One of the most important reasons for blockchain technology to become so popular is the number of increasing cryptocurrencies. Bitcoin is one term that pops up in the mind of almost every person of this era when they overhear about cryptocurrency. It is not a weird thing because bitcoin was the only crypto that helped spark the whole cryptocurrencies market. But bitcoin is just one kind of cryptocurrency.
A few people are still not familiar with Bitcoin Investment. In this post, you will learn everything you need to be familiar with bitcoin which will be best for you to know before you start investing in digital bitcoin currency.
Table of Contents
Introduction of cryptocurrency!
Cryptocurrency is the digital form of currency that exists only on the internet. It makes use of cryptography for making the transaction fast, secure and anonymous. The impressive fact about cryptos is that they don’t have any central unit or authority which regulates them. Instead, they have a decentralized system of work that helps record the transaction and issue the new units to the users, which is called a blockchain.
We can say that the digital mode of payments doesn’t depend on the banks for verifying the transactions. It is a p2p system that helps by enabling any person in this world to make the payments. When you make the transaction through the digital currency, it gets recorded on the public ledger, known as the blockchain. It makes use of encryption for verifying the transaction of bitcoin. It is a highly advanced coding tool that helps store and transfers the data between the blockchain and the crypto wallets.
Working system of cryptocurrency!
The cryptocurrency operates on the blockchain, which records all the transactions. The units of the digital currency are created with the process of mining. It involved the high-power computer in solving the complex math’s puzzle for generating the coins. The users can easily purchase cryptocurrencies from various sources and store them in digital wallets. If you own the digital currency, then it means you do not owe anything which has a physical existence. The only thing you have is the key that allows you to make the transfers without involving any middleman.
Some examples of cryptocurrency!
There are plentiful examples of cryptocurrency, and here we will discuss the best known.
Bitcoin!
It was the initial digital currency founded in 2009. It is the most trustworthy investment option in which millions of people are investing their money. The inventor of this digital currency is Satoshi Nakamoto, whose individuality has been unidentified.
Ethereum!
Ethereum is the blockchain platform with its digital currency known as the Ether or Ethereum. It is the other most significant digital currency behind bitcoin. The unique features of Ethereum make it a remarkable cryptocurrency to invest your money in. Moreover, it is also very famous for its intelligent contracts features that people worldwide appreciate. This crypto came into reality in the year 2015.
Litecoin!
Litecoin is very much like bitcoin. But this crypto is much faster in making transactions than bitcoin. In addition, it helps in processing the payments in the least time possible, which allows you to make further transactions.
Ripple!
It is the decentralized ledger system that came into existence in 2015. You can use this crypto for tracking different kinds of transactions. This cryptocurrency works with different kinds of banks and financial institutions. The cryptocurrencies that are not bitcoin are collectively called altcoins to distinguish them from bitcoin.
Is buying cryptocurrency safe?
Cryptocurrencies are generally created by using the blockchain. The technology makes Bitcoin transactions and is logged in the system of blocks. The process is quite technical, but it helps make safe and secure transfers. It is challenging for hackers to tamper with blockchain technology. Moreover, bitcoin transactions need two-factor authentication, which is one step further to ensure the coins’ safety. The securities are high, so it doesn’t mean that hacking the cryptocurrency is not possible. There are still some scammers who always wait for you to make a little mistake so that they can steal your coins.
