Have you ever heard of Cryptocurrency? Definitely yes, crypto becomes the hottest buzzword these days in terms of investing, but probably you are still wondering what is it exactly. However, you do not need to worry, because it will be discussed and explained in detail below.
What Is Cryptocurrency?
Cryptocurrency is a technically decentralized digital asset purposed to be used over the world through the internet connection. It is a kind of digital asset or digital money that can be used securely for any online transaction. The word comes from “cryptography” which means art writing and code solving.
People also know it as a crypto coin or are often mentioned as crypto. It does not have regulatory authority because all transaction records are decentralized by the system. Do you think it is safe to use crypto coins? As we know that investing your money in crypto is risky, however, it is also potentially extremely profitable.
It uses encryption to authenticate and protect online transactions, so it is a very safe system. The purpose of encryption is to make a super secure and safe system. A crypto coin is saved in a digital wallet, so you can not physically touch the money or coin.
Will Cryptocurrency Be The Future Of Finance?
Here, are some reasons why cryptocurrency can be your financial system in the future?
- When you do trade in crypto, you will obtain many benefits. Cryptocurrency becomes the first alternative to replace the conventional banking system which will give the fastest, easiest, cheapest, and safest process for online transactions.
- Crypto coins can be used to pay for goods or even services, but the good thing, the transaction can not be manipulated by any central authority or government. Does not matter, what happens to the government, your coin will remain secure and safe. Unlike, if you save your money in a certain bank, and the bank system is hacked, then you will lose all of your money within one second.
- Crypto coin offers an equal chance to everyone, no matter who are you, where you were born, where you live, or what your job is. As long as you have a device and internet, you have completely the same crypto access as everyone in the world. Unlike, conventional banks, you do need even to provide an address to do trading, all you require is just an internet connection.
- All accounts of the coin owner are securely and safely encrypted to make sure the legitimacy for record-keeping, because the crypto is decentralized, so you fully own and control when you want to sell and buy the coin. Even the government can not take it away from you.
- All Crypto transaction is transparent. Some features allow the trader to look into transaction data, including, when, where, and how many. The account owner can see how many crypto coins were stored in the digital wallet easily. This will completely reduce fraudulent transactions.
How Does It Work?
How do you store your Cryptocurrency? A digital wallet is used to store your crypto coins, you can have it by just downloading an app or through the vendor where you purchase your coins. Then how Cryptocurrency works?
- Mining is a very complex process. Technically, the miners need to solve certain mathematical codes over the computer system and be rewarded with the coins.
- Buying, selling, storing. Investors can buy and sell crypto coins from exchanges, brokers, or even individual currency owners. There are many applications for trading cryptocurrency. You can just simply download it from your device. Once you buy the coins, you can store them in your digital wallet.
- Transacting, investing. Crypto coins can be very easily transferred from one digital wallet to others just by using a smartphone or other devices. You can use the coins to buy the goods or services, you can do trading, and you may also encash them.
Read also : What Is Decentralized Finance (DeFi)?
What Is The Highest Crypto Coin?
There are over a thousand crypto coins that exist recently. Have you ever heard of Bitcoin, Ethereum, Dogecoin, or Litecoin? They are the type of crypto coin which are trending everywhere over the world. Let’s talk about the three top coins recently used by people in the world.
- Bitcoin (BTC), is the first crypto coin launched in 2008, so far, it is the biggest, highest price, and the most known by people. It was found by a Japanese named Satoshi Nakamoto. Crypto investors seem to invest in Bitcoin because it has more strength and stability. And it is also much more valuable than other coins.
Recently 1 BTC value was USD 29,629, but keep in mind, that all crypto coins will change value every second. BTC’s market cap reaches USD 565 billion. Bitcoin becomes the most general reference when people talk and discuss crypto.
- Ethereum,(ETH) is the second most famous after Bitcoin. ETH was established in 2013 by a programmer named Vitalik Buterin and Gavin Wood in London, United Kingdom. Ethereum coin is a well-known coin and the experts say that ETH potentially grows as much as 400% in 2022. Ethereum has grown rapidly in value since its creation. 1 ETH values USD 1,810. The market cap reaches USD 219 billion.
- TETHER (USDT), is a stable coin which means the value of the highest and lowest price is not too far separated and it was purposed to be worth USD 1.00 and maintain the same value. It is more consistent than other crypto coins. Market cap reaches USD 72 billion. The tokens are issued in Hong Kong by Hong Kong Tether Limited and controlled by the owner of Bitfinex. Market cap reaches USD 72 billion.
Where You Buy Crypto Coins
There are many exchanges to buy, sell, invest, and trade crypto coins. Here, you may refer to these applications that you can download from your devices:
Coinbase is the best exchange overall for the beginner.
Crypto.com is the best mobile crypto exchange and is easily accessed from a smartphone.
Gemini is the best security crypto exchange.
Kraken is the best low-fee exchange for trading.
CashApp is the best for buying and selling Bitcoin.
Bisq is the best-decentralized exchange.
There are still many applications for the trading cryptocurrency you can find and download easily.