Today whoever you see is running after Cryptocurrencies. In a very short time, Cryptocurrency has shown its strong power in the financial market. Cryptocurrency can also be called digital money because it is available only online and we cannot physically transact it.
Other currencies such as Rupees in India, Dollar in USA, Euro in Europe, etc. are implemented and used by governments in the whole country, in the same way these currencies are also used in the whole world. But the thing to understand here is that the government does not have any hand over these Cryptocurrencies because they are Decentralized Currency, so no agency or government or any board has authority over them, due to which its value cannot be regulated.
What is cryptocurrency?
Cryptocurrency is also called digital currency. It is a type of Digital Asset which is used for the purchase of goods or services. Cryptography is used in these currencies.
This is a Peer to Peer Electronic System which we can use through the Internet to purchase Goods and Services in place of regular currencies. In this system, the government can work without informing the banks, so some people believe that cryptocurrency can be used in a wrong way.
If we do Cryptocurrency first, then it will be Bitcoin which was first brought in the world for these works. If we see today, there are more than 1000 Cryptocurrency in the whole world, but only a few of them are more important, about which we will know later.
Cryptography is used to create cryptocurrency.
If we talk about all cryptocurrencies, the first one to become famous among them is Bitcoin. It was made first of all and it is also used the most. There were many controversies regarding Bitcoin, but today Bitcoin is at the top of Cryptocurrencies.
Here I am going to tell you about some other Cryptocurrencies about which you probably already know.
How to invest in Cryptocurrencies?
To invest in Cryptocurrencies, you have to choose the right platform. Because if the right platform is not chosen then you may have to pay more fees while trading.
Investing and trading in it is very easy and its founder is also an Indian. I have also invested in it and have done so for many years. If you want to, you can invest your money in it.
Types of Cryptocurrencies
If seen, there are many Cryptocurrencies but only a few of them are performing well and which you can use apart from Bitcoin.
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Dogecoin (Doge)
- Tether (USDT)
- Binance Coin (BNB)
- Solana (SOL)
- Ripple (XRP)
Bitcoin:- If we talk about Cryptocurrency and there is no talk of Bitcoin then it is not possible at all. Because bitcoin is the first cryptocurrency from the world. Which was created by Satoshi Nakamoto in 2009.
This is a digital currency which is used only online to buy goods and services. It is a De-centralized currency which means that the Government or any institution has no hand over it.
If we talk about today, then its value has increased a lot, which is now around 13 Lakhs, the value of a coin. From this you can find out about its present importance.
Ethereum:- Like Bitcoin, Ethereum is also an open-source, decentralized blockchain-based computing platform. The name of its founder is Vitalik Buterin. Its Cryptocurrency token is also called ‘Ether’.
This platform helps its users to create a digital token, with the help of which it can be used as a currency. Recently, due to a Hard Fork, Ethereum has been divided into two parts, Ethereum (ETH) and Etherim Classic (ETC). It is the second most famous cryptocurrency after bitcoin.
Litecoin:- Litecoin is also a decentralized peer-to-peer cryptocurrency, which is an open source software released under the MIT/X11 license in October, 2011 by Charles Lee, who has previously been a Google Employee.
Bitcoin has a big hand behind its creation and many of its features are similar to Bitcoin. Litecoin’s block generation time is 4 times less than that of Bitcoin. That’s why transactions are completed very quickly. Scrypt algorithm is used in this to do mining.
Dogecoin:- The story of the formation of Dogecoin is quite interesting. It was compared to a dog to make fun of Bitcoin, which later took the form of a Cryptocurrency. Its founder’s name is Billy Markus. Like Litecoin, Scrypt Algorithm is also used in this.
Today Dogecoin’s market value is more than $197 million and it is accepted by more than 200 merchants all over the world. In this also mining is very quick as compared to others.
Tether:- According to Coinmarketcap, Tether is the largest stablecoin with a market cap of $78 billion as of January 17.
It uses the blockchain technology of Bitcoin. Stablecoins have reduced volatility pegged to the US dollar and euro, and are one of the most popular options for those looking to invest in cryptocurrencies but reluctant to encounter volatility.
Binance Coin:- This cryptocurrency is the native cryptocurrency of the Binance crypto exchange, which is the world’s largest exchange by volume.
Binance was only launched in 2017 but has expanded very quickly by facilitating trading on its platform. The crypto has come a long way from its price in 2017 which was just $0.10 to 5200% on 3rd January 2022 to 5200%.
According to Coinmarketcap on January 17, Binance (BNB) ranks fourth with a market cap of around $80 billion.
Solana:- Recently, Solana has been facing a downtrend, but crypto is on the third spot in this list because of its extremely successful 2021. SOL has proven itself to be one of the fastest growing cryptos in the market. Furthermore, there can be no disagreement that SOL is the biggest competitor to Ethereum. SOL token has reportedly gained 13,662% in 2021.
Ripple:- Ripple was released in 2012 and it is based on distributed open source protocol, Ripple is a real-time gross settlement system (RTGS) which runs its own cryptocurrency which is also called Ripples (XRP).
This is a very famous Cryptocurrency and whose overall market cap is about $ 10 billion. According to their officials, Ripple provides users with “secure, instant and nearly free global financial transactions of any size and without any chargebacks”.
Polygon:- This year’s prospects can be considered quite good. And experts believe that the credit goes to Ethereum. Crypto is all set to transition to version ETH 2.0, which relies heavily on layer-2 solutions like Polygon. It could also indicate that Polygon has the edge to experience an increase in value, and is a good option to buy and hold.
Advantages of CryptoCurrency
Now let’s know about the benefits of some CryptoCurrency
- The chances of fraud in cryptocurrency are very less.
- If we talk about cryptocurrency, then it is more secure than normal digital payment.
- Transaction fees are also very less in this, if we talk about other payment options then.
- Accounts are very secure in this because different types of Cryptography Algorithm are used in it.
Disadvantages of Cryptocurrency
Now let’s know about the disadvantages of some CryptoCurrency
- Once the transaction is completed in cryptocurrency, it is impossible to reverse it because there are no options in it.
- If your Wallet ID is lost then it is lost forever because it is not possible to get it again. In such a situation whatever money you have in your wallet is lost forever.
I have full hope that I have given you complete information about what cryptocurrency is and I hope that you have understood about cryptocurrency.