A particular person or company and every country needs a currency or currency to transact money to meet its basic needs, so every country has different currency like rupee, dollar etc. which is a physical That is in physical form, but there is also a currency which is in digital form, which is not possible to print in physical form, this post has detailed information about this digital currency or currency. – Cryptocurrency In English
We can neither see nor touch this digital currency, and it is called virtual currency (virtual currency)Virtual currency or Virtual money) Is also called, which is becoming very popular in the world of Internet for the last several years.
Cryptocurrency In English – What is Crypto Currency?
A digital asset or asset, designed to be used as a money transaction, through exchange, in which the data record of the ownership of one’s personal money is kept in a special ledger in the form of a computerized database , Cryptocurrency And to keep the data of its transaction data secure, additional Crypto currency Cryptography is used to control the creation of and verify the transfer of crypto currency ownership.
Cryptocurrency is not a physical currency like the commonly used paper money and this currency is not issued by any central authority, cryptocurrency uses centralized digital currency and decentralized control unlike central banking systems. Blockchain technology Multiple with decentralized network based on Crypto currency Whose data records are in a distributed ledger implemented by an uneven network of computers. Cryptocurrency works as a way of exchange of money ie Bitcoin and Litcoin are cryptocurrencies.
The first cryptocurrency started in 2009 was Bitcoin, created by an engineer named Satoshi Nakamoto from Japan. Initially, this currency did not become very popular, but it gradually increased over time, making it a success, since 2009 there are many types of cryptocurrencies available in the market, which are only available for electronic systems. Works only as Apart from Bitcoin, there are many other cryptocurrencies which are being used very much, how many types of cryptocurrencies are there? Its information is given below.
Types of Cryptocurrency – Types of Crypto Currency
There are many different types of digital currency called cryptocurrencies that are designed to be used as a medium of exchange, some of them being more popular cryptocurrency as follows –
1. Bitcoin (BTC)
One of the most prevalent digital currencies is Bitcoin, which is considered to be an original cryptocurrency, this digital currency was established in 2009 as an open-source software. Using blockchain technology, bitcoin allows users to perform transparent peer-to-peer transactions and all users can view transactions that are secured through the algorithm contained within the blockchain. Bitcoin does not contain any central authority data, as in a bank, it is only Bitcoin users that control the sending and receiving of money, allowing anonymous transactions to take place worldwide.
2. Litcoin (LTC)
LiTeCoin was launched in 2011 as an alternative to bitcoin cryptocurrency. LeTechoin is also an open-source, global payment network that is fully decentralized, meaning there is no central authority. Some of the common differences between bitcoin and latecoin digital currencies are –
- LeTechCoin facilitates much faster transaction times than.
- The Bitcoin limit for Bitcoin is 21 million and Litcoin is 84 million.
- Both work on different algorithms.
- Litcoin’s algorithm is “scrypt” and Bitcoin’s algorithm is “SHA-256”.
3. Ethereum (ETH)
Ethereum is also a type of cryptocurrency that was created in 2015 and is an open-source platform based on blockchain technology. While tracking the ownership of digital currency transactions, the Ethereum blockchain also focuses on running the programming code of any decentralized application, allowing it to be used by application developers to pay transaction fees and services on the Ethereum network is.
4. Ripple (XRP)
A cryptocurrency called Ripple was released in 2012, which operates as a digital payment network for financial transactions. It is a global settlement network designed to create a fast, secure and low-cost way of transferring money. Ripple allows exchanging any type of currency from USD and Beatcoin to gold and EUR. , And unlike other currencies, it connects to banks. Ripple differs from other types of digital currencies because its preference is not for person-to-person transactions, but to drive money on a large scale.
5. Bitcoin Cash
Bitcoin cash is also a type of digital currency that was created to improve some features of bitcoin. Bitcoin cash increased the size of the blocks, and allowed more and more transactions to be processed faster.
6. Ethereum Classic
Ethereum Classic is a version of the Ethereum blockchain that smartly contracts on a similar decentralized platform. Smart contracts are applications that are programmed without any possibility of downtime, censorship, fraud, or third-party interfaces. Like Ethereum it offers a token called “Classic Ether”, which is used to pay users for products or services.
7. Zcash (ZEC)
Zcash is a digital currency that was originally created on the bitcoin codebase itself. It was conceived by scientists from MIT, Johns Hopkins and other respected academic and scientific institutions, built on a decentralized blockchain. A key feature of Zcash is its confidentiality, while its function is not available to investors on Equity Trust’s platform, users can send and receive Zcash without disclosing the sender, receiver, or transaction amount.
8. Stellar Lumen (XLM)
Stellar lumen is an intermediary currency that facilitates currency exchange. Stellar allows a user to send any currency to another currency. Jed McCaleb founded Stellar, an open-source network, and in 2014 created the network’s original currency ‘Stellar Lumens (XLM)’.
9. Bitcoin SV
Bitcoin SV (Bitcoin Satoshi’s Vision / BSV) is the result of the 2018 division of bitcoin cash. It is more closely related to the original purpose of bitcoin, specifically the purpose of creating it, using cryptocurrency as decentralization and payment.
Cardano is a decentralized public blockchain and cryptocurrency project and is based entirely on open source technology. Cardano is a non-profit platform with three separate bodies responsible for maintaining and developing the platform.
Advantages of Cryptocurrency – Benefits of Crypto Currency
Intermediaries are of no use in cryptocurrency, so its transactions are generally easier and faster, and require no additional transaction fees. Cryptocurrency has the ability to “give back power” to people. Apart from this, the advantages of cryptocurrency are as follows –
- Crypto currency is a digital currency so there is very little fraud in its transactions.
- Investing in it can prove beneficial when there is more money because its prices grow very fast.
- Online wallets of every cryptocurrency are available making online shopping, online money exchange easy.
- Cryptocurrency is not controlled by any authority, so that there is no risk of demonetisation or currency depreciation.
- There is no capital control in many countries, in this case, you can send any amount of money outside any country.
- For those who want to keep their money hidden, there is a platform to hide money in the form of cryptocurrency.
- Cryptocurrency is secure in every way.
Disadvantages of Cryptocurrency – Disadvantages of Crypto Currency
Everything has its advantages and disadvantages, Cryptocurrency The benefits mentioned above are Cryptocurrency What are the disadvantages? It is explained below –
- Cryptocurrency does not have any physical existence, and it is not printed i.e. the currency notes are not printed and no bank opens an account for it.
- There is no institution to control this currency, which keeps its price going up and down, which can be risky for those who invest in cryptocurrency.
- This type of currency can be used very easily in illegal activities such as purchase of weapons, supply of drugs, black marketing etc.
- This is digital money so there is a possibility of it being hacked on the internet.
- If this currency is transacted by mistake, it cannot take returns.
Cryptocurrency Legal or Illegal – Is Crypto Currency Legitimate?
The use of cryptocurrency is legally valid in some countries, it is not valid in some countries, that is, in many countries, cryptocurrency (yet)Cryptocurrency) Is not legally recognized, even in India this currency is not legal, and in many countries this currency is kept in ‘gray zone’ i.e. this currency (Cryptocurrency) Is formally banned.