Economics

Cryptocurrency

Whoever you see today is running after Cryptocurrencies. In a very short time, Cryptocurrency has made its hold in the financial market. Cryptocurrency can also be called digital money due to being available only online.

Official currencies of different countries are controlled by their governments, but the government has no hand over cryptocurrencies because they are Decentralized Currencies. Its price cannot be regulated by any agency or government.

What is Cryptocurrency?

Cryptocurrency is also called digital currency. It is a kind of Digital Asset that is used for the purchase of things or services. Cryptography is used in these currencies.

This is a Peer Peer Electronic System, which we can use to purchase Goods and Services in place of regular currencies through the Internet.

The first cryptocurrency was Bitcoin. Today more than 1000 Cryptocurrency are present in the whole world.

How to Invest in Cryptocurrencies?

To invest in Cryptocurrencies, you have to choose the right investing or trading platform. Because if the right platform is not chosen then you may have to pay extra fees while trading. The top 10 platforms for this are as follows –
1. Coinbase
2. Voyager
3. BlockFi
4. Uphold
5. Kraken
6. eToro
7. Bitcoin IRA
8. Crypto.com
9. Binance
10. Hodlnaut

How to Create a Secured Account?

After selecting a crypto exchange, a fully secured account should be opened on it with the help of your bank account (from which the transaction is to be done). The necessary information for this is given on the exchange. It is like opening a bank account in which many documents have to be submitted online and your account gets opened. You should have accurate and complete information about depositing money as well as withdrawing money in a crypto account.

Which Cryptocurrency To Invest In?

Once the account is opened, the correct digital currency has to be identified. One can easily invest in currencies like Bitcoin, Ethereum, Cardano, Binance Coin, Tether, XRP. Experts advise that investors should invest in value currency. Here the volatility is low and your investment is considered more secure. At present, there are more than 5000 digital currencies in the whole world.

Types of Cryptocurrencies

At this time there is a flood of cryptocurrencies in the market. Some of these well-performing currencies are as follows –

1. Bitcoin (BTC)

Bitcoin is the first cryptocurrency in the world. Which was created by Satoshi Nakamoto in 2009. It is a digital currency that 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)

It is the second most famous cryptocurrency after Ethereum, Bitcoin. 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).

3. Litecoin (LTC)

Litecoin, also a decentralized peer-to-peer cryptocurrency, was created under the MIT/X11 license in October 2011 by Charles Lee, a former Google Employee. Bitcoin has a big hand behind its creation and many of its features are dangling from Bitcoin. Litecoin’s block generation time is 4 times less than that of Bitcoin. Therefore, the transactions in this are completed very quickly. Scrypt algorithm is used for mining in this.

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.

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.

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. Its starting price in 2017 was just $0.10 which increased by 5200% by 3rd January 2022. According to Coinmarketcap.com on January 17th, Binance (BNB) ranks fourth with a market cap of approximately $80 billion.

7. Solana (SOL)

Lately, Solana has been facing a downtrend, but Crypto ranks third on this list due to its hugely successful achievement in 2021. SOL has proven itself to be one of the fastest-growing cryptocurrencies in the market.

8. Ripple (XRP)

Ripple was released in 2012 and it is based on distributed open-source protocol, Ripple is a real-time gross settlement system (RTGS) that runs its own Cryptocurrency which is also known as Ripples (XRP).

It is very much and famous Cryptocurrency and has an overall market cap of around $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.

What are the Advantages of CryptoCurrency?

Now let’s know about the benefits of some Cryptocurrencies:-

  1. The chances of fraud in cryptocurrency are very less.
  2. If we talk about Cryptocurrency, then they are more secure than a normal digital payment.
  3. Compared to other payment options, transaction fees are very high in this.
  4. Accounts are very secure in this because different types of Cryptography Algorithm are used in it.

What are the Disadvantages of Cryptocurrency?

Now let’s know about the disadvantages of some Cryptocurrencies:-

  1. In cryptocurrency, once the transaction is completed, it is impossible to reverse it because there are no such options in it.
  2. If your Wallet ID is lost then it is lost forever as it is not possible to recover it. In such a situation, whatever money you have in your wallet is lost forever.

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