what is cryptocurrency??

In today’s world, there is a lot of buzz about cryptocurrencies and due to its increasing trend, people are enthusiastic about exploring and investing in them. But what does this cryptocurrency mean? Is it safe to invest in cryptocurrency? How do we invest? Where do we invest? What are the types of cryptocurrencies? These are some of the questions that pop into our minds when we think of cryptocurrency.
So in this article let us find the answers to the above questions and get more clarity on cryptocurrency.

What is Cryptocurrency?
Cryptocurrency (also called crypto), is a digital or virtual currency. Cryptocurrency is comparatively a new type of currency. It drives completely in a different way than the traditional currency we use, which is managed by the government or the centralized system.
The most valuable and popular cryptocurrency is Bitcoin, which was introduced and invented on a white paper by an anonymous person named Satoshi Nakamoto in 2008. But it’s still a mystery whether there is anyone in person by this name or a group of people who have written it.
But today we have thousands of cryptocurrencies listed on coinmarketcap.com which means that is more than all of the different types of fiat currencies in the world. Cryptocurrency transactions can be done across borders.
After understanding the basics of cryptocurrency now let us move ahead to understand how it works?
How does cryptocurrency work?
Cryptocurrency is a decentralized currency that allows peer-to-peer cryptocurrency transactions without the need of any government authorities or banks for the transactions. As it is not a physical type of currency there is no fear of losing it. With the help of cryptographic techniques, we can buy, sell, and trade the currency and it brings on trust to invest in it.
Cryptocurrency works on blockchain technology that stores information in a digital format, it allows the information to be recorded and distributed but does not allow to edit or delete it. In this way, it assures the security of all the transactions recorded and the data.
Types of cryptocurrencies
As mentioned earlier there are thousands of cryptocurrencies in the market today like Bitcoin, Ethereum, Litecoin, Binance coin, Dogecoin, Tether, Solana, and many more. So let us go through a few of the cryptocurrencies in detail.

Bitcoin — Bitcoin is the most trending cryptocurrency around the globe. It was introduced in 2008 by an anonymous person or maybe a group. Bitcoin has a limited supply and its value will always be 21 million bitcoins only. But According to research by blockchain.com, 18.89 million Bitcoins have already been mined, and they are already circulating in the market. This means that only 2 million Bitcoins are left to be mined.
Ethereum — It is the second most popular currency after bitcoin. Ethereum was created in 2013 by a programmer Vitalik Buterin. Ethereum is not a currency, Ether (ETH), is the cryptocurrency of the Ethereum network. Ethereum is a platform to create smart contracts and decentralized applications (dApps).
Binance coin — Binance coin was discovered in 2017 by Changpeng Zhao. It is issued by the Binance exchange and trades with a BNB symbol. At first, BNB was based on the Ethereum network but is now the native currency of Binance’s blockchain, the Binance chain. It supports numerous utilities such as trading fees, exchanges fees, and any other fees on the Binance exchange.
Litecoin — Litecoin was brought into existence by Charles “Charlie” Lee in October 2011 he was a former Google engineer. It was reviewed to be among the first altcoins. Litecoin was designed for reasonable and day-to-day transactions.
Cryptocurrency is a hugely growing field. New cryptocurrencies are turning up every day and some are depleting. The early investors are little lucky to get in the profit, but sometimes there is a chance that an investor can also suffer loss as the trade goes on 24/7 and the numbers frequently keep on changing as it’s not like the share market or the mutual funds.

Cryptocurrency is still getting developed across the world and people are looking up to it. But it will still reach a high level in the coming years and the value may increase accordingly. We need to analyze everything beforehand so that it becomes easier when we are ready to invest in it.


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