Here's our quick get-started guide to learning the basics of the cryptocurrencies now offered on the tastytrade platform.

BITCOIN (BTC)

Introduced in 2009

Created by Satoshi Nakamoto

The world’s first successful cryptocurrency. Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. There is a finite supply, only 21 million bitcoins can be produced. The Bitcoin blockchain is a full record of the network’s history validated by individuals running the Bitcoin software (nodes). This ensures that unlike most digital data, which can be freely copied and modified, bitcoins cannot be. Because bitcoins are scarce, divisible and transferable, bitcoins are used as money. 

BITCOIN CASH (BCH)

Established by miners in 2017

Bitcoin Cash was started by bitcoin miners and developers concerned with the future of the cryptocurrency and its ability to scale effectively. In August 2017, some miners and developers initiated what is known as a hard fork, effectively creating a new currency: BCH. BCH has its own blockchain and specifications, including one very important distinction from bitcoin. BCH has implemented an increased block size to accelerate the verification process, with an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it. Bitcoin Cash is thus able to process transactions faster than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower.

ETHEREUM (ETH)

Launched in 2015. Created by Vitalik Buterin

The decentralized Ethereum network makes it possible to create and run applications, smart contracts and other transactions on the network. Ethereum is different from Bitcoin in that the network can perform computations as part of the mining process. You can use Ether as a digital currency in financial transactions, as an investment, or as a store of value. Ethereum is the blockchain network on which Ether is held and exchanged. Perhaps one of the most intriguing use cases involving Ether and Ethereum are self-executing contracts, or so-called smart contracts. Like any other contract, two parties make an agreement about the delivery of goods or services in the future. Unlike conventional contracts, lawyers aren’t necessary: The parties code the contract on the Ethereum blockchain, and once the conditions of the contract are met, it self-executes and delivers Ether to the appropriate party.

LITECOIN (LTC)

Introduced in 2011

Created by Charlie Lee

Litecoin can produce a greater number of coins than Bitcoin and its transaction speed is faster. Was intended to be a “light version of Bitcoin.” Litecoin distribution can accommodate 84 million coins compared to Bitcoin’s 21 million. Litecoin was founded with the goal of prioritizing transaction speed, and that has proven an advantage as it has grown in popularity. As of March 2021, the total value of all bitcoins in circulation is around $1 trillion, making its market cap more than 70 times larger than Litecoin, which has a total value of $13.7 billion.

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