If you are a beginner in the crypto industry and want to know how crypto works? and why you should invest in cryptocurrency? So many questions must be running in your mind before investing or trading in the Cryptocurrency marketplace. No need to worry once you are here, in this post we will help you find the best possible answer to your crypto-related questions, let’s start from the beginning:
What is Cryptocurrency(Crypto)?
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Cryptocurrency is a type of virtual currency that means you cannot hold it in hand like notes or coins have no physical presence, they are digital assets. And they are protected by cryptography. Each crypto is created with a unique program code that makes it nearly impossible to copy or spoof the same cryptocurrency. Cryptocurrencies are not regulated by any central authority means the government or let’s say the Reserve Bank. It is completely decentralized and its creation, investment, the transaction takes place on the Internet itself.
Cryptocurrency is decentralized digital money established on blockchain technology. There are thousands of different types of cryptocurrencies available but the most popular versions are Bitcoin and Ethereum in the market.
Types of Cryptocurrency
If seen, there are many Cryptocurrencies are available in this digital world but there are only a few of them which are functioning well and which you can use apart from Bitcoin. Here we have shared some of the best and most valuable Types of Cryptocurrency:
1. Bitcoin (BTC)
If we talk about Cryptocurrency and not talk about Bitcoin then it is not possible. Because Bitcoin is one of the first cryptocurrencies in the world. Which was created by Satoshi Nakamoto in 2009. This digital currency is used to buy goods and services online only. It is a decentralized currency which means that there is no hand of government or any institution on it.
2.Ethereum (ETH)
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 currency. Recently a hard fork has split Ethereum into two halves, Ethereum (ETH) and Ethereum Classic (ETC). Ethereum is the second most famous cryptocurrency after Bitcoin.
3. Litecoin (LTC)
Litecoin is also a decentralized peer-to-peer cryptocurrency which is open-source software released under the MIT/X11 license in October 2011 by Charles Lee who was previously a Google Employee.
4. Dogecoin (Doge)
The story of the formation of Dogecoin is quite interesting. It was compared to a dog to mock Bitcoin, which later took the form of a cryptocurrency. The name of its founder is Billy Markus. Like Litecoin, Scrypt Algorithm is also used in this. Today the market value of Dogecoin is more than $197 million and it is accepted in more than 200 merchants all over the world. Mining in this also happens very quickly as compared to others.
5. Tether (USDT)
According to coinmarketcap.com, Tether is the largest stable coin with a market cap of $78 billion as of January 17th. It uses the blockchain technology of Bitcoin. Stablecoins reduce volatility pegged to the US dollar and euro, and are one of the most popular options for those looking to invest in cryptocurrencies but are reluctant to face volatility.
6. Binance Coin (BNB)
This cryptocurrency is the parent cryptocurrency of the Binance crypto exchange, the world’s largest exchange by volume. Binance was only launched in 2017 but expanded very rapidly by facilitating trading on its platform.
7. Polygon
The prospects of this year can be considered very good. And experts believe the credit goes to Ethereum. The crypto is all set to transition to the ETH 2.0 version, which relies heavily on layer-2 solutions like Polygon. It may also indicate that the polygon has an edge to experience an increase in price, and is a good option to buy and hold.
Which One Is the Most Popular Cryptocurrency?
Currently, the world’s most valuable and most popular cryptocurrency is bitcoin. After this, if we talk about the second favorite cryptocurrency, then the name comes to Ethereum. On the other hand, talking about the top 10 digital currencies, these include Polkadot, Tether, Litecoin, Dogecoin, and others. Initially, bitcoin dominated the crypto market, but over time this market grew and thousands of digital currencies came into play. Today the scope of business of crypto has spread almost to most of the countries of the world.
How Can Buy Crypto-Currency?
There are two methods to buy cryptocurrency, but today the easiest and most popular method is to buy them through a crypto exchange. There are hundreds of crypto-currency exchanges operating around the globe. If we talk about India, there are many exchanges operating here including WazirX, Zebpay, CoinSwitch Kuber, Coin DCX Go. In addition, there are international platforms such as Coinbase and Binance, where digital currencies from around the world can be purchased, including bitcoin, Ethereum, tether, and dogecoin.
The Future of Cryptocurrency
The world of Cryptocurrency today has become more common than in the last few years. Cryptocurrencies have become a popular investment instrument among investors today, going through a phase of doubt, fear and uncertainty. Even acceptance has increased among large companies regarding these and cryptocurrency is being accepted in the alternative mode of payment. However, despite all this, cryptocurrency is still a digital asset prone to high volatility. In such a situation, before investing in this market, there are some things that you should know and for which you should prepare yourself.
It is often said about the cryptocurrency market that ‘no one knows anything about it.’ However, there are still a lot of market analysts, trend experts and social media influencers in the market, who will give you strategies and tips on the crypto market. But it is important for you not to trust everyone’s opinion, look at your research and make a strategy keeping in mind your personal finance.
What Benefits of Using Cryptocurrency?
- The possibilities of fraud in cryptocurrency are very minor.
- If we talk about Cryptocurrency, then they are more secure than a normal digital payment process.
- In Cryptocurrency, the transaction fees are also very less than other payment options.
- Accounts are very secure in this because additional types of Cryptography Algorithm and technology are used in it.