While there are other articles that delve deeper into this topic, the following chapter is an introduction to some of the ways to get your hands on some cryptocurrencies:
Cryptocurrencies can be earned through a computationally taxing process known as mining. Depending on the design and purpose, some cryptocurrencies (e.g. Bitcoin) require ‘miners’ to solve complex mathematical puzzles in order to create new blocks and receive their rewards in the form of cryptocurrency.
Aside from mining, cryptocurrencies can be bought. This is, in fact, the most convenient way to obtain cryptocurrency, as virtually all cryptocurrencies can be found on cryptocurrency exchanges, where they can be easily traded for other cryptocurrencies, or for fiat currency. Follow this link to learn more about how to buy cryptocurrencies on ProBit Global.
To buy cryptocurrency, follow these steps:
- Choose a platform: there are two options to choose from: a traditional broker or a cryptocurrency exchange. Traditional brokers are online platforms that offer cryptocurrency trading along with other financial assets like stocks, bonds, and ETFs. Because they don’t focus exclusively on cryptocurrency, they often have a smaller selection of tokens. On the other hand, cryptocurrency exchanges offer a wide variety of cryptocurrencies, and more features like wallet storage, interest-bearing products, options, and more, to which they charge asset-based fees.
- Fund your account: to begin trading, users need to fund their accounts. With the various payment options available, it is now possible for users to buy their crypto of choice with fiat currencies (e.g. US dollar) using debit or credit cards, or bank transfers.
- Place an order: to buy cryptocurrencies, users can select a "buy" option, choose an order type, enter the required amount of cryptocurrencies, and confirm the order.
Depending on its use case(s) or the products offered by certain cryptocurrency exchanges, some projects allow their communities to earn their native cryptocurrency upon meeting certain conditions. It could be awarded for free (e.g. airdrops) as a reward for community members’ loyalty. Others, in a bid to drive cryptocurrency adoption or reach a wider user base, give out cryptocurrencies to users for completing given tasks over a given period of time.
Similar to earning, staking is a way for users to get rewarded with cryptocurrencies for holding certain cryptocurrencies. The conditions, which could include the purpose for staking e.g. to validate a project’s network, timeframe, expected reward, etc, are clearly spelled out from the get-go. Locked-up cryptocurrencies in a staking event either to help run the blockchain of a cryptocurrency or for other reasons are not retrievable by the holder during the period of being incentivized. You can learn more about staking and some of the available staking platforms here.