What is a Crypto Currency? | What are the Benefits of Crypto Currencies?

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Crypto currency, Crypto currencies, bitcoin

What is Crypto currency, you asked? Here’s a detailed explanation of the concept with great examples and list of most traded and used Crypto currencies.

The Concept of Crypto currency

The concept of crypto currency has been around for ages, long before the internet was created. Cryptocurrency was first used in 1996 by Wei Dai and Nick Szabo. They called it b-money. The first successful cryptocurrency that is still in existence today is Bitcoin that launched in 2009. Bitcoin was created by someone using the alias Satoshi Nakamoto.

Crypto currencies have gained a lot of popularity recently especially with the rise of Bitcoin to almost $60,000 per single coin. If you’re interested in learning more about cryptocurrency and how they work, here are some excellent guide to help you understand the concept properly.

Cryptocurrency is a hot topic nowadays. And if you haven’t heard about it, then you are missing a lot of things. There are many people who are interested in cryptocurrencies and want to know about it. But the difficulty is to find a clear and concise article that gives all the information about Cryptocurrencies (Bitcoin, Litecoin, Ethereum, etc). This article will cover some of this and give you the best tips on how to invest in cryptocurrency. And by the end of this article, you will be able to understand what Cryptocurrencies are, how they work and how to take advantage of them.

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Cryptocurrencies are the fastest growing market in the world, and there’s no doubt that it will continue to grow. There are already more than 1500 cryptocurrencies available on the market, and while some of them are used solely as a currency, others represent business ideas or projects. There are lots of ways to start trading cryptocurrencies, whether you want to use a regulated exchange site or a cryptocurrency broker. The most important thing is to choose the right exchange site so that you can trade in a safe environment.

In the last 10 year, cryptocurrencies have gone from being a mere curiosity to becoming a lucrative investment. To put things in perspective, if you had invested $ 1000 in Bitcoin back in 2010, you would now be worth over $ 5 million. And if you think this is just a lucky shot, then you may want to reconsider.

Definition of Crypto Currency

Cryptocurrencies are digital currencies that are encrypted to make it secure. They can be used like money while they’re on the internet. They’re great for buying and selling things, and a few people think they’re going to be the next big thing in the world of finance.

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A crypto currency is a currency that has some form of encryption and a value that can fluctuate. Cryptocurrencies are also referred to as altcoins. The best known cryptocurrency is Bitcoin. There are many crypto currencies in existence right now, including Monero and LiteCoin. Cryptocurrency is different from regular money because it doesn’t have any physical representation. It’s a form of digital currency that uses cryptography. Cryptography ensures that the transactions and ownership remain private, secure, and anonymous.

Here are some list of popular crypto currencies.

  • Bitcoin
  • Ethereum
  • Litecoin
  • Monero
  • Shiba Inu
  • Polkadot
  • Ripple XRP
  • USDT
  • Cardano
  • Waves
  • Stellar
  • USD Coin

What is Bitcoin?

In 2009 by Satoshi Nakamoto created Bitcoin as a digital currency.

How Bitcoins Work? Bitcoin is a crypto currency, which means that it is a form of digital asset designed to work as a medium of exchange. The value of Bitcoin fluctuates, just like the value of gold and other precious metals. Unlike currencies like the U.S. dollar or the Euro, Bitcoin has no central bank or government-issued support. So, its value depends entirely on what people think it’s worth.

The technology behind bitcoin, the blockchain, is transforming how we transact online. This blockchain is a decentralized digital public ledger for all crypto currency transactions. It’s constantly growing as “completed” blocks are added to it with a new set of recordings. It’s the first distributed timestamping system.

What is Ethereum?

Ethereum is said to be an open-source, public blockchain-based distributed computing platform featuring smart contract functionality. Other than being a tradeable crypto currency (ETH), Ethereum is also used to build Decentralized Applications (DApps) and launch Initial Coin Offerings (ICOs). Merchants are welcome to advertise new services, or the acceptance of Ether payments.

What is Litecoin?

Litecoin is a crypto currency alternative to the first and most famous crypto currency Bitcoin. The main difference between these two is the block generation time: Litecoin blocks are generated four times faster than Bitcoin blocks. Litecoin also uses scrypt as a proof-of-work scheme, so it cannot be mined with ASICs.

The Litecoin can also be defined as a peer-to-peer crypto currency and open source software project released under the MIT/X11 license. Litecoin is among the Crypto coins that are regarded as largest, oldest, and most used in the world.

What is Monero?

Monero is a crypto currency that focuses on privacy and scalability. It was created in April 2014, when it forked from Bytecoin. Monero is based on the CryptoNote protocol. However, it has 2 extra features that differentiate it from other crypto currencies: Ring Signatures and Stealth Addresses. These features provide the users with an extra layer of anonymity. With these features, the amounts transferred and the sender/receiver are hidden, making it impossible to trace back transactions on a blockchain.

Monero is a crypto currency with an emphasis on privacy, decentralization and scalability.

What is Shiba Inu?

Shiba Inu Coin is termed as the ‘Dogecoin killer’ a decentralized crypto currency that is Ethereum base altcoin to Dogecoin. This crypto currency was created in order to make Shiba Inu lovers community to have its own currency. The project was started in August 2020 by Ryoshi and since that time it has become one of the most popular crypto currencies with a price growth. The goal of the project is to create a coin that will spread around the world and will be accepted as a payment method for goods, services and for all those who love the Japanese breed of dogs!

What is Polkadot?

Polkadot is a blockchain with a built-in consensus mechanism. It allows multiple blockchains to exchange information, and to do so in a trustless way. This can be used to create many interesting things, including an internet of blockchains.

A blockchain is basically a digital ledger that records transactions and stores data in a way that is secure and permanent. Blockchain technology was originally invented for bitcoin, but it has since been adapted to create all sorts of other apps and programs. Polkadot is one such application, a blockchain technology specifically designed for the internet. It’s a platform that can connect different blockchains together, creating a new kind of internet where people own their identity and exchange value without centralized intermediaries.

 

Polkadot blockchain nodes network

The diagram above is a visual representation of the Polkadot protocol, which consists of relay chains and validator nodes.

Conclusion

In this post, we’ve looked at the details about crypto currency as well as some of the Crypto Coins. Hopefully, you will have learned a thing or two about crypto currencies and whether it is something that you should consider investing in. Be sure to share this post with your friends if you found it helpful and drop your comment in the comment section below.

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