I am new to Crypto currencies and frankly I don't know much about them or blockchains or exactly how it all works.
After having a look around the web I noticed that there are lots and lots of these currencies floating around. Now I know of Bitcoin and Steem but there are now over 700 crypto-currencies in existence.
This makes me nervous.
Here are some questions you may know the answers to.
- Do these currencies have anything in common are they all separate currencies with their own blockchains?
- What is the purpose of having so many different currencies?
- How do you determine which one is safe and which one isn't?
- If I am buying these currencies, should I buy more than one or just stick to one?
- What is the best currency exchange to buy from?
I hope you can answer some of these questions for me or point me in the right direction.
Please leave your comments and thanks for helping me figure this out!
They are all seperate, some can have apps built on top of the blockchain. The purpose is competition and trying to fix some of BTCs shortcomings. Time tested cryptos are the safest. Buy green and time tested coins! Ones you can use in your everyday life. I started with Ether , Litecoin, & Bitcoin. I heard Gemini has the best rates. Coinbase & Bitstamp work too! Best of luck!
Thanks for the input! It does help!
Are the blockchains separate also?
Yes all blockchains are seperate
Thanks!
Almost every new comer has these question. This mess is because of 3 reasons:
They ale utilize cryptography and they their own Blockchain.
In open market, one is encouraged to invent and compete. Multiple crypto currencies are providing different solutions.
Like everything, by doing fraud, and making fake currencies, this is a time for people to make money, by essentially doing nothing and copy-cating/renaming coins.
So, at the end, do your due diligence before investing, and invest what you can lose.
Thanks!