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You may have heard of Bitcoin, but there is much more to the cryptocurrency than that. Our guides make learning about cryptocurrencies easy – allowing you to buy, trade, hold and earn cryptocurrencies in less time than it takes to set up a new bank account.
Start investing today with our picks of the best US cryptocurrency exchanges or learn more about individual coins and where to buy them. Don’t forget to check out our best cryptocurrency wallets guide to learn how to keep your cryptocurrencies safe.
Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance does not guarantee future results. Potential regulations or policies could affect availability and services provided. Talk to a financial professional before making a decision. The researcher or author may own the cryptocurrency discussed on this page.
What is cryptocurrency?
Cryptocurrencies are digital assets that have value, just like a $10 bill is a physical token with $10 assigned to it.
The difference is that cryptocurrencies are electronic, they only live on the Internet. For a cryptocurrency to have value, its currency must be unique, verifiable, and non-duplicate. The Bitcoin blockchain was the innovation that made this possible.
Crucial to cryptocurrencies is the principle of decentralization. There is no single authority or company (such as a bank or government) that controls cryptocurrencies. The idea of taking control of your assets and removing dependence on any kind of intermediaries is something you will hear about a lot.
Decentralization also makes cryptocurrencies a powerful medium of exchange because it reduces costs and transaction processing times.
Thanks to these innovations, legacy companies such as Visa, PayPal, and many banks have also begun to adopt cryptocurrency and blockchain technologies.
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How does cryptocurrency work?
Cryptocurrency uses encryption technology to secure individual assets in a database called a “blockchain.” Blockchain technology records transactions on the network in a way that cannot be changed.
You can think of a blockchain as hundreds of connected computers that share information with each other. This creates a record of data that can be used to verify that each crypto transaction is legitimate and secure.
Some blockchains use a variety of proof-of-work or proof-of-stake algorithms to execute transactions. Proof of work is where the term “bitcoin miners” comes from.
Miners run powerful computers that solve complex mathematical problems, which helps secure the blockchain.
Proof of Stake is a little different. This algorithm uses staking – the process of locking cryptocurrency into a specific blockchain wallet in exchange for a reward. Staking protocols use “nodes” – small copies of the blockchain that run on thousands of different computers.
Understanding how a cryptocurrency algorithm works in detail is not necessary – or easy – but it can help explain price movements.
What are the most widely traded cryptocurrencies?
You may be surprised to learn that Bitcoin (BTC) is not the most widely traded cryptocurrency, although it usually falls in the top three. Instead, it is the dominant cryptocurrency by market cap — a measure that shows the circulating supply of a coin, multiplied by its value.
Take a look at today’s top 10 cryptocurrencies by market cap in the chart below.
How to buy cryptocurrency
- Compare crypto exchanges
The easiest way to buy cryptocurrency is through an exchange or trading platform. Features to look for are low fees, supported currencies, and deposit methods. Registering an account with a US-based exchange will require a form of government identification. - Deposit money
To deposit USD into your exchange account, you will first need to verify your identity through a process known as KYC. Most exchanges accept instant transfers from a bank account, while others also support purchases with credit cards and sometimes cash. - Choose a cryptocurrency
There are thousands of cryptocurrencies to choose from. Do thorough research on anything that interests you, check trends, and stay up to date on the latest cryptocurrency news before investing any money. - Build your own cryptocurrency wallet
Most exchanges allow you to buy cryptocurrencies instantly using the funds deposited in your account. Some platforms also have advanced market options and trading pairs that may be useful for more experienced traders. - Store your crypto
You can choose to leave your assets in your stock exchange portfolio, but this comes with some additional risks. It is generally recommended to move your cryptocurrencies to a non-custodial wallet or hardware wallet for increased security.
Where to buy, sell and store cryptocurrencies in the US
Investors can now choose from a number of well-established and feature-rich cryptocurrency exchanges. If you’re just starting out, look for FinCEN-registered exchanges that offer USD deposits using your preferred payment method.
Click Go to the site When you are ready to create an account with any of the providers.
Is cryptocurrency safe?
There are a number of risks associated with purchasing, storing, and using digital currencies. Before you get started, do plenty of research and make sure you understand how to keep your cryptocurrencies safe. Some of the main risks to be aware of include:
- Poor organization. Cryptocurrencies are still a largely unregulated market, which means you may not be protected if your funds are lost or stolen. Look for platforms registered with FinCEN and provide an insurance fund.
- Volatile prices. Cryptocurrencies are more unpredictable than traditional markets, and huge price fluctuations over a short period are not uncommon. For this reason, your investment can quickly lose value.
- Vulnerable to hacking. Several million dollars have been lost due to successful hacks of cryptocurrency exchanges, wallets and blockchains. It is important to understand that without proper security measures such as using a hardware wallet, securing your private key, and enabling two-factor authentication, your funds may be stolen.
- Steep technical learning curve. Understanding the complex technical underpinnings of potential cryptocurrency investments can quickly become confusing. You’ll also need to fully understand concepts like gas fees and wallet addresses before interacting with the blockchain, or you’ll risk a complete loss of funds.
- He cheats. As cryptocurrencies have become popular, cryptocurrency-related scams have also become widespread. Be very wary of deals that seem too good to be true, do thorough research into all platforms or projects before putting your money into them, and never reveal your private key.
Frequently asked questions
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If you’re just starting out in the world of cryptocurrencies, you may feel overwhelmed. Use our simple guides to research and compare different currencies or take a look at our curated list of the best cryptocurrency exchanges and wallets to buy and secure your chosen asset.
Learn how to buy Bitcoin, Ethereum, and other cryptocurrencies
There are now over 10,000 cryptocurrencies and tokens, with new coins being released all the time. We’ve cut through the hype and written guides on how to buy some of the most widely traded cryptocurrencies, like Bitcoin and Ethereum, as well as hundreds of others.
Compare crypto exchanges in the US
Compare dozens of major exchanges on features, fees, cryptocurrency selection, and more in our comprehensive platform reviews.
Find the best cryptocurrency wallets to store your cryptocurrencies
Hardware, mobile, hot, cold… It’s hard to know where to start with storing cryptocurrencies. Our guides explain what’s in your wallet to help you find the best options for comfort and security.
Learn about cryptocurrency trading
For more advanced investors, cryptocurrencies can be a way to diversify your investment portfolio. Read our collection of trading guides to get your bearings first.
Learn how to earn crypto returns
Cryptocurrency earning products are still in their infancy at the moment. Make sure you have everything you need to make an informed decision.
Dive deeper into decentralized finance (DeFi).
From staking to smart contracts, our guides demystify DeFi and help you reach the new frontiers of finance.
Learn about cryptocurrency trading
For more advanced investors, cryptocurrencies can be a way to diversify your investment portfolio. Read our collection of trading guides to get your bearings first.
Learn how to earn crypto returns
Cryptocurrency earning products are still in their infancy at the moment. Make sure you have everything you need to make an informed decision.
Dive deeper into decentralized finance (DeFi).
From staking to smart contracts, our guides demystify DeFi and help you reach the new frontiers of finance.
Cryptocurrency statistics and forecasts
Get expert insights and analysis across the cryptocurrency sector or use our forecasting tools to help predict where the coin price might move.
Cryptography research and tools
Cryptocurrencies are evolving at dizzying speeds, with new concepts, currencies, and technologies emerging all the time. Stay on top of the latest trends with our industry data, consumer research, and helpful tools.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance does not guarantee future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the websites of the relevant regulatory authorities before making any decision. The researcher or author may have holdings in the cryptocurrencies discussed.
