1. What is cryptocurrency?
crypto is also known as Digital currency can be used to buy goods and services. Cryptocurrency uses an online ledger with strong security or strong Cryptography for securing online transactions. These are mostly used for trading to earn a profit.
In other words, we can say that a Cryptocurrency is an asset that is in the digital form (does not exist in physical form like paper money), which is design to work as a medium of exchange.
Its ownership records are stored in the form of a computerized database.
2. History of cryptocurrency?
The first cryptographic electronic money called “ecash”. It conceived by an American Cryptographer (David Chaum) in 1983.
Which later on implemented in 1995 through “Digicash”, was the early form of cryptographic electronic payments that required user software. Also, encrypted keys (Passwords /Pin) to withdraw notes from a bank.
Description of “b-money” was published in 1998 by Wei Dai, which was like electronic cash system. After that “bit gold” was described by Nick Szabo, was also an electronic currency system.
“Namecoin” was created in April 2011 and then “Litecoin” was released and after that “Peercoin” was created.
3. How many types of cryptocurrencies?
According to a market research website, there are more than 7000 different cryptocurrencies that are trading publicly. Each cryptocurrency has its own worth price which increases or decreases according to its market rates.
Other popular cryptocurrencies are as Under:
|Sr. No||Name of Cryptocurrency|
4. Why cryptocurrencies are so popular?
There are so many reasons of popularity of cryptocurrencies. Below are some of the most popular.
- Supporters see cryptocurrencies such as “Bitcoin” as the currency of the future and are eager to buy them now, before they become more valuable.
- Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation.
- Some supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems.
- Some supporters like cryptocurrencies because they’re going up in value and have no interest in the currencies long-term acceptance as a way to move money.
5. How to buy cryptocurrency?
Some cryptocurrencies like Bitcoin can be purchased with United State dollars. While some require to pay with cryptocurrencies to buy another.
As cryptocurrencies have no physical state (like normal currency) and are in digital forms, buyers needs a “wallet”. It is basically online app which hold cryptocurrencies. Buyer create an account on an exchange where real money can be transfer to buy cryptocurrencies.
Digital currency can be used to buy goods and services. Cryptocurrency uses an online ledger with strong security or strong Cryptography for securing online transactions
Do You Know: there are more than 7000 different cryptocurrencies that are trading publicly. Each cryptocurrency has its own worth price which increases or decreases according to its market rates
cryptocurrencies like Bitcoin can be purchased with United State dollars. While some require to pay with cryptocurrencies to buy another
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