You might have heard of Bitcoins? Do you really know what it is? Well, it is a cryptocurrency or a digital coin that helps you transfer funds anonymously.
What Is A Cryptocurrency?
Before we delve deeper in the world of cryptocurrency and its type, you need to know what it is. Cryptocurrency is a form of digital money, that uses encryption to validate its transactions. You can also mine cryptocurencies. The process involves using computer to solve equations and validate your transactions.
The record of any transactions are stored in Blockchain. The Blockchain technology was first used by Bitcoin. However, now Blockchain have found its uses in other industries. Now that you have an idea of digital coins and Blockchain, let’s look at the most popular cryptocurrencies available in the market.
Bitcoin is the most popular cryptocurrency in the market. After 2017, Bitcoin cash was also introduced. The aim behind this was to help accelerate transactions in Bitcoin. BCH or Bitcoin Cash became so popular that even the famous digital coin exchange Coinbase allowed its transaction.
Working on the same principle as the Bitcoin, this digital coin was created by Charlie Lee in 2011. Lee is a graduate of the MIT University, and has several feathers under his belt.
Litecoin can be mined faster than Bitcoin, and is valued at much less. In fact, you can mine a LTC in just 2.5 minutes, compared to 10 minutes of BTC. The cost of a LTC is below $250.
The list of most popular digital coins would be incomplete without Ethereum. First proposed in 2013, ETH was launched in 2015. In addition to being focused on smart contacts, it works in the same way as the Bitcoin.
You can use ETH to build your own contracts, manage contracts, create accounts and transfer funds. This is really helpful if you are planning to build a contract for business purpose.
Advantages of Cryptocurrencies
There are several reasons why cryptocurrencies are the new currency in use. The transaction that you do is irreversible. This means, you cannot take back your money once the transaction is complete.
Neither the accounts nor transactions require your real name. You can send and receive money with just a pseudonym if you want. The payments are fast and can be done globally. What’s more, they are secure and you don’t need to ask anyone for permission. The whole process is decentralized and easy to handle.
So, now that you know about cryptocurrencies, it is time for you to start using them. If you are looking for a hassle free payment option, digital coins are your answer.
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