CRYPTO CURRENCY: New Currency Ruling the World
As technology is getting precocious day by day in the modern world, it is no surprise that with every second person having mobile phones in their hands it is garnering more attention and awakening people’s curiosity in it. One such aspect of technology is CRYPTOCURRENCY which is stealing human beings’ interest and observation.
Everyone wants to know to invest in it as people think it will be the currency of the future and the Republic of El Salvador has already declared bitcoin as its official currency since September 2021. So, let’s find out what is this cryptocurrency.
What is Cryptocurrency?
A “Crypto or Cryptocurrency” is a digital currency that doesn’t have to reckon on banks to verify transactions. Rather than using the physical form of currency to exchange in the real world to buy goods and services or for profit and loss, cryptocurrency payments subsist in a digital form in an online database that recounts as specific transactions. When people transfer cryptocurrency money, the transactions are recorded in an online ledger. People deposit their cryptocurrency in a digital wallet.
IS Cryptocurrency Secure?
‘Blockchain Technology’ is used to build cryptocurrency. Blockchain is a shared and unchangeable ledger that facilitates the procedure of recording transactions and tracking assists in a business web.
When a user wants to send money to someone, the said transaction is said in the form of ‘blocks’, which is disseminated over the network where it’s verified, when the transaction is done, the block is added in the chain and becomes an indissoluble account that can’t be reformed, with the cryptocurrency being transferred to the recipient or receiver.
This process is a justly complex technical process but the advantage of using blockchain is that it will be hard for hackers to meddle or tamper with the digital ledger of cryptocurrency transactions.
While the security is applied, many cybercriminals practice “Cryptojacking”. Cryptojacking is the unauthorized and malevolent use of someone else’s computer without their consent to mine cryptocurrency, a crime committed by cybercriminals.
Types of Cryptocurrency
There are thousands of cryptocurrencies in the world. Some of them are:
- BITCOIN
Price: $56,401
Market Capitalization: $1.1 trillion
Bitcoin was the first decentralized cryptocurrency created in 2009. When people talk about cryptocurrency, bitcoin is the preferred term for them to describe cryptocurrency. Its breakthrough came in 2017.
- ETHEREUM(ETH)
Price: $3,500
Market Capitalization: $413 billion
Ethereum debuted in 2015, is the second most popular or recognized currency in the crypto world. This cryptocurrency allows you to perform several functions. It allows users to do the transaction almost anonymously, even if the transaction is overtly available on the blockchain.
- CARDANO(ADA)
Price: $2.15
Market Capitalization: $70 billion
Cardano is a layered blockchain platform, it was founded by the co-founder of Ethereum, Charles Hoskinson in 2017. Cardano also uses smart contracts, enabling identity management.
- BINANCE COIN(BNB)
Price: $430
Market Capitalization: $72 billion
Binance cryptocurrency is issued by Binance. It is currently the largest exchange cryptocurrency in the world in terms of trading. Originally, it was created as a token to pay for discounted stocks but now it is also used for payments and buying of goods and services.
- TETHER(USDT)
Price: $1.00
Market Capitalization: $68 billion
Tether launched in 2014 is referred to as ‘Stable Coin’, the price is secured at $1 per coin. Stable coins are tied to the value of a specific asset i.e. US dollar. This cryptocurrency often acts as a medium when traders move from one cryptocurrency to another, instead of going back to the dollar, they use a tether.
Some other cryptocurrencies are Ripple (XRP), Solana (SOL), Polkadot (DOT), Dogecoin (DOGE), Terra (LUNA), Uniswap (UNI), and many more.
Research to Invest in Cryptocurrency Safely
Investment of any kind is quite risky, same with cryptocurrency investment. It should be of concern that before investing even one penny in cryptocurrency, people should do thorough research. There are many cryptocurrencies to choose from, it is quite difficult to consider the one which will bring more profit and that is why people should do analyze every type of crypto before putting their money on one. Before investing in crypto, the investor should study the price, market capitalization, transparency, official website, education, Github, and forums and community. Doing all this research and talking and getting advice from the experienced person will bring you knowledge and profit.
edited and proofread by nikita sharma
