A cryptocurrency (or “crypto”) that can also be termed as a virtual currency that can be used to buy goods and services on multiple platforms and its popularity is increasing day by day. Much of the interest in these virtual currencies is to trade for profit, with speculators at times driving prices skyward. Many companies have introduced their own Cryptocurrencies, often called tokens, and these can be traded specifically for the good or service that the company provides. In simple language, cryptocurrency is like tokens or E-vouchers you have to buy with real currency so you can use as a trade for buying goods and services.
Many of the cryptocurrencies are Bitcoin, Ethereum, Litecoin, Cardano, Eos.
Origin and security of crypto
The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network.
Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions of this virtual currency. The major role of the significance of this technology is its security. Blockchains are the organizational methods for ensuring the integrity and safety of transactional data are an essential component of many cryptocurrencies.
Criticism of the cryptocurrencies
Despite having the popularity the Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency. According to many investors and economists Cryptocurrencies may go up in value but thet see them as mere speculations, not real investments.
market prices for cryptocurrencies are based on supply and demand, the rate at which a cryptocurrency can be exchanged for real currency can fluctuate widely depends on the demand for the crypto currency. Cryptocurrencies are thus considered by some economists to be a short term gains or speculative bubble.
Types of crypto currency and scopes of investment in them
There are thousand of cryptocurrencies issued in the market and are being traded. The total market cap of the cryuptocurrenceis are in trillions and some popular cryptocurrency such as bitcoins market capital value is in billions.
Some of the post popular crypto currencies that are having a demand in the market
|Bitcoin $735.3 billion |
Ethereum $324.2 billion
Tether $61 billion
Binance Coin $57.5 billion
Cardano $54.6 billion
XRP $46.5 billion
Dogecoin $44 billion
Polkadot $22.1 billion
|Shib Inu $3.1 billion|
The most popular cryptocurrency, Bitcoin, has had the various price moves this year, reaching nearly $65,000 in April and losing nearly half its value in May. Bitcoin was issued in 2009 and later in 2011 started with an intial value of 1$.
1. Bitcoin (BTC)
Bitcoin has been in the market for the longest of any cryptocurrency. Its price, market cap and volume is much higher than any other investment options in the crypto. There is thousands of other cryptocurrencies on the market and Bitcoin represents 40% of the cryptocurrency market cap. Many businesses already accept Bitcoin as payment, which makes this cryptocurrency a smart investment but its prices fluctuates a lot and can benefit both long term and short term investements.
2. Ethereum (ETH)
Ethereum is different from Bitcoin because it isn’t only a cryptocurrency. It’s also a network that allows developers to create their own cryptocurrency utilizing the Ethereum network. Etehreum comes second after the bitcoin and before all other crypto options
3. Binance Coin
Binance is one of the few cryptocurrencies to reach its peak after 2017. During that year price of all cryptocurrencies rose, reaching a peak before staying constant and decreasing in value. Unlike other cryptocurrencies, Binance Coin continued a slow but consistent trend upward after 2017. Because of its performance, Binance Coin has proven to be one of the more stable investment options, posing fewer risks.
4. Tether (USDT)
Tether is the most stable of all cryptocurrencies because it is tied to the U.S. dollar. For each unit of Tether, there is one dollar reserved in the Federal Reserve Bank. This makes Tether a great option for investors who want to invest in the crypto market.
The Cardano network has a narrow scale than other which is also appealing to investors for several reasons. It takes less energy to complete a transaction with Cardano as compared with a larger network like Bitcoin. which means transactions are faster and cheaper. It is more adaptable and more secure.
There are many platforms and wallets where cryptocurrencies can be bought and sold which are completely safe and secure. Some of the popular and convenient platforms are-
- WazirX. S
- CoinSwitch Kuber.