CryptoCurrency Facts, Myths, Tips, and Tricks
What is Cryptocurrency?
As of 2017, cryptocurrency has been used as a decentralized alternative to traditional fiat currencies (which are usually backed by some central government) such as the US dollar (USD).
What is a cryptocurrency address?: A public address is a unique string of characters used to receive cryptocurrency. Each public address has a matching private address that can be used to prove ownership of the public address. With Bitcoin the address is called a Bitcoin address. Think of it like a unique email address that people can send currency to as opposed to emails.
The History of Cryptocurrency
The first decentralized digital cryptocurrency can be traced back to “Bit Gold,” which was worked on by Nick Szabo between 1998 and 2005. Bit gold is considered the first precursor to bitcoin (although another notable mention in the history of digital currency was e-gold; e-gold notably stared in 1996 before Bit Gold or Bitcoin).
Next, in 2008, Satoshi Nakamoto (an anonymous person and/or group) released a paper detailing what would become Bitcoin.
Bitcoin became the first decentralized digital coin when it was created in 2008. It then went public in 2009.
Investment and trade opportunities in digital cryptocurrency have been constantly rising over the past few years. The last month saw sudden boom in the trade of cryptocurrency. These blockchain-based financial instruments have been giving back good returns ever since they were first introduced. Many countries, including India, have thus seen the growth of exchange platforms for assisting investors through the complexities of digital currency trading and letting them know how to trade cryptocurrency from various platforms. Cryptocurrency can be assumed as digital gold. Cryptocurrency gained importance as this money is considered to be free from political influence. Cryptocurrency preserve and increase the value of money over time. While Bitcoin remains by far the most famous cryptocurrency you can also trade cryptocurrency in other forms as well.
As of 2017, Bitcoin is the most commonly known and used cryptocurrency (with other coins like Ethereum and Litecoin also being notable). Given the popularity of Bitcoin as well as its history, the term “altcoin” is sometimes used to describe alternative cryptocurrencies to bitcoin (especially coins with small market caps).
As of January 2015, there were over 500 different types of cryptocurrencies – or altcoins – for trade in online markets. However, only 10 of them had market capitalizations over $10 million.
As of September 2017, there were over 1,100 cryptocurrencies and the total market capitalization of all cryptocurrencies reached an all-time high surpassing $60 billion! Then, by December 2017, the total market cap reached $600 billion (a multiple of 10 in only two months).
In other words, although the future is uncertain, cryptocurrency seems to be more than just a fad. Here in early 2018 cryptocurrency is shaping up to be a growing market that (despite its pros and cons) is likely here for the long haul.
On this site, we explore every aspect of cryptocurrency. Simply choose a page from the menu, visit our “what is cryptocurrency” page for a more detailed explanation of cryptocurrency, or jump right in to the “how cryptocurrency works” section to start learning about transactions, mining, and public ledgers.
Types Of Cryptocurrencies
Bitcoin is known to be the first and the most famous cryptocurrency. Bitcoin is considered to be the digital gold and is used as a global means of payment. Out of the several forms of cryptocurrency one form to trade cryptocurrency is Bitcoin.
Ethereum is another form to trade cryptocurrency. Next to Bitcoin in popularity this cryptocurrency is the brainchild of young crypto-genius Vitalik Buterin. Ethereum can not only process transactions but complex contracts and programs too.
Though Ripple might be a little less popular form of cryptocurrency this does not bar the investors to trade cryptocurrency in form of Ripple. Ripple has a native cryptocurrency named XRP. XRP, the currency, doesn‘t serve as a medium to store and exchange value, but more as a token to protect the network against spam.
Litecoin was launched just after Bitcoin and was tagged as the Silver to the digital world of currencies. Faster than Bitcoin, Litecoin was a real innovation, perfectly tailored to be the smaller brother of bitcoin. It is still actively developed and accepted as yet another to trade cryptocurrency.
How could a purely digital currency and ledger system have any kind of measurable impact on the environment? To understand the environmental crisis we could be headed for requires a basic knowledge of how cryptocurrency and the blockchain works. Wired magazine has a thorough Bitcoin 101 if you need a refresher. Basically the crux of what we’re discussing here is how Bitcoin mining takes a LOT of computing power and computing power requires energy. As more and more people want to get in on cryptocurrency, more transactions are being processed which means an influx of computers signing on to be part of the blockchain, and math problems that get harder and harder, and require even more energy consumption. So for each incremental token mined, more and more energy is guzzled. Pros and cons of cryptocurrency. Pros: It’s a decentralized currency that takes power away from governments and banks, it democratizes cross-border payments, it prevents against hyper-inflation and economic crises that affects a particular region of the world, and it gives those without access to banks or banking accounts a way to send money to loved ones. Cons: Cryptocurrency is unregulated, lacking any laws or protection we currently have regarding fraud or theft, it enables payments to be used for nefarious purposes more easily, it opens up potential for hacking. And, perhaps the most dire con of them all is something we’r not talking about nearly enough: The potential devastating impact of cryptocurrency and blockchain technology on our environment
How To Trade Cryptocurrency
As many cryptocurrency enthusiasts look forward to invest in Bitcoins and other cryptocurrencies, most of them remain unaware of how to trade cryptocurrency, the various cryptocurrency exchanges, their trading fee and other details. Here are some quick facts on how to trade cryptocurrency
- 2017 was the year that saw the launch of most number of cryptocurrency exchanges in India so that people can trade cryptocurrency easily.
- Out of the total number of cryptocurrency statrups 4 are funded.
- Bitcoin, Ethereum and Ripple are the most common form to trade cryptocurrency.
- There is around 6 cryptocurrency exchange that does not charge any transaction fee.
- On an average it takes around 2 hours for a person to register at any cryptocurrency exchange and start to trade cryptocurrency.
Where Can You Trade Cryptocurrency
Amid 1315 cryptocurrencies along with crypto tokens available to trade cryptocurrency at various exchanges, it becomes crucial to check whether these cryptocurrency exchanges are regulated or not. We will brief you about some of the most common cryptocurrency where you can trade cryptocurrency easily and freely.
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