On this page you find the best cryptocurrency and crypto token coupons that are currently available on the market. Bookmark this site to never miss the best deals to save money with various cryptocurrency service providers.
Crypto coupons are mostly offered by companies in the following fields:
- Online Purchases
- Debit Cards
What is a cryptocurrency?
The functionality of a cryptocurrency can be defined in a simplified way: Cryptocurrencies are digital systems that enable virtual values to be traded within a decentralized network. The so-called tokens – i.e. the individual value units, comparable to a dollar or a euro – are traded in a payment network in which there are accounts, balances and transactions.
From an idea point of view, this is comparable to classic payment systems. The challenge for a decentralized system with a digital currency is to avoid so-called double spending: It must be prevented that an amount is debited from one account several times. In a centralized system such as a bank, there is a verifier that constantly logs the balances and thus ensures that an amount transferred from account A to account B is deleted from account A.
For a decentralized system this task is more complicated. This is because the control task must be distributed to each individual unit of the network. Each participant in the network must have a list of all transactions in order to check whether a transaction is valid or if there are attempts to transfer amounts several times.
This problem was found by Satoshi Nakamoto, the inventor of Bitcoin. He relied on the idea of the block chain: each individual unit carries its history of origin and each additional transaction as a history. Not only that: each transaction is communicated to all units in the entire network.
Thereupon there is feedback: If the majority of the recipients of the message confirm the transaction as correct, it is considered confirmed and valid. Decentrally distributed knowledge about all transactions makes it impossible for individual Bitcoins to act multiple times. The comparatively high effort compared to a centralized system also has an advantage: the value of the digital currency is derived solely from supply and demand. There is no central bank that manages the money supply politically and no central control.
Who invented the first cryptocurrency?
The first cryptocurrency, and to this day the best known crypto currency worldwide, is Bitcoin. The inventor of the currency is known only under his pseudonym Satoshi Nakamoto. Although there are always speculations and supposed revelations about who is hiding behind this pseudonym. But whether one of them corresponds to the truth is still unclear.
In October 2008, Nakamoto published the Bitcoin White Paper and in January 2009, the first version of the reference implementation Bitcoin Core, which is based on blockchain technology. Although Satoshi Nakamoto is the inventor of Bitcoin, he was not the first to come up with the idea of inventing a digital currency based on cryptography. Already in 1998, Nick Szabo published the system for a purely digital currency and called his definition “bit gold”.
How is a cryptocurrency traded?
Trading cryptocurrencies works exclusively over the Internet. To trade currencies like Bitcoin or Ether, you need a Wallet. This is a kind of digital wallet. Digital currencies are traded via so-called Cryptocoin exchanges. This works similar to stock exchange trading. Supply and demand determine the exchange rates. Depending on the exchange, different cryptocurrencies or just one of the available cryptocurrencies are traded there.
It is worthwhile to compare the offers well with each other. The best-known Bitcoin exchanges for example are Plus500, Robinhood, etoro, and FXOpen. Trading is relatively uncomplicated. Registration is easy, and registration often takes only a few minutes.
What are the best wallets for cryptocurrencies?
The first step to trading crypto currencies is to choose a wallet. This is a kind of digital wallet. It is used to manage the digital tokens – the respective pieces of a digital currency. There are a number of providers on the Internet who offer the appropriate wallet for different crypto currencies.
Wallets are available as hardware in the form of external data storage devices or as browser-based versions. They are anonymous and encrypted. There is a public key for each wallet, which provides a kind of recipient address for the digital wallet as information. And there is an access key that gives the owner access to his wallet. The best known hardware wallets are Ledger Nano S and Trezor. The digital currencies are stored here on particularly well encrypted USB sticks. The best-known browser solutions are BitGo for a number of crypto currencies – including Bitcoin, of course – and MyEtherWallet, explicitly for the digital currency Ether. The best-known mobile and desktop wallets are Exodus, Guarda, Blockchain.com, Lumi and Jaxx.
Which cryptocurrencies are there?
The best known and most traded crypto currencies are Bitcoin, Ether (based on the Ethereum system), XRP (also known as Ripple, programmed as an open source protocol for payment networks) and Tether. The special feature of Tether is that the value of each token is linked to the value of the US dollar. Thus, pricing is not determined by supply and demand.
Already the example of Tether makes clear: There are different types of crypto currencies. A brief overview makes the differences clear: So-called ICOs (Initial Coin Offering), ITS (Initial Token Sale) and Token Generation Event (TGE) were invented as a means of financing entrepreneurial ventures. ICOs use block chain technology to generate so-called tokens as digital units that are sold to investors.
The technical and legal design varies greatly from case to case. However, a basic distinction is made between three categories: Security tokens, utility tokens and currency tokens: With this type of token, the issuer promises a company share, interest or another type of payment or profit sharing.
Utility Token is a kind of tool within the block chain. In concrete terms, this means that a Utility Token can have a specific function, for example to pay transaction fees or to gain access to the system or services (Utility Token = medium of exchange). In addition, the utility token can also be associated with voting rights.
Currency tokens are also called crypto-currencies. An essential feature of these tokens is their use as a means of payment. The best known examples of coins that are legally treated as currency tokens are Bitcoin, Ether and Ripple. For beginners, it is recommended to concentrate on these three very well-known digital currencies first. But the crypto-universe is much larger. There are now more than 850 crypto currencies on the market. If you are interested in the lesser known currencies, you should know that the less this currency is traded, the riskier the trade with a digital currency is. This is because the more the prices for buying and selling the tokens or coins fluctuate.
What is Cryptocurrency Mining?
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The term Mining originates from the mining industry. This suggests that software can be used to create new tokens of a crypto currency. This is only half right. The process of “mining” is a bit more complicated and I can explain it best with the example of Bitcoin: The system is based on a block chain. The individual blocks contain the lists of all transactions that have been made. When a block is full, it must be completed and “sealed”. In order for the system to work, the information in a block is combined to form a single code, a complex combination of characters. As a result, the block requires less memory space. This code is called a hash. The list of these successive hashes is a block chain. So-called “miners” calculate these hashes and are rewarded by the system with new bitcoins. In this way, new Bitcoins are gradually added to the system.
In the case of the crypto currency Bitcoin, there is a special feature: Its inventor Satoshi Nakamoto has ensured that the arithmetic operations become increasingly complex as the number of Bitcoins increases. As a result, the computational effort becomes higher, electricity costs rise, it takes longer – and at some point it will no longer be possible to create new Bitcoins at all. The maximum number of Bitcoins is limited to just under 21 million.