Cryptocurrency is a type of digital currency based on a network that is distributed across a large number of computers. The term cryptocurrency is gotten from the encryption techniques used to secure the network. Aside other assets, like real estate,stocks, and Gold etc you can also invest in cryptocurrency. The possibility of getting rich investing in crypto currency is quite high but you can also lose all of your money in a heartbeat. Investing in cryptocurrency is risky but can also be incredibly profitable when you understand what you are doing. People have grown from being financially broke to making 10 figures just by investing in some coins. Features of Cryptocurrency
AnonymityEvery transactions carried out on the blockchain wallet are tied to a random sequence of characters and not to the owner’s identity.
No intermediary or supervisory bodies Cryptocurrency is not regulated or supervised by anyone Lack of governmental control and restrictions, eliminate fees that could have been a drawback for users.
Security Digital currency is stored in special wallets and secured with a private key. This enables only the holder to have access to the accumulated funds.
No centralization There is no centralization of cryptocurrency meaning no authority controls cryptocurrency flow or quotations. Actual currency trading is not located in a single place.
Irreversible transactions Due to the lack of institutional supervision over the virtual currency market, transactions cannot be reversed. If an error occurs, for example, incorrect recipient details, there is no means of recovery.
Fast developmentOwners of cryptocurrency can use their cryptocurrencies through rapidly developing tools and services. The Convertion and exchange of cryptocurrencies into dollars, euros and other currency is now possible. These currencies are often funded directly from the cryptocurrency wallet through solutions that enable conversion and exchange. Cryptocurrency has been trailed with lots of criticism for several reasons, which is as a result of their use for illegal activities, the rate of exchange volatility, and the vulnerability of the infrastructure underlying them. Nevertheless, cryptocurrency has received lots of praise henced it’s widespread adoption
Types of CryptocurrencyThe first cryptocurrency ever created is Bitcoin, it remains the most popular and most precious of all cryptocurrencies. With the massive success of Bitcoin thousands of other alternate cryptocurrencies with various functions and specifications has been launched. Some of which are clones of Bitcoin, while the others are new currencies that were made from scratch. Take a look at seven of the most simplest cryptocurrencies to take a position in. Now Just as within the securities market, investors should wager only with money they’re willing to lose, as even the foremost blue-chip cryptos are often extremely volatile.
Bitcoin (BTC) Bitcoin is the first crypto currency ever made it has grown to become the dominant player in its field since its creation. both seasoned and institutional investors are advised to dip their toes into cryptocurrencies first with Bitcoin. Some of today’s smartest business minds are increasingly gravitating towards Bitcoin adaptation. Big Businesses like Amazon and PayPal integrating Bitcoin into their services. It is only a matter of your time before other companies imitate .
Bitcoin Cash (BCH) As the first cryptocurrency, Bitcoin was a canary within the coalpit for other digital currencies that might follow. One of the characteristic of Bitcoin that frustrated lots of users and developers was the tiny size of the blocks of knowledge on the Bitcoin blockchain, which is just 1 megabyte. This made transactions slow and caused an increase in the fees. A problem Bitcoin Cash came to eliminate when it was created. BCH was created adopting a block size of 8 MBs. This coin is not as stable, neither is it widely used as Bitcoin, but it has great potentials to scale. It is referred to as the 12th-most valuable cryptocurrency within the planet.
Ethereum (ETH) Ethereum is the next coin after Bitcoin and has been playing the second fiddle to Bitcoin for years now. It has a market cap of $276 billion, the share of Ethereum in the overall crypto market is about 18% a huge gap from the 47% controlled by Bitcoin but way better than the next-closest token.
Cardano (ADA) Cardano is a decentralized blockchain like Etherum it’s a platform that uses a native cryptocurrency, founded in 2015 by Ethereum co-founder Charles Hoskinson, Cardano was created to use a fraction of the energy demanded by Bitcoin and Ethereum. How Cardano does this is often by employing a proof-of-stake protocol that does not incentivize high energy usage and is an increasingly popular way for blockchains to validate transactions for security reasons. Cardano, has a market cap of $43 billion and is the fifth-most valuable cryptocurrency, within the world.
Dogecoin (DOGE) Named after the favoured Doge internet meme of a Shiba Inu dog, Dogecoin was created as a lighthearted coin to combat the blockchain craze. Dogecoin is speculated to be owned by Elon Musk, but there is no proof of that yet. The coin has spurted about 4,000% alone this year, making it the eighth-largest cryptocurrency by market cap. Its price peaked in early May at quite 70 cents, but jas retracted back.
Binance Coin (BNB)
Binance Coin is owned by the world most popular Exchange. One of the main reasons of it’s growth is that, like Bitcoin, it has a strict limit on the amount of tokens in circulation. Only 200 million BNB coin is in circulation with plans to burn more coins, this is one of the reasons BNB has risen to become the fourth-most valuable cryptocurrency in the world. The native currency of the popular Binance exchange, the coin has done more than 700% in 2021 alone.
Polkadot (DOT)Dot was created by Gavin Wood, who is also the co-founder of Ethereum he most likely helped drive DOT to be amongst the top 10 most valuable coins. One great feature of DOT is that it can be used between different networks, meaning applications built on Polkadot can work on both Ethereum and Bitcoin Network.