What is a cryptocurrency like Pandacoin, Bitcoin, Litecoin and Dogecoin? After-all, doesn’t money have to be backed by a government or a commodity like gold to be worth anything? What are crypocurrencies, and how are they made?
A cryptocurrency is a digital currency stored in digital form on what is called a “blockchain”, distinct from traditional currencies which are represented in physical form with paper/plastic notes or metal coins. The blockchain can be understood as a digital public ledger which tracks coins coming into existence, and coins moving from place to place. This digital currency in the form of information is created through the process of solving algorithms. That is, you start off with an algorithm or formula which contains the information in question, which is then solved.
How do you get started with buying cryptocurrencies? Pandacoin's Crypto Crash Course shows you different methods of how to buy bitcoin and why it's required to buy other cryptocurrencies.
Some of you might be thinking “Alright, I understand mining and such but what if I just want to buy some cryptocurrency and invest that way?” In the past, the first step has been to purchase bitcoin. In order to purchase bitcoin with dollars or whatever your nation’s currency is, you have a couple of choices. The first choice is to attach a bank account to a crypto currency exchange like Vault of Satoshi, Cryptsy or Moolah, and purchase bitcoin by trading your dollars or Euros, etc, for bitcoin, at which point you can use the exchange to trade for any other coin you wish to own.