Don’t you wish that you’d invested in Bitcoin sooner? It now trades at more than $17,000 per coin! If you did jump on that blockchain wagon sooner, you could be a billionaire!
Do you want to be on the next Bitcoin and buy into the hottest blockchain technologies? You’re not the only one. Entrepreneurs and big businesses want in on the hottest new technologies, too.
But what is blockchain vs cryptocurrency anyways?
Don’t bother trying to work out blockchain vs cryptocurrency for yourself. Instead, read on for a full explanation of the differences for you.
What is Cryptocurrency?
Cryptocurrencies such as Bitcoin and Ethereum were the first applications of blockchain technology. This is where most of the confusion comes from, and the reason that a lot of people consider crypto and blockchain to be synonymous.
So, that begs the question what exactly is cryptocurrency? It is a digital currency that works with a digital store of value to buy and sell goods and services.
This is revolutionary for many reasons, but most importantly it is not controlled by any government or centralized authority.
What is Blockchain?
Blockchain is the technology that makes cryptocurrency possible. It is essentially distributed ledgers protected by cryptography the art of writing or solving codes. The name cryptocurrency is starting to make sense, right?
Blockchains are databases that are available to the public at any time. Anyone can view or add to them. Thousands of computers across the world have a copy of this database and transactions are located in data-holding “blocks.”
A blockchain, therefore, is the consecutive string of every block ever executed — all of the transactions in order.
So, What’s the Difference?
Ultimately, blockchain is a technology that allows data to be saved on decentralized networks. Cryptocurrency is a digital currency that works by using blockchain technology.
Blockchain can be used for many other applications, not just cryptocurrency. While cryptocurrency serves one basic function — as digital money. For example, supply chain blockchain is used for the digital transformation of the space, aerospace & defense, automotive, and medical manufacturing industries.
Another big difference between the two is transparency. Blockchain is public, meaning anyone can view the information and add to it. On the other hand, crypto is so popular because of its anonymity.
The public can view where the transaction came from and where it’s going due to the blockchain network. However, there is no way of telling who is behind the transaction.
Cryptocurrency Tips for Investing
Do you want to get involved in investing in crypto but you’re just not sure where to start? Here are a few quick tips to get you going:
- Educate yourself thoroughly on crypto — you need to understand your investment
- Prepare for volatility — crypto has seen huge losses and huge gains
- Use spare capital to invest due to the volatility
- Find reputable news sources to get information
- Invest in other cryptos instead of only Bitcoin
Most importantly, know what you’re investing in. You now know the difference between blockchain and crypto. However, before you invest, you should know the ins and outs of cryptocurrency.
What is Blockchain vs Cryptocurrency Explained
So, what is blockchain vs cryptocurrency? Hopefully, this brief cryptocurrency and blockchain guide has answered your question. These terms are not synonymous, despite what many think. If you enjoyed this article, then you’ll love the rest of our informative content. We’ll keep you up-to-date with the latest tech trends — keep exploring our site for more!