insurance firm, which immediately dispatches a drone to the site of the accident, and contacts your lawyers.

Upon assessment by the drone, it immediately summons an ambulance or another vehicle to come take you to the nearest hospital, depending on the severity of injuries. While you’re getting treated, the insurance company automatically issues a compensation claim to cover medical costs and vehicle repairs or replacement after getting all the information from the drone.

And all of these done within an hour using cryptos as a means of payment between each and every channel. Does that seem too farfetched? Maybe, but you can’t deny the beauty of it all. This could be the reality in the nearest future once cryptocurrencies go mainstream.

Best Cryptocurrencies To Invest In 2017, 2018 And Beyond

Cryptocurrencies have reached a $150 billion USD market cap, and with almost 1,200 cryptos to choose from –with many more springing up on a weekly basis- there are far too many for the average individual to individually research, understand their tech, and how they work, and most importantly, determine if they can be profitable for you –because that’s all that matters, doesn’t it?

We have waded through a ton of all these and have narrowed down the list to the top 10 best cryptocurrencies to invest in, in 2017 and beyond –we’ll update this on an as-needed basis.

This way, you can easily take this information, do your research and then decide on which one(s) to invest in. We’ve also included an honorable mentions list at the bottom of this section. These are cryptos we know and some we think are great or have good potential.

Most of these were picked on their reputation, popularity, market cap, storage of value, security, technology, and possible speculative benefits. That said, you still need to do your due diligence.

Don’t just believe everything we tell you. Do your research and ascertain which ones work for you. After all, cryptos have been called everything from the “’greatest tech breakthrough since the advent of the internet” to a “black hole”. With that said, let’s jump right in. Just so you know, this list is arranged in no particular order of importance.

Bitcoin (BTC)

The most popular of the lot and also the pioneering cryptocurrency, this is by far the one most people have in mind when they think of or talk about cryptos. It’s also about the most secure cryptocurrency out there –guess being first also has its advantages- with over 16 million units in circulation and a market cap of almost $99 billion USD.

It is also the only crypto that has the most global acceptance, worldwide usage, nodes and transactions. With bitcoins, you can now send and receive transfers instantly from just about anyone, anywhere in the globe.

This in part, is due to its recent software upgrade involving the use of a tech called SegWit2x. this helped streamline its transaction processes thus making it very easy to exchange cryptos and even FIAT currencies. The main tech driving this is the Proof of Work (PoW).

Bitcoin’s use is so widespread that there are now bitcoin ATMs where you can exchange some cash for a real, physical bitcoin and vice versa. Users typically use it for transactional purposes, as well as treat it as an asset where they buy and hold until the value goes up.

The latter is even more common in the wake of its meteoric value growth between November 2016 where the price of 1BTC was fluctuating between $700 and $1,000, October 2017, where its value is currently at over $5500 per BTC.

The coin is not without its challenges though. For one, it’s the crypto with the most flak, and spotlight from financial institutions and politics. Bitcoin miners too can occasionally disagree on transaction fees, which often drives the price down.

In the past, there were blatant threats of government shutting it down, but that hasn’t been the case lately. Whatever the case, there’s always a risk of it attracting undue attention from powerful parties.

Also, there’s been a backlog of transactions lately, largely due to the comparatively smaller incentives provided to miners. Subsequently, there’s the risk of miners switching to more financially rewarding platforms –a situation that will further scare away investors and cause a significant drop in value.

Ethereum (ETH)

Ethereum has been more in the news lately partly because of its spectacular market acceptance and rise. In reality though, it owes its sudden success in part, to its potential as a major Smart Contracts platform and the interest of developers who like the flexibility of its Turing based platform.

Currently priced at around $300 to 1ETH, this is one of the newer cryptocurrencies and runs on a completely different platform than bitcoin. The company recently had an Initial Coin Offering (ICO) that was quite successful. There are speculations that ethereum might be the next best contender against bitcoin.

As with bitcoin, this currently carries out transactions –its consensus method- using the Proof of Work (PoW) tech. The company aims to transition to Proof of Stake (PoS) soon. Although that remains to be seen as there are parties actively pushing back on the idea, while others have brought up the idea of running both as a hybrid and seeing which one wins.

While it sounds like a good and viable alternative to bitcoin, there are a few possible drawbacks, some of which include less enthusiastic acceptance by the populace and crypto community, and the uncertainty surrounding the shift to PoS.

The good news though is that blockchain miners and the community like the concept –and when they do, it means many are willing to become miners- as well as the presence of a solid and established corporate entity.

Litecoin (LTC)

This is another cryptocurrency that’s supposedly next in line to bitcoin. There are speculations that this might be the next bitcoin. Currently valued at over $55 to 1LTC, this is attractive because of its far lower entry cost –currently 1 percent of bitcoin- and amenable to swift effective changes that can accelerate its value.

