Uncovering Basics about Cryptocurrency
Snapshot
- What is Cryptocurrency?
- Types of Cryptocurrency
- Cryptocurrency in simple words
- How can one buy Cryptocurrency?
- What’s the Point of Cryptocurrency?
- How Money is Made through Cryptocurrency?
- Some most popular Cryptocurrency
Cryptocurrencies are “virtual or digital” currencies. Cryptography is used to secure Cryptocurrencies, making it impossible to double-spend or fake them. One of the most defining features of Cryptocurrencies is that it is not issued by a central authority, as is the case with other currencies around the world, thus, theoretically making them completely immune to government manipulation or interference. Most of the Cryptocurrencies are based on blockchain technology and are decentralized.
What is Cryptocurrency?
They can be defined as systems, which allow secure online payments. They are denominated as “tokens”, and are represented through ledger entries within the system. The term “crypto” refers to the techniques safeguarding these entries by implying public-private key pairs, encryption, and hashing functions.
Types of Cryptocurrency
Bitcoin was the first blockchain-based Cryptocurrency. Today there are thousands of cryptocurrencies in the market with various functions and specifications. Some of these Cryptocurrency were built from scratch, while some are forks of Bitcoin.
Bitcoin was developed in 2009 by the pseudonym “Satoshi Nakamoto”. As of December 2021, 18.9 million Bitcoins are in circulation, having a total market cap of around $905 billion. 2.1 million Bitcoins are left to be mined, as only 21 million Bitcoins will ever exist, preventing any inflation or manipulation.
After the success of Bitcoin, many Cryptocurrencies were produced to compete with Bitcoin, known as “altcoins”, some such famous altcoins include Ethereum, Cardano, Litecoin, and Eos. As of 17th December 2021, the total value of all Cryptocurrencies is $2.2 trillion.
Cryptocurrency in simple words
In simple words, Cryptocurrencies are systems allowing secure digital payments and are denominated as virtual “tokens”.
How can one buy Cryptocurrency?
If an investor wishes to invest in Cryptocurrency, he can buy it from online crypto exchanges like Bitdenex, Coinbase, and many more.
What’s the Point of Cryptocurrency?
In the eyes of many experts, blockchain technology has serious potential for uses like voting, crowd-funding, and lowering transaction costs by streamlining payment processing.
How Money is Made through Cryptocurrency?
Investors can make money in Cryptocurrency by either mining or by simply trading their Cryptocurrency for profit.
Some most popular Cryptocurrency
The most popular and the most valuable Cryptocurrency by far is Bitcoin, followed by other Cryptocurrencies such as Ethereum, Binance Coin, Cardano, Solana, and a few more. Nowadays certain meme coins have also started to gain popularity, developed as a joke, they have no substantial use. Meme coins such as Dogecoin, Shiba Inu, and a few more have seen a huge rise in their popularity.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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