What is Cryptocurrency? Full Details

Cryptocurrency is a digital currency which does not depend on the central government, or any other government bank to maintain them, these digital currencies are developed to work as medium of exchange through computer networks. Cryptocurrency are not available in physical form, they only exist digitally.

This digital currency was built on blockchain technology that only comes in digital form and is a digital money that can be only traded online, opposite to its name Cryptocurrency is not considered as a true currency, they are classified in various different forms like commodities, securities, as well as currencies. This currency is encrypted to authenticate and protect your transaction.

There are thousands of Cryptocurrency available across the globe, Cryptocurrency are also called with different names in different places like crypto-currencycrypto, or coin. If you are new to this field and looking for knowledge about this digital currency, then read this article till last to get complete knowledge about Cryptocurrency.

What is the use of Cryptocurrency?

As I said earlier Cryptocurrency is digital money that works on blockchain which is a distributed public ledger. In Cryptocurrency all records of transaction updates are clenched with currency holders. These online currencies are created with a method called mining, not like coal mining or gold mining.

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In this case mining is referred to as a method in which computers are used to solve very complicated mathematical problems to generate these coins. You can buy Cryptocurrency on crypto exchange or through a broker after that store them till its price increases or till you find a need to spend them, you can spend Cryptocurrency by using cryptographic wallet.

Nowadays you can buy various different things by using Cryptocurrency like bonds and stocks of companies, you can also buy event tickets, luxury items like cars and watches, insurance, and lots of other different things. Cryptocurrency are becoming very popular from the last few years though the first Cryptocurrency was introduced in 2009, which was named as Bitcoin.

Type of Cryptocurrency

There are thousands of different types of Cryptocurrency available across the globe. But most of the people have only heard about Bitcoins, but it is not the case that there are many such currencies available in the market that are better than Bitcoins, here I am going to tell you about Bitcoin and all its alternate coins that you can invest your money in.

Here I have mentioned some of the biggest Cryptocurrency from around the world; I have selected these coins on the basis of their market value, and their recent dollar value. If you want to invest in Cryptocurrency then here are some of the best coins to throw your money on.

  1. Bitcoins (BTC)

When you talk about Cryptocurrency, Bitcoin is the name that strikes in everyone’s mind, because recently Bitcoin gained huge popularity across the globe and every big brand started accepting Bitcoin as mode of payment for their items, this raised the value of BitcoinBitcoin was developed by Satoshi Nakamoto, in 2009.

Bitcoin holds a market cap of around 829 billion dollars and the price of each coin is 43558 billion dollars. That makes it one of the biggest Crypto coins across the globe to invest in.

  1. Ethereum (ETC)

Ethereum is second most popular Cryptocurrency that you ever here about after Bitcoin, it is becoming very popular and its market value is rising very rapidly, if you want to invest your money for short term and wish to earn more profit, then Ethereum is the best option available for you to invest your money in.

Recent price of Ethereum is around dollar 3219, and it carries a market cap of around 338 billion dollars.

  1. Litecoin (LTC)

Litecoin is among the first Cryptocurrency to be introduced in the crypto world after Bitcoin, these coins were created by Charlie Lee, who was a former engineer at Google. Litecoin is based on an open source global network which is not operated by any central authorities. Lots of big merchants and industries accepted Litecoin as their payment method,

Litecoin is in the stand at 21st position when it comes to market cap, it has makerkt value of above seven billion dollars, while price of each coin is nearly 106 dollars, It has one of the fastest transaction confirmation time among all other crypto coins.

  1. Cardano (ADA)

Cardano (ADA) is an Ouroboros proof-of-stake currency developed by a bunch of engineers, mathematicians, and Cryptography experts. Cardano was co-founded by Charles Hoskinson, he was also one of the members who created Ethereum. It comes with better blockchain technology as compared to various other Cryptocurrency.

Cardano stands at 8th position when it comes to market cap. It has a market cap of around 26.9 billion dollars, and each token of Cardano is priced for 0.80 dollar.

  1. Dogecoin (DOGE)

Dogecoin is also called a memecoin, because this coin uses the image of viral dog Shiba Inu, due to this Dogecoin got huge popularity on social media across the globe. Many major company accepted Dogecoin as a mode of payment,

Elon Musk was the first person to accept Dogecoin as mode of payment for SpaceX and Tesla, and other companies that accept Dogecoin as payment are Dallas MavericksKronos, and so on. Dogecoin was created by Billy Markus and Jackson Palmer, in 2013.

Dogecoin is the 13th largest Cryptocurrency in the world, it has a market cap of around 15 billion dollars and the price of a single coin is around 11 dollars.

  1. Tether (USDT)

Tether (USDT) is one of the most stable Cryptocurrency in the world, and it is one of the oldest Cryptocurrency among other stable coins. Due to its stability people usually trust a lot on Tether to invest their money. This website also allows you to convert your coins more easily and quickly as compared to other crypto coins.

It was launched in the beginning of 2014, and soon after its launch it attracted lots of investors to buy its coins, and till march 2014 it became third largest Cryptocurrency with a market cap of 80.1 billion dollar and each coin cost only 1 dollar.

  1. Monero (XMR)

Monero (XMR) is one of the most secure and untraceable crypto coins available on the internet, this Cryptocurrency is untraceable and is completely decentralized to keep it free from interruption by government authorities. XMR was officially launched in 2014, and since then it gained a huge number of users due to its privacy and security.

