✅ What is Cryptocurrency and their types? [New]

 What is cryptocurrency and their types?

So what is cryptocurrency after all ? Whoever you see today is running after Cryptocurrencies. In a very short time, Cryptocurrency has expressed its power in the financial market. Since Crypto currency can also be called digital money because it is available only online and we cannot do it physically.

Governments apply other currencies like Rupees in India, Dollar in USA, Euro in Europe etc. to the whole country and are brought into use, in the same way these currency is also used all over the world. But the thing to understand here is that the government does not have any hand over these cryptocurrencies because they are decentralized currency, so no agency or government or any board has authority over them, due to which their value has not been regulated. can go.

So I thought why not today you should be given complete information about what is Cryptocurrency. Since this topic is being discussed in full swing, then it becomes your right that you also know about this subject and educate others. Then without delay, let us know what is this Cryptocurrency and how many types of it 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 things or services. Cryptography is used in these currencies. This is a Peer to Peer Electronic System, which we can use through the Internet to purchase Goods and Services in place of regular currencies. In this system, the government can work without informing the banks, so some people believe that Cryptocurrency can also be used in a wrong way.

If we do Cryptocurrency first, then it will be Bitcoin which was first brought into the world for these works. If we see today, there are more than 1000 Cryptocurrency in the whole world, but only a few of them are more important, about which we will know later. Cryptography is used to create cryptocurrency.

If we talk about all the cryptocurrencies, then the first one that became famous among them is Bitcoin. It was also made first and it is also used the most. There have been many controversies regarding Bitcoin, but today Bitcoin is at the top of the Cryptocurrencies. Here I am going to tell you about some other Cryptocurrencies, about which you may already know.

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

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


Types of Cryptocurrencies?

If seen, 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 talk about Bitcoin then it is not possible at all. Because Bitcoin is the first cryptocurrency in the world. Which was created by Satoshi Nakamoto in 2009.

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

If we talk about today, then its value has increased a lot, which is now around 13 Lacks, the value of a coin. From this you can find out about the importance of its present.


2.Ethereum (ETH)

Like Bitcoin, Ethereum is also an open-source, decentralized blockchain-based computing platform. The name of its founder 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 currency. Recently a hard fork has split Ethereum into two halves, Etherem (ETH) and Etheriem 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 released under the MIT/X11 license in October 2011 by Charles Lee who was previously a Google Employee.

Bitcoin has a big hand behind its creation and many of its features are dangling from Bitcoin. Litecoin's block generation time is 4 times less than that of Bitcoin. Therefore, the transactions in this are completed very quickly. In this, the Scrypt algorithm is used to do mining.

4. Dogecoin (Doge)

The story of the formation of Dogecoin is quite interesting. It was compared to a dog to mock Bitcoin, which later took the form of a cryptocurrency. The name of its founder is Billy Markus. Like Litecoin, Scrypt Algorithm is also used in this.

Today the market value of Dogecoin is more than $197 million and it is accepted in more than 200 merchants all over the world. Mining in this also happens very quickly as compared to others.

5. Faircoin (FAIR)

Faircoin is part of a much larger grand socially-conscious vision which is a Spain-based co-operative organization also known as Catalan Integral Cooperative, or CIC.

It uses the blockchain technology of Bitcoin, but with a more socially-constructive design. Like other cryptocurrencies, Faircoin does not depend at all on mining or minting new coins.

But instead they use certified validation nodes, or CDNs, for block generation. To verify coins in Faircoin, 'proof-of-cooperation' is used in lieu of proof-of-stake or proof-of-work.

6. Dash (DASH)

Its earlier names were XCoin and Darkcoin, Dash, meaning 'Digital' and 'Cash'. It is an open source, peer-to-peer cryptocurrency similar to Bitcoin.

But it has more features than Bitcoin such as 'InstantSend' and 'PrivateSend'. In InstantSend, users can easily complete their transactions, while in PrivateSend the transaction is completely safe, where great importance is given to the privacy of the users.

Dash uses an uncommon algorithm called 'X11' whose specialty is that it becomes compatible with very less powerful hardware, so that more and more people can mine their currency themselves. X11 is a very energy efficient algorithm, which consumes up to 30% less power than Scrypt.

7. Peercoin (PPC)

Peercoin which is completely based on the Bitcoin protocol and in which many source codes are found in both. In this, to verify the transaction, not only the Proof of Work is relied upon but also the Proof of Stake system is also taken into consideration.

As the name suggests, Peercoin is also a peer-to-peer cryptocurrency similar to Bitcoin, in which the source code has been released under the MIT/X11 software license.

Peercoin also uses the SHA-256 algorithm similar to Bitcoin. And it requires very little power to do transactions and mining.

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) which runs its own Cryptocurrency which is also known as Ripples (XRP).

It is very much and famous Cryptocurrency and has an overall market cap of around $10 billion. According to their officials, Ripple provides users with “secure, instant and nearly free global financial transactions of any size and without any chargebacks.

9. Monero (XMR)

It is actually born from the fork of Bytecoin in the year 2014 and since then it has been of famous profit. This cryptocurrency works in all systems such as Windows, Mac, Linux, Android, and FreeBSD.