That, and the fact that it is incredibly well known in China. We believe that the Chinese demand along is more than sufficient to keep this coin going. If you’re looking for a low priced bitcoin-like cryptocurrency to invest in and hold on to until it grows in value, this might just be the right cryptocurrency for you.

Litecoin’s consensus method is the same Proof of Work (PoW) that bitcoin runs on. People who purchase and exchange this coin, do so for the purpose of using it as an investment or purchasing and selling stuff with it.

The single biggest challenge that this faces is that bitcoin’s eventual growth may diminish its usefulness seeing as it’s pretty much a “lower grade” and cheaper version of bitcoin –there’s a reason it is called the silver to bitcoin’s gold.

But, we feel that as long as it has a solid base in China, it is still worth a shot. Apart from this, transactions are very quickly done using Litecoin. In fact, it is estimated that Litecoin’s speed of confirmation is quadruple that of its bigger cousin.

We’re also pretty comfortable with this coin because there’s a definite leadership steering the company. And the best part, it’s proven itself to be the most reliable cryptocurrency in the market recently.

Bitcoin Cash (BCH)

Contrary to what you might think, it is not the cash equivalent of bitcoin. This is an iteration –a modified version- of bitcoin whose sole purpose was to scale in ways that bitcoin hasn’t been able to. It did this by increasing its ability to eliminate the backlogs that bitcoin suffers, without compromising on the currency’s security.

As a result, users are typically less stressed, see their transactions go through without delays. This runs on the Proof of Work consensus method, and is primarily meant to be used either as an alternative currency or stored for its value until such time as the investor wants to sell.

As laudable as the idea sounds, there are few drawbacks associated with the coin. For instance, its biggest number of users are Chinese residents, and suffers from rigidity in its functions.

That said, there are pretty impressive benefits of bitcoin cash. Some of them include enhanced capacity to execute transactions. At $339 to 1BCH, its value is still higher than many other cryptocurrencies in the market. This is why it is majorly considered as a very viable alternative to bitcoin.

Dash (DASH)

This cryptocurrency’s approach to the market is one that’s solely targeted at enhancing and accelerating transactions in the FMCGs industries such as ecommerce, retail and wholesales. Dash comes from a combination of the words Digital Cash.

If you’re looking for a cryptocurrency that allows very quick execution of transactions –as is common in retail- of high volume items, this is the one to consider. It uses Proof of Work as its consensus method as well as another layer of Proof of Stake and is very user friendly.

Of course, every transaction attracts a small fee, with 10 percent of that transaction fee deployed towards maintaining and growing the currency. Currently trading at over $285 to 1DASH, this has some history and looks like it will be around for a long time if they keep growing and innovating.

This is important because that space is not only very competitive, there are new cryptocurrencies coming out with claims of doing the same, only better and faster and with lower fees. But, none of these has the establishment and security that Dash offers.

Bitconnect (BCC)

This is another crypto platform that’s primarily used for the purpose of storage of value. We’re talking about it because it seems to be all the rage these days. Anyone and everyone is promoting it, and asking others to pile on. We are a bit more skeptical seeing as there’s no solid proof of how it works –unlike other cryptos- or any corporate structure to speak of.

Frankly, it sounds like a scam to us (if you have solid proof of how it works, feel free to reach out and we’ll make the correction). Priced at over $215 per BCC, its unique angle on the market is its mode of operation.

The company guarantees a return on investment if users leave their stake in the system for a minimum of fifteen days. While this sounds all fine and dandy, we’re seriously concerned that there’s currently no mutual funds, private wealth management companies or asset/investment firms that trade on behalf of clients using bitcoins or cryptocurrency.

So, this begs the question of legitimacy and how the company provides the “return on investment”. At best, the company’s mode of operation is shrouded in secrecy. So, our first impression is that this is a pyramid scheme meant to reward the early adopters, hoodwink late adopters and rip them off their cash when the entire scheme crumbles.

How long this will take, we don’t know. But, all we’re saying is if you want to get in on bitconnect, just go in with both eyes open, and hope you’re an early adopter because these schemes are essentially about taking from one person and giving to another.

So, can you make money from this? Definitely, if you get in early enough and know when to exit the platform. Just know that there’s a real risk of losing money though.

Its consensus method is the Leased Proof of Stake (LPoS) where users borrow their currency to the blocks as nodes and expect a return after a certain number of days.

Monero (XMR)

If you’re big on anonymity and confidentiality, this is one of the best cryptocurrencies to get and use. Currently exchanging at over $85 to 1XMR, Monero is primarily used by people who want their transactions to stay anonymous and discreet on the web. This has both its merits and demerits.

The obvious demerit being that it can be used by unsavory elements to carry out shady transactions. But apart from that, it has other excellent benefits such as decentralization, guaranteed anonymity, and the ability to facilitate completely untraceable trades.

Miners looking to get into block mining will find it easier to benefit from this as they can use any PC or computer for mining purposes. This is an advantage compared to others that require computers with specific configurations and specs. The consensus method used here is Proof of Work, the same thing bitcoin uses.

