What is Cryptocurrency?
Cryptocurrency refers to the technology that acts as a medium for facilitating the conduct of the different financial transactions which are safe and secure and it is one of the tradable digital forms of the money allowing the person to send or receive the money from the other party without any help of the third party service.
If you would like to know what cryptocurrencies are all about, you should know the fundamental features of them briefly.
Let’s have a look –
- Cryptocurrencies are very secure: They are secured by the cryptography codes. And they are locked by using a public cryptographic system. Every owner has their own private key. Other than the owner, no-one can get access to that private key. And cryptography used in creating this private key is so strong and the numbers are so huge, it’s almost impossible to break. That’s why cryptocurrencies are pretty secure and can be used without any fear of security.
- Transactions in cryptocurrencies are irreversible: You may say one of the disadvantages of them is the irreversibility of transactions. When you use cryptocurrency like bitcoin, you need to give confirmation before the transaction ever occurs. Once you give the confirmation, the transaction would be initiated. And no-one in the world would be able to stop that transaction, yes not even the Satoshi Nakamoto himself (or themselves). So, to deal with the transactions in cryptocurrencies, you need to be much more responsible before you confirm a transaction.
- There is no need for permission: While using it, you don’t need to take permission from anybody. That means there would be no gatekeepers who will stop you from using the currency. All you need to do is to install free software and use it. This specific feature gives users a lot of freedom and they are able to use cryptocurrencies as they wish.
- Super-fast: Another great feature of it is that they are super-fast. If you initiate a transaction, it is immediately caught up in the network and it is confirmed just within two minutes of time.
- These currencies don’t care about the specific location: Cryptocurrencies don’t care at all about the owner’s physical location. You can send cryptocurrency to your relative down the street or you can send the same to a friend living in another part of the world. And the transactions would take the same time and would be treated similarly.
- Real-world identities can be hidden: Many people are scared to death when they need to share their real identities online. In the case of cryptocurrencies, you don’t need to provide your real-world identities. All you need to have an address that has around 30 characters. And you would be able to access the benefits of them easily.
Top 5 Cryptocurrency
If you would like to deal with cryptocurrencies, it’s important that you.
#1 – Bitcoin
Bitcoin is everywhere these days and is currently number 1 in the list. You can learn more about Bitcoin – advantages disadvantage here.
#2 – Ethereum
Ethereum is second in the list. This is one of most talked about cryptocurrencies in present times. After bitcoins, ethereum has taken the place of the largest growing cryptocurrency in the world. In the year 2017, ethereum has grown around 500% whereas bitcoins have grown around 1000%. Ethereum is created by Vitalik Buterin who is one of the most sought after names in this industry. Learn more about Ethereum
#3 – Litecoin:
This is a possible alternative to bitcoin. It was created in the year 2011. And it was created by Charlie Lee. After bitcoin, it is the third in terms of the time and duration of cryptocurrencies. Even if litecoin didn’t get as much attention as it deserves, here is the most important that needs our attention – litecoin is much faster than bitcoin and the transaction fees are almost nil. Learn more about Litecoin
#4 – Ripple
Ripple works similar to Bitcoin or Etherium. You can send the payments in real-time using distributed financial technology. The difference here is that it works with banks and allowing sending of money. Learn more about Ripple
Find out the differences between Ripple vs Litecoin
#5 – Dash
Dash was launched in 2014 and has grown to become one of the largest peers to peer network of master nodes. As a result, Dash is able to provide more capacity to users as well as a secure environment. Learn more about Dash
Uses of Cryptocurrency
It doesn’t make sense to know about something if you don’t know any practical use of that particular subject. This is the same for cryptocurrency as well. That’s why let’s have a look at some of the practical uses–
- Donation: Do you worry about making a donation, but not reaching the right receiver? With its use you would be able to make the donation without any hassle since it is a peer to peer network and is very secure and fast.
- Higher education: The University of Nicosia is offering higher education and they are the first university in the world to accept bitcoins as fees. So if you have your bitcoins ready, you can get a higher education quite easily.
- Travel: If you want to travel the world and all you have are bitcoins, then be ready for the treat. Go to travel websites and book your flights, cars, cruises.
This has been a guide to what is Cryptocurrency and it’s meaning. Here we discuss top 5 cryptocurrencies along with their features and uses. You may learn more about financing from the following articles –