Investment for development of Monero (XMR) is done with donation and this currency is community driven, it is basically used in illegal trade by criminals and to make huge money transfers by businessmen to save their tax which is imposed by the government on them.

Monero (XMR) was launched in March 2014, and soon after it started attracting people due to its policy, it has a market cap of around 3.3 billion dollars and value of each coin is around 181.40 dollars.

  1. Stellar (XLM)

Stellar (XLM) is an open blockchain network created by Jed McCalebJeb McCaleb is also one of the founding members of Ripple Labs. Stellar (XLM) is mainly used for huge transactions between two big industries or between banks and investors to avoid transaction charges and intermediates.

But it is also an open currency which can be used by everyone, Stellar (XLM) also allows you to make Cross border transactions for free without any intermediate charges. Stellar uses Lumens as its currency, so you have to use Lumens to make transactions on its network.

How to buy Cryptocurrency?

If you are one of those users who is new to this world of Cryptocurrency, then you will find it very complicated at first to choose and buy your favorite currency, but it is not the case it is very easy to buy Cryptocurrency and make huge profit through them. To start investing and buy Cryptocurrency you have to just follow the simple steps shown below.

Where to buy Cryptocurrency?

There are two ways to buy Cryptocurrency, first one is through a broker and other one is through Crypto exchange, both come with some or the other advantages and disadvantages. Here I have covered both the ways, so that you get a complete idea of them before buying your Cryptocurrency from them.

  1. What is a Crypto Broker?

If you are a beginner and are going to buy Cryptocurrency for the first time, then Crypto Broker can make it very easy for you to choose and buy the best coins. But Crypto Brokers act as intermediate and you have to pay charges to these brokers when you Cryptocurrency through them.

When you buy Cryptocurrency through brokers, you have to be extra careful. Because some brokers can also be scammers and you can end up losing your money to them. Two of the best brokers from which you can buy your Cryptocurrency are Robinhood and SoFi.

But when you buy Crypto coins from these brokers you cannot move your holdings out of your account, and it is also not safe to keep all your holdings in your account because it can be easily hacked. A professional trader uses Crypto wallets to provide more security to their holdings.

  1. What is Crypto Exchange?

Crypto Exchange is one of the safest platforms to buy your Cryptocurrency. In this you can exchange and trade your Cryptocurrency with other users, and can also buy new coins from the person by making a deal with them. These Crypto Exchange platforms will also help you to convert your holdings in US dollars and send them to your account.

These Platforms also provide insurance to your holdings to increase their security, it is better to choose the best platform that provides good security to your holding whether you keep them for a short time or for a long time. If you are new then it is better to choose Crypto Exchange platforms rather than buying your currency from brokers.

So now you know everything about both this method to buy your Cryptocurrency, now it’s on you to choose the way that you like among this to buy your Cryptocurrency. Once you decide where to buy your currency from, it’s time to create an account. To create an account follows these given steps.

How to create your account?

After choosing the platform from which you want to buy your Cryptocurrency. It’s time to create your account, to create an account to crypto broker or crypto exchange, you have to follow the simple steps given below.

  1. First you have to download the app or go to the particular website.
  2. After that click on create a new account, then it will ask to enter your details, for example name, address, phone number etc.
  3. Once you fill this application it will ask for your Gmail account.
  4. Once you enter your Gmail ID, it will ask for your ID like driving license or aadhar card for security.
  5. After that it will ask you to click a selfie to verify your face with the documents provided.
  6. At the end it will ask you to upload a picture of your signature.
  7. That’s it your account will be activated within 24hrs after completing the process.

Once all these formalities get completed it’s time to think about the process of depositing money on your newly created Crypto account, for this follow the steps that I have shown below.

How to fund your Crypto account?

To fund your Crypto account you can simply link your bank account to your Crypto account, it is the easiest to do, other than that you can also make payment for your Crypto coins by UPI apps, credit card, and debit card. But using a credit card will also impose tax.

You have to pay 5% of your purchase to the bank as a tax, which can be very costly, so it is better to link your bank account with your crypto account to stay away from these unnecessary taxes.

How to place orders for Cryptocurrency?

Once all the process gets complete you are ready to make your first purchase, for that you need to have knowledge about crypto coins, I have mentioned some of the best crypto coins above in this article which are best to invest as a beginner.

Once you decide the coin that you want to invest in, search for it by its ticker symbol, enter this code name and that currency will appear on your screen, click on it, and now choose how many coins you have to buy and make the transaction.

How to store Crypto holdings?

Cryptocurrency do not depend on central authorities, and so are not protected by them. Due to this Cryptocurrency is more prone to theft and scam by hackers. So you have to take lots of security measures to hold your Cryptocurrency on your account. Some of the safest ways to store your holding is as shown below.

  1. Leave the crypto on exchange

When you buy Crypto coins they will be automatically stored on your accounts wallet, they are somewhat secure so if you trust your crypto exchange then you can leave your coins on it, but when you try to move them to any other place you have to pay fees for the transaction.

  1. Hot wallets

Hot wallet is another place, where you can store your holdings, but it is not that secure and can easily be hacked. Because it is an online wallet and works on internet-connected devices.

  1. Cold wallets

Cold wallets are the safest option available for you to store your holdings on, as this wallet does not connect to the internet it is unshakable. It works as a USB drive where you can store all your holding till you want without any worries of theft.

Conclusion

In this article I have tried to cover all possible topics to give you a basic idea about trading in Cryptocurrency, other than that you have a lot to learn about this market. And the only way to do so is by starting trading. Any passing time you will get complete knowledge about Crypto trading and will become professional.

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