The cryptocurrency and blockchain industries are booming and now is as good a time as any to get in. Before you do, we’ve curated this Oobit’s guide to a cryptocurrency market map to help you smoothly navigate the nascent technology and everything that comes along with it. Strap yourselves in, you’re about to get crypto educated.

  1. Cryptocurrencies
  2. Blockchain
  3. Mining
  4. Trading
  5. Wallets
  6. Security
  7. Oobit’s guide on how to pass KYC
  8. Learn More
  9. About Oobit

1. Cryptocurrencies

Cryptocurrencies are digital assets that can be traded peer-to-peer without the need for a middleman or intermediary. Operated by a decentralized network, these digital assets are free from bank and government control, and are maintained by cryptography.

Created by Satoshi Nakamoto in 2008 as a response to the global financial crisis, Bitcoin is the original cryptocurrency. Satoshi Nakamoto remains a mystery to this day, however the technology they created is gaining traction as more individuals and entities adopt the concept. Along with Bitcoin, the anonymous entity also introduced the world to blockchain technology, which is the technology behind Bitcoin. This technology provides a transparent and immutable record of all transactions, and can be implemented into any industry. Today, hundreds of big corporations are adopting the technology to streamline their businesses.

Since Bitcoin came into existence, thousands of new cryptocurrencies have been created, with many offering unique products and services. According to CoinMarketCap, there are over 7,000 cryptocurrencies to date. Let’s take a look at the top 10 based on market capitalization:

  • Bitcoin
  • Ethereum
  • Binance Coin
  • Cardano
  • Tether
  • XRP
  • Solana
  • Polkadot
  • Dogecoin
  • USD Coin

2. Blockchain

What is blockchain? We know that it’s the technology behind Bitcoin, but how does it work? Think of blockchain as a transparent public ledger that stores information in blocks that are connected to a chain. Everytime a new piece of information is added to the chain via a block, that block is then shared with a network of nodes around the world. Blockchain is operated by a community of nodes, as opposed to a central server that acts as the governing agent.

Once a block is added to the blockchain, the nodes all agree that that information is correct and it is permanently added to the chain. If someone was to try to change the information in a block that has already been accepted by the network, the nodes will reject it and the changes will not be made. One of the brilliant benefits of blockchain is that it is immutable, meaning that no one can make changes to information that has already been added.

This technology is powerful even outside of the cryptocurrency community, with many big corporations incorporating it into their business models, including Microsoft, Nestle, Shell, and many more.

3. Mining

Mining refers to how cryptocurrencies are created and involves the processing of transactions and adding them to the blockchain. Gone are the days of mining being associated with coal stains and shovels, crypto mining is something entirely different.

Crypto mining involves a number of computers that work to solve a cryptographic puzzle in order to verify the transactions on the blockchain. The first miner to solve and complete the puzzle, verifies the transactions in a block, adds the block to the blockchain, and gets rewarded for their time and effort. In the process, other miners on the network validate this information to ensure that all is accurate.

Mining is an integral part of the cryptocurrency industry as the miners are not only responsible for verifying transactions, but also for keeping the network stable, safe and secure.

4. Trading

Trading cryptocurrencies has become a viable way to make money. Many traders working in the traditional financial sectors have moved over to the crypto side to take advantage of the often volatile markets.

Trading cryptocurrencies can be done through an exchange, where you buy or sell the cryptocurrency, or through peer-to-peer networks, where people from around the world can exchange crypto for crypto, or crypto for fiat, with each other.

Trading is simple, and usually requires having a wallet, an account on the platform you’d like to trade on, and a KYC verification. Not all platforms are created equal, so make sure you conduct your crypto trading on a reliable platform, Oobit is a great start!

5. Wallets

Now you’re ready to buy crypto, but where do you keep it? Cryptocurrencies are kept in (digital) wallets that not only store your crypto, but allow you to send and receive the crypto from there too.

There are several types of wallets, each with slightly different functionalities so it’s best to do your research and ensure that you select the best wallet for your needs, here are two main types of wallets:

  • Hot wallets: connected to the internet, e.g. online wallet
  • Cold wallets: kept offline, e.g. paper wallets

Each wallet has a public and private key. Essentially the public key allows you to receive crypto while the private key allows you to send crypto. It’s very important to never share your private key with anyone, as then they will have access to your cryptocurrencies.

6. Security

The cryptocurrency and blockchain world might feel a little insecure when you’re new to it. Rest assured that this technology is some of the most secure in the world, however it’s still important to remain conscious of your personal security measures.

First and foremost, never share your private keys with anyone. The saying “not your keys, not your coins” remains true. Next, always ensure that you are using reputable platforms to conduct your buying, selling and trading.

At Oobit, we’ve partnered with a top crypto security company that offers revolutionary air-gapped vaults that ensure your cryptocurrencies are stored in a military-grade wallet. These types of security solutions are pertinent to the safe keeping of your digital assets.

7. Oobit’s guide on how to pass KYC

Next on the agenda of our cryptocurrency market map is KYC. This stands for Know Your Customer and refers to an identity verification process you need to take in order to buy, trade and sell cryptocurrencies on reputable platforms.

Usually this process will ask for your phone number, email address, name, date of birth, and an identity document to verify this information. Deeper levels of KYC might ask for your address and a utility bill to verify. Each platform is different, but generally deeper levels of KYC allow you to work with larger amounts of crypto.

8. Learn More

Our cryptocurrency market map is designed to offer a basic introduction to cryptocurrency. If you’re fired up and want to learn more, we’ve got some more resources for you to sink your teeth into:

6 Tips you should know before buying bitcoin online

How do different transactions work?

6 Most important cryptocurrencies other than Bitcoin

You can also browse through our blog to find more information, tips and inside scoops.

9. About Oobit

This fully functioning crypto service was created in 2017 by Amran Adar and Aharon Miller. Their main goal was to create a platform that allows people to use crypto with the same ease as traditional money, in one simple, secure and convenient package. Here are some of the services that you can tap into at Oobit:

  • Instantly buy Bitcoin and other cryptocurrencies
  • Spend, transfer, withdraw and manage crypto in one secure wallet
  • Access to 150 cryptocurrencies and exchange on the best rates
  • 100% secure online wallet service by military-grade physical protection
  • Oobit Cards which allow you to cash out your cryptocurrency or pay at over 40 million stores worldwide.