A Beginner’s Guide to Cryptocurrency 

What is cryptocurrency?

Put it at its simplest, cryptocurrency is the digital form of money. This mode of payment can be utilized for purchasing and selling goods and services online. Various kinds of cryptocurrencies are accessible online today. Cryptocurrency is making progress by leaps and bounds as crypto space is becoming more and more popular day by day. Cryptocurrencies in the form of tokens are also being operated by many companies. The technology that cryptocurrencies use is ‘Blockchain’. Blockchain technology makes the nature of cryptocurrency ‘decentralized’ which means that no third party or governmental organizations have any authority over your money.

How does Cryptocurrency work?

The value of cryptocurrency is not managed and preserved by central authority unlike the US dollar or the Euro. Rather it is referred as a digital, encrypted, and decentralized medium of exchange. And all its tasks are broadly distributed among its user via internet. The very first cryptocurrency was bitcoin which was first outlined by Satoshi Nakamoto in a 2008 paper and it was given the title of “Bitcoin: A Peer-to-Peer Electronic Cash System.” According to Nakamoto, the project was “an electronic payment system based on cryptographic proof instead of trust.”

Why is Cryptocurrency Getting Popular?

Around 6,700 cryptocurrencies are available online today. According to CoinMarketCap.com people are getting profit on daily basis by trading cryptocurrencies. There are many reasons behind the popularity of cryptocurrency some of which are:

• The blockchain technology is way safer than payment methods that uses fiat currencies
• Experts believe that inflation can be reduced because central banks do not have any authority over crypto and that is one of the major reasons behind the popularity of cryptocurrency
• The crypto enthusiasts believe that "Cryptocurrency is the future". So they are actively engaged in purchasing and selling cryptocurrencies before they become more costly and valuable.

Advantages of Trading Cryptocurrency:

• Crypto is jam-packed with money
• Cryptocurrency is the future
• Privacy is Important
• Only you control your money
• Quick transfer of money across borders

Most Popular Cryptocurrencies around the World:

Bitcoin

Bitcoin is one of the most popular cryptocurrencies. You can purchase almost everything from Bitcoin and can make all types of deals and trades with it. Watching the impact of Bitcoin on the world, many companies and organizations have invested in this digital money. For instance, a year ago, in October, the electronic payment facility, PayPal, stated to invest in Bitcoins and permitted their users to buy goods and retail Bitcoin. Bitcoin is all set to reach 1 Trillion Dollar Market Cap soon.

Ethereum

Ethereum is the biggest competitor of Bitcoin. Yes, The King of DeFi (Ethereum is based on DeFi technology); Ethereum has market capitalization of $68,127 billion. With the upcoming technological revolutions, DeFi will surely make it place on the top. It also allows decentralized mobile apps called dApps. In recent months the value of Ethereum has surged to over $579 and it is strong on its way to be at the top.

Ripple (XRP)

If you want full benefits like low exchange rates and instant confirmation of transactions and cannot compromise on the reliability then this coin is for you. Ripple has its own currency XRP, its price is quite affordable. You can obtain maximum benefits using the buy at bottom and sell at the top rule. 2021 is unquestionably going to be the year of Ripple.

Litecoin

Called as the “silver” of the cryptocurrency, Litecoin is a well-established name in the crypto space. It has reached to 4th place on the list of largest coins by market cap. It is one of the top performing coins right now as its value has doubled over a span of a month. Investing in Litecoin might be very beneficial in the year 2021, as confirmed by the experts.

EndNote:

If people invest their money in the cryptocurrencies such as Bitcoin or Ethereum, which are likely to achieve their aims in coming years as the blockchain technology is attracting much attention, so the investors are more likely to be richly rewarded in the upcoming years.

However, cryptocurrency is a volatile market; hence, you always have to take risks. There are no guarantees of profit yet people who invest keeping the safety and the risk factor in mind, gets maximum profits through cryptocurrency trading.

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