Ripple (XRP)

Banks and financial institutions have largely been wary of cryptocurrencies and tend to back away from all things related to them… with one exception: Ripple. This is the world’s first cryptocurrency that’s supported and accepted by banks.

It’s widely accepted because of its unique marketplace relevance, which involves the provision of liquidity in foreign exchange markets, thus making them a viable alternative to the forex markets.

Unlike other cryptos, Ripple has its own consensus method, which is essentially called the Ripple Consensus Protocol Algorithm (RCPA). The nodes are currently hosted by banks, which means the public can’t get in on setting up the nodes.

This is not really for those looking for anonymity and privacy in their transactions, and has a structure that’s similar to FIAT currencies –zero decentralization. But given its purpose, there’s really no need for that.

NEO (NEO)

Here’s something you need to know: if a cryptocurrency has a strong base in China, that is a clear indication that it will most likely be around for a while, and is probably a good investment. Now, when that same crypto is called the “Ethereum of China”, you know that it’s very good.

NEO is that cryptocurrency, and one you should seriously consider investing in. Currently trading at over $28 to 1NEO, this currency functions through the use of Smart Contracts, and works by encouraging digital stock trading and real estate purchase, brokering and selling.

Usage of this cryptocurrency attracts zero or very low fees, and provides opportunities for people looking to get into the chinese market among many other things.

ZCash (ZEC)

Currently trading at over $220 to 1ZEC, this crypto is big on privacy and discretion. Users are guaranteed their anonymity. With a market cap of approximately $559 million, it appears that many others agree with its uses.

Its obvious usage and specificity of purpose, makes it an excellent cryptocurrency to look into. Its sole downside though is that resourceful developers who are really looking to identify individuals behind every transaction, can do so. Apart from that, it’s a pretty good crypto.

Other honorable mentions include IOTA, OmiseGo, QTUM, Tether, Bitshares, and Stratis.

How To Buy And Sell Cryptocurrencies

Now that you have made the decision on which cryptocurrency to buy or invest in, the next logical step is where to buy them, so that you can start profiting from them. The following is how you can get into the game:

• Exchanges: there are so many of these it’s difficult to choose one. We would recommend checking out Coinbase, eToro, Bitfinex, Bittrex, Poloniex, Changelly, and ShapeShift for a start. These all serve as brokers allowing you to buy and sell cryptocurrencies without any hassles. We’re currently working on a comprehensive review of each of these exchanges so you can make an informed decision. For now though, just read up on them before signing up with any of them.
• Local bitcoin exchanges: this is peculiar to bitcoin and specifically matches you with someone who wants to buy or sell bitcoins in your area, state, neighborhood or country. Check out localbitcoins.com to get started.
• Purchase from known entities: these could be your friends, colleagues, people you know, really. This is referred to as peer to peer transactions, and is usually the fastest and least risky way to get started. Ask around, chances are you know someone who knows someone who want to sell.
• Bitcoin ATMs: These are new inventions that help facilitate the exchange if cash for bitcoins and vice versa. For now, it’s only available for people looking to get bitcoins. All you have to do is pay in the equivalent of the bitcoins you want, and the ATM will dispense it in bitcoin shaped gold coins –which is pretty awesome by the way. Coin ATM Radar has a list of all bitcoin ATMs in the country.

Finally, the cryptocurrency scene is murky at best right now. There’s no regulatory body or even legal backing. So, if someone dupes you, it may be difficult to report the person to the police seeing as cryptos aren’t legal tenders yet. So, it is very important to do your due diligence while getting into cryptos. Some of the following tips should help:

• Avoid very new cryptos until you’re very sure of them. This is important because there are many unscrupulous individuals setting up multiple cryptocurrencies and using that to scam unsuspecting individuals. Lots of folks have lost sizable monies to these criminals. So, be careful. Always stick to the cryptos you know.
• Look for them in the GitHub Repository. This is where all reputable cryptocurrency developers upload their updated codes. If they’re not there or don’t update their codes frequently –every worthwhile cryptocurrency updates their codes multiple times a year, chances are they may be a scam.
• Avoid those offering you sure returns on your investments. There’s no such thing. Take a look at bitcoin. Sometimes, the prices fluctuate so bad, you’d need nerves of steel to keep your funds there. The market is very volatile right now, so anyone assuring you of guaranteed ROI is probably running a pyramid scheme –remember bitconnect.
• Pay attention to the number of confirmations –you should receive at least 6 for every transaction.
• Look up their team and Initial Coin Offering –if they have any. You want savvy developers with good experience working on your cryptos of choice, as well as a transparent ICO process that shows you everything.

The Ultimate Guide To Cryptocurrency Conclusion

That’s pretty much everything… for now! We’ll keep updating this guide as we see fit and as new information emerge. We hope that you have been able to learn enough to now go ahead and start investing in cryptocurrencies. Good luck and let’s know how you’re faring.