As cryptocurrencies gain global mainstream attraction, investors are always on the lookout for next Bitcoin or Ethereum. DigiByte is a blockchain that was created in 2013 and launched in 2014. Since then, DigiByte has manageed to stick around the top 100 cryptocurrencies by market cap. But, what makes DigiByte unique and is it still worth investing in 2022?
What is DigiByte (DGB)?
DigiByte is an ultra-fast and highly secured cryptocurrency that operates on a decentralized global blockchain network. In 2022, DigiByte may be considered by many to be a dinosaur coin, or an old-school altcoin that hasn't innovated much in recent years. DigiByte investments are highly speculative and most likely to result in lower returns than the top 5 altcoins in 2022.
Brief History of DigiByte
As Bitcoin and altcoins gained popularity in 2017, there was a serious debate among crypto-enthusiasts and traders alike that questioned the stability of these cryptocurrencies. In fact, some traders believed that Bitcoin and Ethereum weren’t fast, stable and secured enough, thus the need for other altcoins and advanced blockchain technology.
Jared Tate was one of the proponents of this argument for digital currency, and so it wasn’t surprising when in 2013 he created the DigiByte blockchain. The first DigiByte block was mined (verified and added to public record) in January 2014. Since then, DigiByte has amassed a large virtual community of traders who use it to carry out seamless and secured transactions daily. It is the quickest and most decentralized blockchain in the world.
Below are some of the most common terms describing DigiByte:
Altcoin: Meaning alternative coin, it refers to any other cryptocurrencies beside Bitcoin. This is because other cryptocurrencies were developed based on the first cryptocurrency, Bitcoin.
Stablecoin: This is a cryptocurrency backed by reserve assets and designed to scale down and stabilize the price of crypto trading.
Mining: This computational term describes the creation and transaction of new records on a blockchain network. Altcoin DigiByte uses 5 mining algorithms to make it more secure and prevent centralization.
Blockchain network: The power behind all cryptocurrency operations, this digital database records the transactions on decentralized networks.
Decentralized network: This refers to a blockchain network that allows users to create their personalized network. As opposed to a centralized one where all user actions are controlled by a single entity or authority.
Strictly speaking, a decentralized blockchain, unlike a centralized system, operates without a single administrator or central bank. DigiByte, like other decentralized cryptocurrencies, is independent of a centralized control, unlike the U.S dollar that is centralized and controlled by the U.S. central bank.
How to Buy DigiByte
You can buy DigiByte (DBG) on popular exchange platforms and over the counter. You should always use trusted and regulated platforms. Below is a step-by-step guide to help you buy DigiByte. Remember to check the DigiByte price before buying so you know what you’re getting for the money. Remember, transaction fees apply for all chain transactions.
- Open an online account.
Research and choose an exchange that offers altcoins like DigiByte. When you have identified one, create an online account. Look for popular exchanges as they are more liquid — transactions are quicker and closer to the market’s clearing price.
Consider these important points before opening an account with an exchange:
1. How reputable are they?
2. Have they been hacked before?
3. How reasonable are their fees and rates?
- Buy a wallet (optional).
Another option to purchase and store altcoins like DigiByte is to buy a wallet. A wallet is a software program where you can keep your coins. You do not need a specialized wallet to store your altcoins because most exchanges provide users with wallets, but they come with limited control. In other words, you are better off getting a hardware or a software wallet.
- Make your purchase.
After choosing an exchange and getting a wallet, the next step is to buy. Although you can purchase DigiByte from a significant number of exchange platforms, some altcoins cannot be bought with fiat currencies (USD). A way to go about this is to buy bitcoin with USD and swap it with your desired altcoin (in this case, DigiByte) in an exchange platform. After purchase, you can now move your coins to your wallet.
Best Crypto Exchanges for DGB
Best Crypto Wallets
Here are the best software and hardware wallets for DigiByte.
Best Hardware Wallet: Ledger Nano S
A hardware wallet is a physical device that helps you store your private keys just like a flash drive. One of the best hardware wallets you can get today is the Ledger Nano S.
Ledger Nano S supports many different coins like DigiByte, Bitcoin, Ethereum, Litecoin and a range of other cryptos and is one of the most popular hardware wallets. Ledger Nano S is unquestionably one of the most protected DigiByte wallets. It offers 2-factor authentication code support and stores your DigiByte wallet address securely using a PIN code.
Best Software Wallet
Unlike their hardware counterpart, software wallets are computer-based and available in 3 different formats: desktop, mobile and online.
Desktop wallets: A desktop wallet stores your currencies on your personal computer or your laptop. Traders mostly prefer a desktop wallet because it offers adequate control without relying on a 3rd-party interface. DigiByte core is a perfect example of a desktop wallet for storing DGB.
Mobile wallets: With a mobile wallet, you can access your digital assets through an app on your smartphone, iPad and other mobile devices. You should store limited amounts of currencies because a mobile wallet is a hot wallet — it stores information online, making it susceptible to fraud attacks. Guarda is a viable mobile wallet option to keep your DGB.
Online wallets: Online wallets are web-based wallets. You can access your online wallet from any location and device. Although online wallets give you great flexibility and convenience, these wallets are very vulnerable to attacks by hackers because they store your information online and are controlled by 3rdparties. DigiByte Go wallet is an online wallet allowing you the flexibility of storing your coins on the go.
Experts believe DigiByte will continue to increase in popularity. DigiByte founders are innovative and will continue to develop new exciting features.
How to Trade or Sell your Cryptocurrency
Trading cryptocurrency is buying and selling crypto assets for the sole purpose of making a profit. Traders aim to buy low and sell high. Traders sell assets mainly to take a profit. Selling is simply exchanging your crypto assets for money.
Among the most important questions you will deal with daily as a trader is when should you sell. However, there’s no hard-and-fast rule to determine when to sell, although experts advise to sell when prices rise much higher than the buy to lock in profits.
Although very popular, Bitcoin is not the only coin you can trade and make profit. In fact, more traders are catching on to the altcoins craze currently. If you are thinking of trading DigiByte, here are steps to guide you.
- Get a functional computer or mobile device with a stable network.
- Get a broker.
- Make a deposit.
- Decide your trading strategy.
There are two primary ways to trade cryptocurrencies: spread betting and contract for differences (CFD). Both methods seem similar on the surface, but they differ from each other.
Current Crypto Prices
Crypto prices are very volatile and rapidly changing. Here are the current prices for popular cryptocurrencies for today.
Is DigiByte a Good Investment?
DigiByte's tight security, speed and highly advanced algorithm gives it a massive potential to gain wider acceptance and make it a good investment and a likely better investment than Bitcoin. This is not financial advice — you still need to do your due diligence.
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