The word Cryptocurrency might seem strange and unusual at first but the investors must remember that the world is being changing rapidly through technology. Not very long ago, the concept of smart phones was unimaginable. However, now it seems that they have become a most important and crucial part of the life. In the same manner cryptocurrencies have started to become an integral part of the life. More and more people are interested in them and there are many who have made a huge profit with them in a short amount of time.
What is Cryptocurrency?
The cryptocurrency in simplest possible word is the digitalized form of money. However, the currency is usually valued at a much higher rate than the fiat currency and therefore it is also used as an investment. Take for example Bitcoin. Bitcoin is currently valued at $52,000 per unit. The people who have been holding Bitcoin for a long time have managed to make about 250%-300% in profits. Cryptocurrencies can also be used like real money; there are many services and products that can be bought with digital currencies. A business that accepts cryptocurrency as a payment would be able to offer their goods and services in exchange for them.
How many types of Cryptocurrencies are there?
There are many different types of cryptocurrencies. The number is not is dozens or hundreds but thousands. It is not possible to list all different types of cryptocurrencies for a little while. There are many companies and crypto organizations that are launching their own digital tokens. One most common misconception that people have about digital currencies is that they think that Bitcoin is the first or the only cryptocurrency. There has been some earlier less successful versions of cryptocurrency before Bitcoin and at this time there are many more that are emerging in the markets.
What is a Blockchain?
A blockchain is the ecosystem where a cryptocurrency is present. It can be understood by the example of a word file and a computer. Just like a doc file is saved and run on a computer operating system. In the same manner, digital currencies need a space where they can be stored. The miner takes out these currencies from the blockchain and put them into the market for the benefit of the investors. The investors can also use the digital currencies with their digital wallets. However, to get updated status they should always be connected to the blockchain.
What are Crypto Exchanges?
Just like there are stock exchanges where traders can buy and sell shares as per their requirements. There are also crypto exchanges from where the investors can buy different types of digital assets like dodge coin, Bitcoin, safe moon etc. Coinstirs is one such crypto exchange service.
What Type of Digital Assets are not Secure?
If a person cannot afford to lose their invested money they should not put their money into something that is not recommended by the market. There are many types of currencies that are marked as shit coins that have no real value and on the other hand there are some digital assets with funny names like poo coins that should be avoided.
Martin has been following the crypto space since 2013. He is a passionate advocate for blockchain technology, and believes that it will have a profound impact on how people live their lives. In addition to being an avid blogger, Martin also enjoys writing about developments in the industry as well as providing useful guides to help those who are new to this exciting frontier of finance and technology.