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1. Definition of Cryptocurrency
As a kind of digital currency (also called virtual currency), cryptocurrency is a medium of exchange that uses cryptography to ensure the security of financial transactions and digital assets. Unlike the traditional currency or fiat, cryptocurrency is no longer issued and managed by central bank. Instead, it is generated from a decentralized and distributed ledger system, typically called blockchain, by calculating and solving some math problems. In other words, the process of cryptocurrency production is called mining. Here is an example of Bitcoin mining.
2. Current Transaction Modes for Cryptocurrency
Similar to fiat currency, cryptocurrency is also tradable. There are 3 popular transaction modes for cryptocurrency on most crypto exchanges around the world.
1) Fiat to Crypto Trading
You can use fiat currency to purchase cryptocurrency in crypto exchanges. Before that, you have to do KYC in the exchange platform, and adding your debit card or other payment methods. Then, you can choose to buy BTC, ETH, LTC or any other with fiat.
2) Crypto to Crypto Trading
Transaction between cryptocurrencies means that you can use BTC to buy ETH, LTC, EOS and more. In fiat to crypto transaction, it uses fiat to price a kind of cryptocurrency. But in crypto to crypto trading, for example, BTC's current price is used to price another crytocurrency.
3) Cryptocurrency Leverage Trading
In leverage trading, also called crypto futures trading, cryptocurrency holders can leverage their existing amount of tokens/digital assets to enter a larger trade. That means you must deposit the minimum amount of BTC, ETH, LTC, etc. as margin to open a position. Then, you can open long or open short, and choose 5x, 10x, 50x,etc.
In Bexplus.com, we offer 100x leverage ratio, which means when the BTC price rises or falls 1%, you can make 100% profits. It's a good chance for you to earn money with small capitals.