What is Cryptocurrency?
Features
To know what cryptocurrencies are all about, you should briefly know their fundamental features.
Let us have a look: –
- Cryptocurrencies are very secure: They are secured by cryptography codes and locked using a public cryptographic system. Every owner has a private key. So, no one can access that private key other than the owner. The cryptography used to create this private key is so strong that the numbers are so huge that it is almost impossible to break. Therefore, one can use cryptocurrencies without fear of security.Transactions in cryptocurrencies are irreversible: One of their disadvantages is the irreversibility of transactions. When you use cryptocurrency like bitcoin, you must confirm before the trade occurs. Once you give the confirmation, the transaction will be initiated. And no one in the world could stop that transaction, not even Satoshi Nakamoto himself (or themselves). So, to deal with cryptocurrency transactions, you must be much more responsible before confirming a transaction.There is no need for permission: You do not need to take a permit from anybody while using it. 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 much freedom, and can use cryptocurrencies as they wish.Super-fast: Another great feature is that they are super-fast. If you initiate a transaction, it is immediately caught up in the network and confirmed within two minutes.These currencies do not care about the specific location: Cryptocurrencies do not care about the owner’s physical location. So you can send cryptocurrency to your relative down the street or send the same to a friend from another world. And the transactions would take the same time and would be treated similarly.One can hide real-world identities: Many people are scared to death when they need to share their real identities online. However, in the case of cryptocurrencies, you do not need to provide your real-world identities. All you need to have is an address that has around 30 characters. And you would be able to access their benefits easily.
Top 5 Cryptocurrency
If you would like to deal with cryptocurrencies, this is important.
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#1 – Bitcoin
Bitcoin is everywhere these days and is currently number 1 on the list. You can learn more about Bitcoin – advantages disadvantage here Bitcoin - Advantages Disadvantage HereBitcoin is a digital currency that came into existence in January 2009, speculated to be created by Satoshi Nakamato, whose true identity is yet to be authenticated. It provides lower transaction fees than the traditional online payment systems, is controlled by the decentralized authority, and is not like government-issued currencies.read more.
#2 – Ethereum
Ethereum is second on the list. It is one of the most talked-about cryptocurrencies in present times. After bitcoins, Ethereum has taken the place of the largest-growing cryptocurrency in the world. In 2017, Ethereum grew by around 500%, whereas Bitcoins have raised around 1000%. Ethereum was created by Vitalik Buterin, one of the most sought-after names in this industry. Learn more about Ethereum.
#3 – Litecoin
Litecoin is a possible alternative to Bitcoin. It was created in 2011 by Charlie Lee. After Bitcoin, it is the third in terms of the time and duration of cryptocurrencies. Even if Litecoin did not get as much attention as it deserves, the most important thing that needs our attention is that Litecoin is much faster than Bitcoin and the transaction fees are almost zero. Learn more about Litecoin.
#4 – Ripple
Ripple works similarly to Bitcoin or Ethereum. However, you can send the payments in real-time using distributed financial technology. The difference here is that it works with banks and allows sending of money. Learn more about Ripple.
Find out the differences between Ripple vs LitecoinRipple Vs LitecoinRipple was established in the year 2012 for-profit organization with the main motive of facilitating the payments in the financial institutions and large corporation. Litecoin was established in the year 2011 with the main motive of facilitating peer-to-peer along with the daily transactions.read more
#5 – Dash
Dash was launched in 2014 and has become one of the largest peer-to-peer networks of master nodes. As a result, Dash can provide more capacity to users and a secure environment. Learn more about Dash.
Uses of Cryptocurrency
It does not make sense to know about something if you do not know any practical use of that particular subject. It is the same for cryptocurrency as well. That is why let us have a look at some of the practical usages: –
- Donation: Do you worry about donating but not reaching the right receiver? With its use, you would be able to give without any hassle since it is a peer-to-peer network and is very secure and fast.Higher education: The University of Nicosia offers 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, be ready for the treat. Go to travel websites and book your flights, cars, and cruises.
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This article is a guide to Cryptocurrency and its meaning. Here, we discuss the top 5 cryptocurrencies, including their features and uses. You may learn more about financing from the following articles: –
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