What is CryptoCurrency? How does it work? Its Types? What are its Advantages and Disadvantages?

What is CryptoCurrency?
What is CryptoCurrency? How does it work? Its Types? What are its Advantages and Disadvantages?

So what is cryptocurrency after all (What is Cryptocurrency) ? Whoever you see today is running after Cryptocurrencies. In a very short time, Cryptocurrency has expressed its power in the financial market. Cryptocurrency can also be called digital money because it is available only online and we cannot do it physically.

Governments implement other currencies like Rupees in India, Dollar in the USA, Euro in Europe, etc. in the whole country and are used in the same way this currency is also used in the whole world. But the thing to understand here is that the government does not have any hand over these cryptocurrencies because they are decentralized currency, so there is no authority from any agency or government or any board over them, due to which their value is not regulated. can go

So I thought why not today you should be given complete information about what is Cryptocurrency. Since this topic is being discussed in full swing, then it becomes your right that you also know about this subject and educate others. Then without delay, let us know what is this Cryptocurrency and how many types of it are available.

What is Cryptocurrency?

Cryptocurrency is also called digital currency. It is a kind of Digital Asset that is used for the purchase of things or services. Cryptography is used in these currencies. This is a Peer Peer Electronic System, which we can use to purchase Goods and Services through the Internet in place of regular currencies. In this system, the government can work without informing the banks, so some people believe that Cryptocurrency can also be used in the wrong way.

If we do Cryptocurrency first, then it will be Bitcoin which was first brought into the world for these works. If we see today, there are more than 1000 Cryptocurrency in the whole world, but only a few of them are more important, about which we will know later. Cryptography is used to create a cryptocurrency.

If we talk about all the cryptocurrencies, then the first one that became famous among them is Bitcoin. It was also made first and it is also used the most. There have been many controversies regarding Bitcoin, but today Bitcoin is at the top of Cryptocurrencies. Here I am going to tell you about some other Cryptocurrencies about which you may already know.

How to Invest in Cryptocurrencies? How does it work?

To invest in Cryptocurrencies, you have to choose the right platform. Because if the right platform is not chosen then you may have to pay extra fees while trading. Similarly, the most popular Cryptocurrency platform in India at present is “Wazirx”.

It is very easy to invest and trade in it and its founder is also an Indian. I have also invested in it and have done it for many years. You can also invest your money in it if you want.

Types of Cryptocurrencies

Whenever seen, there are numerous sorts of Cryptocurrencies yet there are a couple of them that are performing admirably and which you can utilize separated from Bitcoin.

1. Bitcoin (BTC)

bitcoin

If we talk about Cryptocurrency and not talking about Bitcoin then it is not possible at all. Because Bitcoin is the first cryptocurrency in the world. Which was created by Satoshi Nakamoto in 2009.

It is a digital currency that is used to buy goods and services only online. It is a decentralized currency which means that the government or any institution does not have any hand on it.

If we talk about today, then its value has increased a lot, which is now around 13 Lacks, the value of a coin. From this, you can find out about the importance of its presence.

2.Ethereum (ETH)

ethereum

Like Bitcoin, Ethereum is also an open-source, decentralized blockchain-based computing platform. The name of its founder is Vitalik Buterin. Its Cryptocurrency token is also called ‘Ether’.

This platform helps its users to create a digital token, with the help of which it can be used as currency. Recently, a hard fork has split Ethereum into two halves, Ethereum (ETH) and Etheriem Classic (ETC). It is the second most famous cryptocurrency after Bitcoin.

3. Litecoin (LTC)

lite coin

Litecoin is also a decentralized peer-to-peer cryptocurrency which is open-source software released under the MIT/X11 license in October 2011 by Charles Lee, who was previously a Google Employee.

Bitcoin has a big hand behind its creation and many of its features are dangling from Bitcoin. Litecoin’s block generation time is 4 times less than that of Bitcoin. Therefore, the transaction in this is completed very quickly. In this, the Scrypt algorithm is used to do mining.

The story of the formation of Dogecoin is quite interesting. It was compared to a dog to mock Bitcoin, which later took the form of a cryptocurrency. The name of its founder is Billy Markus. Like Litecoin, Scrypt Algorithm is also used in this.

4. Dogecoin (Doge)

Dogecoin

Today the market value of Dogecoin is more than $197 million and it is accepted by more than 200 merchants all over the world. Mining in this also happens very quickly as compared to others.

5. Faircoin (FAIR)

fair coin

Faircoin is part of a much larger grand socially-conscious vision which is a Spain-based co-operative organization also known as Catalan Integral Cooperative, or CIC.

It uses the blockchain technology of Bitcoin, but with a more socially constructive design. Like other cryptocurrencies, Faircoin does not depend at all on mining or minting new coins.

But instead, they use certified validation nodes, or CDNs, for block generation. To verify coins in Faircoin, ‘proof-of-cooperation’ is used in place of proof-of-stake or proof-of-work.

6. Dash (DASH)

dash coin

Its earlier names were XCoin and Darkcoin, Dash, meaning ‘Digital’ and ‘Cash’. It is an open-source, peer-to-peer cryptocurrency similar to Bitcoin.

But it has more features than Bitcoin such as ‘InstantSend’ and ‘PrivateSend’. In InstantSend, users can easily complete their transactions, while in PrivateSend the transaction is completely safe, where the privacy of users is given great importance.

Dash uses an uncommon algorithm called ‘X11’ whose specialty is that it becomes compatible with very less powerful hardware so that more and more people can mine their currency themselves. X11 is a very energy-efficient algorithm, which consumes up to 30% less power than Scrypt.

7. Peercoin (PPC)

peer coin

Peercoin is completely based on the Bitcoin protocol and in which many source codes are found. In this, to verify the transaction, the Proof of Work is relied upon, and the Proof of Stake system is also taken into account.

As the name suggests, Peercoin is also a peer-to-peer cryptocurrency similar to Bitcoin, in which the source code has been released under the MIT/X11 software license.

Peercoin also uses the SHA-256 algorithm similar to Bitcoin. And it requires very little power to do transactions and mining.

8. Ripple (XRP)

ripple

Ripple was released in 2012 and it is based on distributed open-source protocol, Ripple is a real-time gross settlement system (RTGS) that runs its own Cryptocurrency which is also known as Ripples (XRP).

It is very much and famous Cryptocurrency and has an overall market cap of around $10 billion. According to their officials, Ripple provides users with “secure, instant and nearly free global financial transactions of any size and without any chargebacks.

9. Monero (XMR)

monero

It is actually born from the fork of Bytecoin in the year 2014 and since then it has made a famous profit. This cryptocurrency works in all systems such as Windows, Mac, Linux, Android, and FreeBSD.

Like Bitcoin, Monero also focuses on privacy and decentralization. The most important difference between Bitcoin and Monero is that high-end GPUs are used in Bitcoin, whereas consumer-level CPUs are used in Monero.

What are its Advantages and Disadvantages?

Advantages of CryptoCurrency

The chances of fraud in cryptocurrency are very less.

If we talk about Cryptocurrency, then they are more secure than a normal digital payment.

Transaction fees are also very less in this if we talk about other payment options.

In this, the accounts are very secure because different types of Cryptography Algorithm are used in it.

Disadvantages of Cryptocurrency

Once a transaction is completed in Cryptocurrency, It is impossible to reverse it because

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