Have you ever imagined investing your money and storing it in the cloud? We are in a digital technology age where nothing is impossible. Cryptocurrency is the new addition to the digital world where you can store, invest, and even make transactions online. It does not follow the routine method of banks. Transactions are done instantly.
Since the rise of cryptocurrencies, especially bitcoin, the world of trading in cryptocurrencies is booming all over the financial markets these days. It is no doubt that cryptocurrencies are maturing day by day in spite of the uncertainty, disillusionment, and hike of Bitcoin and other related cryptocurrencies.
The reason cryptocurrency has surged into fame is that it follows a flat currency. Therefore, the exchange rate will be the same wherever you are located. It is safe and secure and bypasses any third-party intervention. Hence, the transactions are done based on peer-to-peer.
If you, too, wish to get hands-on with cryptocurrency, this detailed article will help you understand cryptocurrencies in depth.
Firstly, you should know that there are various types of cryptocurrencies, and each has its share of advantages. Read on to know furthermore about such important aspects.
Bitcoin was the first cryptocurrency in the digital currency family. If we talk about the first appearance of Bitcoin, it first showed up in 2009 by Santoshi Nakamoto. Since Bitcoin is virtual money, it is safe and secure here Moreover, the transactions are fast as there is no third party involved.
Moreover, you can store your digital currency in a digital wallet that is entirely web-based. Upon creating an account, you will own a key or a password that you can keep on your mobile, PC, or laptop. You will be allowed to access your currency after you input the private key. The best part is hackers can’t steal your money or Bitcoin in the form of digital assets at any cost. However, its safety entirely depends on how careful you are with the storage of the keys. Here, you should note one thing; If you lose the keys by any chance, you will never be able to see your money in the form of Bitcoins, nor will you be able to claim it.
The benefit of blockchain is every Bitcoin-related transaction is recorded and stored in the network. Therefore, it can be accessible to every user in the network. Consequently, it is the safest transaction method and has attracted many investors recently. The technology used by Bitcoin is unique and far safer than other cryptocurrencies. Moreover, the Bitcoin records are not stored in one computer but in a chain of computers in the network, thus making it one of the safest digital currencies in the world of cryptocurrencies.
The most significant advantage of cryptocurrency is the presence of hot wallets. All total there are two types of wallets, i.e. hot wallets and cold storage which have their equal share of pros and cons.
Types Of Other Cryptocurrencies
There are different types of cryptocurrencies that you need to know about. To have an overall better idea, read on to know further.
- Ethereum (ETH)
One of the first alternatives of Bitcoin was known as Ethereum. It is a decentralized software that protects your digital currency from fraud and interference from any third party. The primary aim of Ethereum was to make it user-friendly so that anyone could freely use it regardless of nationality. Moreover, there is no exchange rate as the currency is the same worldwide.
- Litecoin (LTC)
Litecoin, another counterpart of Bitcoin, came into existence in 2011. This particular cryptocurrency tried to follow in its footsteps the way Bitcoin did. However, it has a faster transaction rate than Bitcoin and is not controlled by a central bank. Thus it makes the transaction flexible and safe.
- Cardano (ADA)
Experts and mathematicians came up with the initiative of Cardano. Though Cardano stands out among its PoS peers, it is still in its initial stage and will take some time to grow in the near future in the cryptocurrency market.
At the end of the day, simplest, it is no doubt cryptocurrencies, especially bitcoin have started to become a revolutionary technology. The futurists believe that cryptocurrencies will not take much time to become a compulsory mode of transaction in the near future. As bitcoins are well-known for their increasing acceptance by worldwide merchants and customers, this popular form of cryptocurrency will keep on shining.