It’s essential to do your research before investing in any market. Digital currencies have quickly risen to prominence in the portfolios of many retail and institutional investors. At the same time, analysts have continued to caution investors about their volatile nature and unpredictability. On the one hand, buying into a hot new currency before it explodes in popularity and value may prompt investors to move equally quickly. In actuality, though, you’re more likely to see success if you monitor the industry before making a move.

A blockchain is a distributed database shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. In other words, all digital currencies are created, stored, and exchanged on their separate blockchain networks –built using the foundational Blockchain protocol.