What is cryptocurrency?
    Posted on 10/03/2022

New to cryptocurrency? Want to know all the basics regarding it or do you’ve any other questions to ask? Welcome to this short but informative page where we will try to brief everything about cryptocurrency.


Cryptocurrency is a type of digital money or virtual money – there are other digital currencies as well but so far is the safest one.


The high security of cryptocurrency makes it impossible to get your money hacked or double spends. The developers of Digital currencies have their base on Blockchain technology which is a distributed ledger forced by different networks taken from different computers.


A major feature of cryptocurrencies is that they are not usually issued by any central authorities – means they have no protection from the government.


How does cryptocurrency work?


The basic information you know now makes you wonder how it even works.


Crypto is made by a process similar to Mining gold but its way is quite smarter. In crypto, you don’t need to dig deep but to give cryptographic problems a solution. Cryptography has various puzzles or problems placed by the developer of Cryptocurrency.


In addition, to amaze you more, humans aren't going to solve the puzzles, however, the networks or the computers are going to do it.


“There are only two types of cryptocurrencies, called “proof of stake and proof of work” these precious words are spoken by the great crypto leader Nick Ranga.


The proof of work method has its base depended on crypto-specialized computers called mining rigs, challenging to become the first to solve multi-faced mathematical equations or problems, Known as hashes. These hashes become more and more difficult over time, which means the computers need to mine smart and fast.


It is hoped that Cryptocurrency will take over the world within a few years becoming the most common currency, so you can buy all daily life products from crypto-specialized.


Types of cryptocurrency


In the market may you have heard such different types of digital currencies but when it comes to crypto we can mention these on the top of the list.


1.     Bitcoin


Bitcoin is the most popular cryptocurrency in which a huge list of transactions and unique units are made by the compact mathematical puzzle solver. It operates as an independent central bank.


2.       Altcoins


Altcoins are usually known as all-crypto currencies, unlike Bitcoins. Altcoins have a high range of investors who make altcoins their all-crypto currencies and invest in a high range of mathematical puzzles.


3.       Ether


Ether gives investors access to pay for various transactions including computational processes. Ether can also be shared from one person to another and the production director can write smart and unique contracts.


Advantages


The most common thing which attracts investors in crypto is that crypto does not require any middle man or third parties such as production companies or banks. It gives investors 100% access to the direct transfer of funds between two parties. The transferred fund makes it even cheaper.


Cryptocurrencies are always more likely to offer great ease of payment and compact volatility as it is adopted in high amounts. Cryptocurrencies allow investors to transfer from mobile payments as well.


Advocates of crypto state that it can easily reduce the exchange risk rate, because at that time all bitcoins have the same importance – unlike being different-rated in different nations.


Disadvantages


Not caring about the vitality of cryptocurrency can be the biggest mistake ever, just like all other currencies crypto also has its chances of making the value go high and low. Vitality cannot be counted as a benefit as the more varies the more crypto holders will use it.


Cryptocurrencies have a high range of copy and non varied coins which can make your computer crash and be used for illegal activities.


This is all for this digital blog post if you’ve any other question regarding this topic? Please free to comment below.

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