What Is Crypto Currency?? Things to know before investing in Cryptocurrency - BlogsByHuzaifa

 

1. What is cryptocurrency?

A cryptocurrency is a form of payment that can be exchanged online for goods and other services. Usually companies issue their own currencies, often called tokens, and casino chips, and these can be traded specifically for a need that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the products you have. That's the real work of Cryptocurrencies.

What Is BlockChain? Cryptocurrencies work using a technology called the blockchain. Blockchain is a decentralized technology spread across many computers that may use to manage and to save or record transactions. Part of the appeal of this technology is its security.

2.How many cryptocurrencies are there? What are they worth?

More than 6,700 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, which is a market research website. And cryptocurrencies continue to profitable, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on Feb. 18, 2021, was more than $1.6 trillion, according to CoinMarketCap.com, and the total value of all bitcoins, the most popular digital currency has reached about $970.6billion.

Best cryptocurrencies by market capitalization

These are the 10 largest trading cryptocurrencies by market capitalization as tracked by CoinMarketCap, a cryptocurrency data, and analytics provider.

Cryptocurrency	Market Capitalization
Bitcoin	$970.6 billion
Ethereum	$222.3 billion
Tether	$33.1 billion
Binance Coin	$30.5 billion
Cardano	$28.3 billion
Polkadot	$28.1 billion
XRP	$24.4 billion
Litecoin	$15 billion
Chainlink	$13.3 billion
Bitcoin Cash	$13.1 billion

(Data Collected on 20-Feb-2021)

3.Why are cryptocurrencies so popular?

Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular ones:

   

Supporters see cryptocurrencies such as Bitcoin as the currency of

the future and are racing to buy them now because if the currency raises more than as it is now they won't buy it.

     

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

      

Difference Among Cryptocurrency & Bitcoin:

As we know everybody is curious that what is cryptocurrency? what is the role of Bitcoin in it? And most important what is asked by people about the difference between Bitcoin & Cryptocurrency? To understand the scenario here's some important point that we have figured it out:

The basis for comparison between Bitcoin vs Cryptocurrency	Bitcoin	Cryptocurrency
Main Aim	To simplify and increase the speed of transactions without much government restrictions.	To provide low cost, safe and secure transactions.
Trade	Bitcoin is limited to trading by using it as a currency.	There are a lot of cryptocurrencies that are used for trading as well.
Popularity	Bitcoin is the most popular bitcoin.	The number of cryptocurrencies have increased but their share is still less than Bitcoin.
Strategy	Bitcoin focuses on lowering the cost of influencers and reduce the time of transactions but is less flexible,	Cryptocurrency aims at the exchange of goods and services is a safe and secure environment with very little or no government and middleman interference.

Conclusion:

Bitcoin is not a formally accepted medium of payment in all countries but people around the world use it for various kinds of transactions. Since it is not physically present, it should be very safe and secure and one of the best ways to do that is by using Blockchain.
And On the other hand, Cryptocurrency aims at the exchange of goods and services in a safe and secure environment with very little or no government and middleman interference. And also To provide low-cost, safe, and secure transactions.

4. Are Cryptocurrencies a good investment? Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments.

The reason?

Just like real currencies, cryptocurrencies generate no cash flow,

so for you to profit, someone has to pay more for the cur
recency than you did.

That’s what’s called “the greater fool” theory of investment. Contrast that to a well-managed business,

which increases its value over time by growing the profitability and cash flow

of the operation.

5.How do I buy cryptocurrency?

While some cryptocurrencies,

including Bitcoin, are available for purchase with U.S. dollars, others require

that you pay with bitcoins or another cryptocurrency.

To buy cryptocurrencies,

you’ll need a “wallet,” an online app that can hold your currency. Generally,

you create an account on an exchange, and then you can transfer real money

to buy cryptocurrencies such as Bitcoin or Ethereum. Here's more on

where you can create both a wallet and buy and sell Bitcoin and other

cryptocurrencies. Also, a growing number of online brokers offer

cryptocurrencies, such as eToro, Tradestation, and Sofi Active Investing. Robinhood

offers free cryptocurrency trades (Robinhood Crypto is available in most, but

not all, U.S. states). 6.Are cryptocurrencies legal?

There’s no question that they’re legal in the United Stat

es, though China has essentially banned their use, and ultimately whether they’re legal depends on each individual country. Cryptocurrencies as an opportunity to bilk investors. As always, buyer beware.

Also, be sure to consider how to protect yourself from fraudsters who see

What online brokers offer cryptocurrencies?

Of the online brokerages and cryptocurrency exchanges that NerdWallet reviews, the following currently offer cryptocurrencies.

Currencies	Available for:
Coinbase	Access to buy and sell more than 30 cryptocurrencies.
eToro	Trading platform with access to 15 cryptocurrencies.
Robinhood*	Seven cryptocurrencies including Bitcoin, Bitcoin Cash, and Ethereum.
SoFi Active Investing*	They Offer three cryptocurrencies for trading: Bitcoin, Ethereum, and Litecoin.
TradeStation*	Offers trading for five cryptocurrencies, including Bitcoin, Bitcoin Cash, and Ethereum.

Should you buy cryptocurrency?

Cryptocurrency is an incredibly speculative and volatile buy. Stock trading of established companies is generally less risky than investing in cryptocurrencies such as Bitcoin.

So if you like the content and the knowledge about cryptocurrency, just comment below and let us know your thoughts.