From the ancient days, the people in the world got underway. The transaction may be in the form of money or things. We all know while making a transaction there is an exchange between money and things, isn't it? Every country has its currency which helps in a transaction. Such as Indian currency is Rupees, American currency is Dollar, etc. These are all physical currency.
Evolution of cryptocurrency
Now you will have a question what's the exact meaning of crypto? Crypto means cryptography, a method of operating encryption and decryption to ensure communication from any third party, which intends to steal or misuse the information. Now, what about cryptocurrency, Cryptocurrency is a digital currency that does not have any physical presence. It is a peer to peer electronic service.
Do you know? Cryptocurrency is more secure as it uses Cryptography to maintain its security. Cryptography uses computational algorithms, as well as a public and private key. The public key is the user's identity, and the private key is the digital signature of the user. If you want to purchase any goods or services then you may use cryptocurrency instead of physical currency. In short, Cryptocurrency is an encrypted Decentralized Digital Currency. Which doesn't involve any movement of regulatory body, agency, or government. Cryptocurrency rates fluctuate and cannot be controlled. More than 1000 plus cryptocurrencies are ruling over the market out of which Bitcoin stands outstanding. Nowadays we all make use of paper currency, credit cards, and digital wallets. As Google pay, PayPal, Amazon pay, Paytm all are controlled by banks and governments. All such methods arose with few merits and few limitations. Realizing all the limitations the upcoming year will surely aim at the usage of digital currency. Let me make your concept more clear, if you are using any one of digital currency and want to payout, it will access out the following procedure initially you need to make a selection on, whom to transfer the money, next there will be a pop-up message taking the permission to transfer the money, secondly, the processing takes place wherein it step towards authentication and verifies your identity. and make sure the required balance for the transaction. That's it and further, the payout is done successfully. The use of digital currency replaces the hacking error limitation for the transfer of funds.
Why opt for cryptocurrency
Low transaction cost
Using cryptocurrency reduces the transaction cost, if you are transferring money from your digital wallet to your bank account you will misplace the amount of money.
No intermediary assigned
When you want to transfer the money to a person out of the country so in what bank does it varieties both the status of sender and receiver, also you need to follow out exact procedure but here with cryptocurrency, there is no such requirement of an intermediary.
One of the best parts of Cryptocurrency is that it offers its users to access money anytime and anywhere, there's no time limit. But as of when we compare with traditional one, we need to follow up a perfect procedure as well as time to access money.
Limit free purchase and withdrawal
Herewith cryptocurrency one may purchase as well as withdraw according to their balance, cryptocurrency adds a limit free purchase and withdrawal support.
By using cryptocurrency one may get permanently rid of paperwork and lengthy procedures, all you can complete within a few minutes.
Quick international transaction
With the help of cryptocurrency, you can quickly access international transactions. It hardly requires a few to get transferred. But when we talk about traditional ways it almost requires a day to get transferred.
Limitation of Cryptocurrency
If due to any case you attempt any wrong transfer here in the cryptocurrency the funds are irreplaceable. So once the money is gone it is gone forever. But as with the bank, the bank can refund the money as it knows the wrong transfers account details.
A way towards Illegal activities
Here in cryptocurrency, the senders and receivers identity is not unveiled unfortunately it is used for a lot of illegal activities via the internet. But if we speak about banks, banks act as a safe mode in such a case. Currency is a basic necessity for mankind, in the past as well as in the future. In the upcoming year's 95% of the world will be under the influence of cryptocurrency.
Types of Cryptocurrency
There are over 1500 different cryptocurrencies. An investment in knowledge pays a better interest. Before investing it's necessary to know deep about the crypto prices. As the price fluctuates the investment demand does change. It's necessary to make a proper choice between. A huge diversity can be seen in these currencies, it's difficult to choose one and invest in them. Here you will provide clear guidance over currencies. We will be discussing the best cyto to invest in. But some core principles stay the same in every crypto-like
The supply of cryptocurrency is limited.
Gold has an expensive value as it is a rare metal, and the supply of gold is limited in the world. In each cryptocurrency, the total supply in the protocol is predicted. For example, In total there can only be 21 million Bitcoin that can be mined and this will be completely mined by the year 2140.
The second principle focus on privacy
The most important fact is cryptocurrency is decentralized, no institution decides the price of Bitcoin in the market neither a wealthy man has the power to decide the price of it. The price of crypto entirely depends on market forces, which is the interaction between demand forces and supply forces. If demand rises, the price rises, and if supply rises the price falls.
Prominent cryptocurrencies are listed below:-
A trending currency that does not exist but one can invest in virtually. A Bitcoin adds different protocols and different prices. You have heard about bitcoin many times, let us examine it in detail. So here we go
Earlier Bitcoin's value was $5,000 and today it is over $40,000. It means it has boosted up to Rs30,00,000. In fact, December was affected by an increase in the value of Bitcoin.
From the above analysis, one might think to invest in Bitcoin as it is booming beyond expectation.
As the prices are much expensive it's impossible to buy one whole bitcoin, but you can buy it in infractions. What in fractions? Yes absolutely true, you can buy bitcoin infractions. You cannot buy 0.1 shares of any company but here in Bitcoin, it's possible. Herein 0.1 you can purchase. Bitcoin hits the highest cap in cryptocurrency, also the largest market cap. And alone Bitcoin has 65% of the total market capitalization of all cryptocurrencies put together.
Vitalik Buterin, a Russian Canadian programmer and Cryptocurrency researcher who came up with the idea of Ethereum in 2013 which finally went live in 2015. Basically, Ethereum is a programmable blockchain that people can build software to create valuable products and services. Ethereum can be well explained in two terms, that is software and platform. What makes ethereum different from other software platforms, and the reason that is blockchain.
Now, what is blockchain?
Most simple explanation, a record of data stored on the networks of computers. Here's a tree pillar of blockchain that makes it unique.
Many times we came across the Ether and Ethereum, two, unlike terms. To incentivize people to host and maintain the data on the blockchain Ether was created as a form of payment to fuel the Ethereum networks. So anyone who wants to build a software application on the Ethereum network has to pay for the computing power and space required using Ether. Here's a difference between Bitcoin and Ether.
Bitcoin has fixed and halving events, while Ether currently does not. A fixed supply and halving events protect Cryptocurrencies from inflation.
The idea for Ripple was actually first conceived in 2004 by Ryan Fugger and way called RipplePay. Each time you want to exchange or send money through the banking system you need to find a path to transfer that money depending upon circumstances. That's exactly what Ripple is here to change. Just like the Internet has its own rules or protocol to transfer information known as HTTP. Ripple uses its protocol known as RTXP, for moving value around the world. Ripple Labs, the creators of RippleNet, aim to create the "Internet of value" a way for money to move as quickly as information does. Through the Ripple, there is no reason to pay a fortune and wait for days when transferring money globally.
As we have discussed over Cryptocurrency and its branches hope you have invested basic knowledge about Cryptocurrency and its types. Before investing you must know its pros and cons and a few past analyses, this will help you to find a direction in transaction deals. Let us know your views in below comment box.