Like Bitcoin, Monero also focuses on privacy and decentralization. The most important difference between Bitcoin and Monero is that high-end GPUs are used in Bitcoin, whereas consumer-level CPUs are used in Monero.

Who made it and why?

Regarding this, Kshitij points out that a lot of people believe that cryptocurrency was started by Satoshi Nakamoto in 2009, but it is not so. Even before this, many investors or countries had worked on digital currency. 

The US created in 1996 prime electronic gold, gold that could not be kept, but could be bought from other things. Although in 2008 it was banned. Similarly, in the year 2000, the Netherlands had linked cash to smart cards to fill petrol.

Bitcoin Most Expensive Virtual Currency

Simply put, cryptocurrency is a digital cash system, which is built on computer algorithms. It stays online only in Digit form. There is no control of any country or government on this. Initially it was declared illegal. 

But later due to the increasing popularity of Bitcoin, it has been legalized in many countries. Some countries are even bringing their own cryptocurrencies. Bitcoin is the most expensive virtual currency in the world.

How does Cryptocurrency work?

The popularity of cryptocurrency currencies has increased over the past few years. They are used through blockchain software. These digital currencies are encrypted ie coded. It is managed through a decentralized system. 

In this, each transaction is verified by digital signature. Its records are kept with the help of cryptography. Kshitij explains that buying through this is called Cryptocurrency Mining because every information has to be created digitally in the database. Those who do this mining are called miners.

To understand more in simple language, cryptocurrency is a virtual currency based on blockchain technology which is secured by cryptography. All this work is done through powerful computers. Kshitij even says that it is almost impossible to copy its code.

How to trust cryptocurrencies?

Horizon says that people predicted that bitcoin would end around $180-$200. But with the mass adoption by the masses it is gaining more trust. In the last quarter, about $700 million dollars were added to the market cap of bitcoin. However, the price has almost more than doubled since September 2020.

Many countries are going to bring cryptocurrencies

Although it has been debated that this bubble is in space and can burst at any time, it has become more valuable with the widespread acceptance and entry by new investors. 

It has to be trusted because many countries are now considering bringing their own cryptocurrencies. Earlier the government was contemplating to ban it, but now it has seen softness.

Who are the Indian market players?

Bitcoin Wallet is very similar to our mobile wallet. Where we store our money and do transactions from it. WazirX, Unocoin, Zebpay are Indian companies that are in the business of bitcoin.

What is the WazirX Finder called?

Nischal Shetty, Founder and CEO of WazirX said in an interview, 'There is a lot of confusion about this in India right now. Because there is no regulation for this in the country. People get scared when they hear about it. In fact, a lot of things on the Internet are unregulated.

E-commerce including ola, uber are also unregulated. The most important thing for investors is that if not regulated, the chances of fraud and scam increase.

How to buy and sell crypto?

The answer to this question has also become easy now. Due to the increasing popularity, there are now many crypto exchange platforms in the market. In such a situation, it is quite easy to buy and sell cryptocurrencies like Bitcoin and Dogecoin in the country. 

Popular platforms include WazirX, Zebpay, Coinswitch Kuber and CoinDCX GO. Investors can also buy other cryptocurrencies such as Bitcoin, Dogecoin and Ethereum from international platforms such as Coinbase and Binance.

The most important thing is that all these shopping platforms are open round the clock. The process of buying and selling cryptocurrencies is also quite easy. All you need to do is sign up on these platforms. After this, after completing your KYC process, money will have to be transferred to the wallet. After that you will be able to shop.

What can be done with crypto?

The world's most expensive diamond has been bought with cryptocurrency in July. It has become clear from this that material things can also be bought from this in future. However cryptocurrencies cannot be printed in the room of notes and coins. But still it has its value. With Cryptocurrency, you can buy, trade and invest goods, but you cannot keep it in your vault. Nor can they be kept in the locker of the bank. Because it stays online in the form of Digits. It is also called digital money, virtual money and electronic money. Its value is much more than the physical currency. Some of the top cryptocurrencies are worth thousands of times more than a dollar.

Advantages of CryptoCurrency?

  • The chances of fraud in cryptocurrency are very less.
  • If we talk about Cryptocurrency, then they are more secure than normal digital payment.
  • In this, the transaction fees are also very less if we talk about other payment options.
  • Accounts are very secure in this because different types of Cryptography Algorithm are used in it.

Disadvantages of Cryptocurrency?

  • In cryptocurrency, once the transaction is completed, it is impossible to reverse it because there are no such options in it.
  • If your Wallet ID is lost then it is lost forever as it is not possible to recover it. In such a situation, whatever money you have in your wallet is lost forever.

what did you learn today

I sincerely hope that I have given you complete information about what is Cryptocurrency and I hope you people have understood about Cryptocurrency.

I request all of you readers that you also share this information in your neighborhood, relatives, your friends, so that there will be awareness among us and everyone will benefit a lot from it. I need your cooperation so that I can pass on more new information to you guys.

It has always been my endeavor that I should always help my readers or readers from all sides, if you people have any doubt of any kind, then you can ask me without any hesitation. I will definitely try to solve those doubts.

How did you like this article Cryptocurrency, do tell us by writing a comment so that we too can learn something from your thoughts and make some improvements.

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