What is Cryptocurrency?

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Cryptocurrency

Cryptocurrency also known as crypto used to refers to any currency that exists digitally, or virtually, and uses cryptography for secure transactions. It is almost impossible to duplicate or counterfeit cryptography. It is a peer-to-peer system that allows anyone to send and receive money from anywhere. It’s a decentralized system that verifies that both parties to a transaction have the money claimed to have. This eliminates the need to use traditional intermediaries such as banks when funds are transferred between entities.

History of Cryptocurrency

American cryptograph David Chaum invented e-cash, a cryptographic electronic currency. In 1995, he made it possible through Digi-cash. This was an early form of cryptographic electronic payment. This chain of getting promotions in this electronic currency continues and in January 2009, Satoshi Nakamoto created Bitcoin, the first decentralized cryptocurrency. It released open-source software for the first time in 2009. There are currently 20,268 cryptocurrencies in existence as of July 2022. Not all cryptocurrencies are valuable or active. After removing many “dead”, cryptos, there are only 10,953 active cryptos. More than 70 of these cryptocurrencies had a market cap exceeding $1 billion.

Top 10 Cryptos With Market Caps

All Market Caps as of October 28, 2022.

1. Bitcoin (Market Cap: $308.17 Billion):

Bitcoin (BTC), the most popular cryptocurrency, is widely accepted. It was founded in 2009 and is still the most widely traded cryptocurrency. It is a digital currency that can be used to transfer funds on a peer-to-peer network.

2. Ethereum (Market cap: $191.7 million):

Ethereum is the community-run technology that powers the cryptocurrency ether (ETH), and thousands of other decentralized applications.

3. Tether (Market Cap: $68.987 Billion):

A group of Bitcoin enthusiasts and early adopters founded Tether. They were passionate about digital fiat currency use. Tether to was launched by the company in 2014. It is a blockchain-enabled platform that aims to disrupt the traditional financial system and offer a modern approach to money.

4. USDC (Market Cap: $47.63 Billion):

U.S Dollar Coin (USDC) is a fully reserved stablecoin. It is a type of cryptocurrency or digital asset. USDC, unlike other cryptocurrencies that fluctuate in price, is designed to maintain a price equivalent to the U.S. Dollar.

5. BNB (Market Cap: $46.03 Billion):

Binance Coin (BNB), a cryptocurrency issued by the Binance exchange, can be traded with the BNB symbol. In addition, BNB was originally based on Ethereum, but it is now Binance’s native currency.

6. XRP (Market Cap: $23.09 Billion):

Ripple refers to the company or network, and XRP refers to the cryptocurrency token. XRP’s purpose is to act as an intermediary mechanism for exchange between two currencies, networks, or tokens.

7. BUSD (Market Cap: $21.62 Billon):

Binance USD (BUSD), a fiat-backed stablecoin, is issued by Binance & Paxos. Each token of BUSD is backed 1:1 with US dollars in reserve.

8. ADA (Market Cap: $13.417 Billion):

Cardano ( ADA ) is a decentralized, proof-of-stake (PoS), a blockchain that was created to be a more efficient alternative for proof of work (PoW). Cardano’s cryptocurrency, Ada, was named after Augusta Ada King (1815-1852), who is often regarded as the first computer programmer.

9. DOGE (Market Cap: $11.16 Billion):

Dogecoin (DOGE), like other cryptocurrencies such as Bitcoin or Ethereum, is based on Blockchain technology.

10. SOL (Market Cap: $10.92 Billion):

Solana (SOL) is known for its speedy and efficient operation. The native cryptocurrency of Solana, SOL tokens are used to pay transaction fees. Solana was launched in 2017 and has since grown to be one of the most popular cryptocurrencies worldwide.

How Cryptocurrency Works

It’s helpful to have an overview of cryptocurrency so that you can understand it as a beginner. It all depends on three factors:

  1. Mining
  2. Sell, Buy, and Store
  3. Investing

1. Mining:

Cryptocurrency Mining is a tedious, expensive, and only occasionally rewarding job. Mining is a lucrative investment. It involves a large network of computers that verifies and secures blockchains, the virtual ledgers that record cryptocurrency transactions. Computers on the network receive new coins in return for their processing power.

2. Buy or Sell:

You can purchase cryptocurrencies from brokers, central exchanges, or individual currency owners, and then sell them to you. You can store cryptocurrencies in wallets. This is how an investor/trader enters or exits a particular security, such as a stock, bond, or currency.

3. Investing:

In addition, Investors can choose to invest in cryptocurrency through trusted platforms such as Binance, Coinbase, and Gemini.

Trade With Cryptocurrency

Crypto trading is the act of trading in cryptocurrency. These are five simple ways to trade with cryptocurrency:

    1. Sign up for any trusted platform.
    2. Buy a wallet.
    3. Connect this wallet to your bank account.
    4. Place your desired currency order.
    5. Trade with the currency

Crypto Rates

Every minute, the rates of cryptocurrency fluctuate. Many platforms offer trading in cryptocurrencies. Additionally, you can also find rates for different cryptocurrencies on these platforms. These rates can be viewed by visiting Binance.

Is Cryptocurrency Safe

If you are looking to get direct exposure to digital currency demand, cryptocurrency can be a great investment. Although investing in crypto assets can be risky, it can also prove to be a wise investment when done correctly and as part of a portfolio. Moreover, cryptocurrency investors can make a lot of money by investing in various coins, the most popular cryptocurrency, bitcoin, has made its investors millions of dollars. Every business that has grown to a certain extent must take risks. Investors should be aware that risk-takers are real money-makers.

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