What is Cryptocurrency

Cryptocurrency is also known as 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 to purchase Goods and Services through the Internet 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 Cryptocurrencies. Here I am going to tell you about some other Cryptocurrencies about which you may already know.

How you can 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 for many years. You can also invest your money in it after research.

 Types of Cryptocurrencies

There are many Cryptocurrencies but there are only a few of them that are performing well and which you can use in investing apart from Bitcoin.

1. Bitcoin (BTC)

If we talk about Cryptocurrency and not talking about Bitcoin then it is not possible at all. As we all know that 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 only online. It is a de-centralized currency which means that the government or any institution does not have any hand on it.

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 transaction in this is 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 the privacy of users is given great importance.

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 account.

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 it 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 made a 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.

One thought on “What is Cryptocurrency

  • September 7, 2021 at 1:47 pm
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    I’ve purchased bitcon for 2 years back and it’s now giving me some decent returns.

    Reply

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