What are cryptocurrencies and their types?

What are cryptocurrencies and their types?

Who you look at today is running behind Cryptocurrencies. In a very short time, Cryptocurrency has strongly expressed its power in the financial market. Since Crypto currency can also be called digital money because it is only available online and we cannot physically transact it.

Other currencies such as Rupees in India, Dollars in the USA, Euros in Europe, etc., are implemented and used by the governments of the whole country, just like these currencies are also used in the whole world. But the thing to understand here is that the Government has no control over these Cryptocurrencies because they are Decentralized Currencies, so no agency or government or any board has authority over them, due to which their value is not regulated. can go

So I thought why not give complete information about Cryptocurrency today. Since there is a lot of discussion about this topic, it is your right to learn about it and educate others. So, without delay, let's know what this cryptocurrency is and how many types are available.

What is cryptocurrency?

Cryptocurrency is also called digital currency. It is a kind of digital asset which is used for the purchase of goods or services. Cryptography is used in these currencies.

This is a Peer to 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 telling the banks, so some people believe that Cryptocurrency can be used in a wrong way.

If we do the first Cryptocurrency then it will be Bitcoin which was first brought to the world for these tasks. If we see today, there are more than 1000 Cryptocurrencies in the whole world, but some of them are more important, which we will discuss further.

Cryptography is used to create cryptocurrency.

If we talk about all cryptocurrencies then the most famous among them is Bitcoin. It was made first and it is also used the most. There have been many controversies about Bitcoin, but today Bitcoin is at the top of Cryptocurrencies.

Here I am going to tell you about some other Cryptocurrencies that you probably already know about.

How to invest in Cryptocurrencies?

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 more fees while trading. Similarly, the most popular cryptocurrency platform in India at present is “Wazirx”.

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

Types of Cryptocurrencies

It seems that there are many Cryptocurrencies, but there are only a few of them which are performing well and which you can use apart from Bitcoin.

1. Bitcoin (BTC)

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

This is a digital currency which is used to buy goods and services only online. It is a de-centralized currency which means that no government or any institution has any hand over it.

If we talk about today, then its price has increased considerably, which is now around 13 Lacs, the price of a coin. From this you can find out about its current importance.

2. Ethereum (ETH)

Like Bitcoin, Ethereum is also an open-source, decentralized blockchain-based computing platform. Its founder's name 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 a currency. Recently, due to a hard fork, Ethereum has been divided into two parts, Ethereum (ETH) and Ethereum Classic (ETC). It is the second most famous cryptocurrency after Bitcoin.

3. Litecoin (LTC)

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

Bitcoin has a big hand behind its creation and many of its features are similar to Bitcoin. Litecoin's block generation time is 4 times less than Bitcoin. Therefore, transactions are completed very quickly. It uses Scrypt algorithm for mining.

4. Dogecoin (Doge)

The story of the creation of Dogecoin is quite interesting. It was compared to a dog to make fun of Bitcoin, which later took the form of a Cryptocurrency. Its founder's name is Billy Markus. Like Litecoin, it also uses Scrypt Algorithm.

Today, the market value of Dogecoin is more than $197 million and it is accepted by more than 200 merchants all over the world. In this too, mining is very fast compared to others.

5. Tether (USDT)

According to Coinmarketcap.com, Tether is the largest stablecoin with a market cap of $78 billion as of January 17.

It uses the blockchain technology of Bitcoin. The stablecoin minimizes the volatility pegged to the US dollar and euro, and is one of the most popular options for people who want to invest in cryptocurrency, but are reluctant to deal with volatility.

6. Binance Coin (BNB)

This cryptocurrency is the parent cryptocurrency of the Binance crypto exchange, which is the world's largest exchange by volume.

Binance was only launched in 2017, but has expanded very quickly by facilitating trading on its platform. Crypto has come a long way from its price of just $0.10 in 2017 to 5200% on January 3, 2022.

According to Coinmarketcap.com on January 17, Binance (BNB) ranks fourth with a market cap of around $80 billion.

7. Solana (SOL)

Lately, Solana has been facing a decline, but the crypto is on the third place in this list due to its extremely successful performance in 2021. SOL has proven itself to be one of the fastest growing cryptos in the market. Also, there can be no disagreement that SOL is the biggest competitor to Ethereum. According to reports, SOL token increased by 13,662% in 2021.

8. Ripple (XRP)

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

This is a very famous cryptocurrency with an overall market cap of around $10 billion. According to its officials, Ripple provides users with "secure, instant and nearly free global financial transactions of any size and in which there are no chargebacks."

9. Polygon

This year's prospects can be considered quite good. And experts believe that the credit goes to Ethereum. Crypto is fully prepared for the transition to the ETH 2.0 version, which relies heavily on layer-2 solutions like Polygon. It may also indicate that Polygon has the edge to experience price appreciation, and is a good buy-and-hold option.

Advantages of CryptoCurrency

Now let's know about the benefits of some CryptoCurrency

The chances of fraud in cryptocurrency are very low.

If we talk about cryptocurrency, it is more secure than normal digital payment.

In this transaction fees are also very low if we talk about other payment options then.

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

Disadvantages of Cryptocurrency

Now let's know about some disadvantages of CryptoCurrency

Once a transaction is completed in Cryptocurrency, it is impossible to reverse it because there are no options.

If your Wallet ID is lost then it is lost forever as it is not possible to recover it. In this case, whatever money you have in your wallet is lost forever.

What did you learn today?

I fully hope that I have given you complete information about Cryptocurrency and I hope that you will understand about Cryptocurrency.

I request all my readers that you also share this information with your neighbors, relatives, friends, so that there will be awareness among us and everyone will benefit from it. I need your help so that I can deliver more new information to you.

I have always tried to help my readers from all sides, if you have any doubts, you can ask me. I will definitely try to solve those doubts.