Crypto Basics: Benefits & Types of Cryptocurrency

Cryptocurrency is a digital currency that can be use to exchange with goods and services and the ownership records are stored in an online computerized database ledger secured with strong cryptocurrency to secure the transaction records. There are more than 7500 crypto currencies exists. You can also call these digital currencies as these do not exist on paper but only in online ledger. The value of the crypto is unstable and changes from time to time. So many people invest in crypto to make instant maximum profit in short or long time period.

Formation of Cryptocurrency

The very first Cryptocurrency is Bitcoin which is very much popular even today and listed on top with price value. As from the information from news called Satoshi Nakamoto a peer to peer electronic currency system. He started writing the code of bitcoin in 2007.It was posted by someone called themselves Satoshi Nakamoto, whose real identity is still a mystery till today.

Types of Cryptocurrency

cryptocurrency basics

Bitcoin is considered as the first cryptocurrency and other are known as altcoin (alternative coin). It’s difficult to know best coin for trading, Bitcoin and some of the largest altcoins are famous because of there best blockchain transaction, security, privacy, and availability of functionality they provide. Every cryptocurrency have its features based on their developer who designed it to make it best coin in cryptocurrency.

Ethereum is a type of cryptocurrency that is an open source platform based on blockchain technology of digital currency transactions, Ethereum blockchain also having features like programming code of any decentralized application which allows developers to it and pay for the transactions fees over Ethereum network.

There are some popular coins also which can be mined more than bitcoin like litecoin (LTC) by 84 million.

Top 20 Cryptocurrency

Here are top-rated Cryptocurrency List worldwide in which more than 60k million people investing their money in 2021. If you’d love to Know more about Crypto Basics here, you are welcome!

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Bitcoin cash (BCH)
  4. Tether
  5. Solana
  6. Cardano
  7. USD Coin
  8. XRP
  9. Polkadot
  10. Avalanche
  11. Dogecoin
  12. Terra
  13. SHIBA INU
  14. Crypto.com Coin
  15. Binance USD
  16. Polygon
  17. Wrapped Bitcoin
  18. Litecoin
  19. Uniswap
  20. Algorand

Ups and Downs in Crypto Market

cryptocurrency basics - bitcoin

As stock market prices goes up and down day to day during its fixed time period, Crypto runs every second and prices also deflects second to second. No one can track it that it will go up or down. One of the major fact caught when cryptocurrency was banned in China and the crypto market crashed instantly in May 2021. After 3 months investment raised and market showed it’s peak value first time ever in cryptocurrency history hitting bitcoin 50 lakh.

In 2021, Its sounds cool to invest in Cryptocurrency not to put money in a bored bank or old fashioned “Fixed Funds”. It is more important to watch and follow the old records of some trending and highly gained Alt Coins in which you are interested to invest.

Benefits of Cryptocurrency

cryptocurrency basics - mining

Cryptocurrency Privacy

Cryptocurrency holders can sell out when they want without taking any risk from outsider while transaction. Only it can possible when someone reaches physically user’s pc and access their wallet or account. A lot more authentication requires to steal which is almost very hard to do it.

User Friendly

One of the best benefit is we can transfer crypto to anyone everywhere. Their is no limitation regarding doing transaction country to country. No exchange fees or tax charged and can also be easily sold at any moment.

Governments Forms in Crypto

Cryptocurrency is a decentralized currency, Which is not maintained or controlled by any government or any bank for your crypto records. There is a way that taxation would be implemented for cryptocurrency on large scale. From this, cryptocurrency users view this as one of the main advantages of cryptocurrency to purchase or hold it for the short and long term.

Future

It may possible in future that all transaction for purchasing anything will depend on Cryptocurrency because it will equal in all Countries and can be expected in digitally and without any error form. Theft, loss or error in bank transactions reasons of money will permanently vanished from complaints registers.

Risk Trouble in Cryptocurrency

cryptocurrency basics

When Bitcoin was created by Satoshi Nakamoto and as said its limit up to 21 million bitcoins only. This factor makes Bitcoin or cryptocurrency more valuable, but it now also ensures the value depends on the demand.

There are also other factors that prices may go down such as government action to revenue it under tax on crypto, or any bad investor or huge crypto holder make statement about it and their may we see down fall in market.

On, 30 Nov 2021 Indian government Regulates a bill in Rajya Sabha to control it and to ban private cryptocurrency in India but still we are waiting for cryptocurrency bill 2021 to come out for the Public Domain. This particular decision had made confusion in investors and holders to decide for digital currency to invest more or to leave it.

Cryptocurrency leading in wrong hands like terrorism. This is the most risky factor that I will considered in cryptocurrency market such as illegal weapons smuggling, giving crypto as currency for killing purposes, and many other such like this very harmful for humanity. At last it all depends on person to person which he/she is using crypto for good and services.

Why We Should Invest in Cryptocurrency?

Before investing in Cryptocurrency make sure that the money that you are going to invest, After investing may not give you the same value for the short time or long term. Besides this as you can compares the value of Bitcoin value in 2009 and 2021, Unbelievable and surprising we values we can see today. As per my opinion if you want to take chance go through it have some coins shares and forget it for the long term until you get it double or triple from it. As compared to stock markets it will give you maximum higher returns as prices compared in the first 10 years of Cryptocurrency.

How Cryptocurrency Created and Priced?

cryptocurrency basics - bitcoin mining

Mining: Cryptocurrency are mined. For a better understanding of how cryptocurrencies are created or generated, we can refer to Bitcoin and Ethereum, which are created by the process of mining. The Mining process involves massive amounts of powerful computer hardware like ASIC machines and graphic cards.

Mining is the process by which cryptocurrency transactions are verified and new units of cryptocurrency are created. Whenever you send coin (in electronic form-we may say information) to anyone it decrypted by and has been accepted by most of the nodes on the blockchain as being authentic, the block is added to the blockchain.

Leave a Comment