Cryptocurrency is a digital payment system maintained by a network of computers that uses cryptography to verify transactions. They don’t physically exist. You can’t pick up a bitcoin and hold it in your hand, or pull one out of your wallet.
It was introduced in 2009. Bitcoin was the first cryptocurrency that was introduced to the world.
Cryptocurrencies are not controlled by any regulatory body. This means if your cryptocurrency is stolen you cannot file a complaint to the police.
The USA, Japan, China, Spain & Romania are some of the countries where it is widely used.
As of April 2021, more than 100 million people hold cryptocurrency, and there are more than 10,000 different types of digital money.
How cryptocurrency works, the working principle?
Cryptocurrency’s working mechanism is very similar to bank credit or debit card. In both cases, a complex system that issues currency and records transactions and balances works behind the scenes to allow people to send and receive currency electronically.
As with banking, online platforms can be used to manage crypto accounts and move balances.
The fundamental difference between cryptocurrency and bank credit is that instead of the central bank issuing the currency and keeping ledgers, an algorithm does.
Top 10 Cryptocurrency to invest in 2021
Bitcoin is a type of cryptocurrency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank.
It was invented by Satoshi Nakamoto, whose identity is a mystery to this day.
You do not have access to any tangible bitcoins, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by the entire bitcoin network.
Bitcoins are not issued by any banks or governments, nor are individual bitcoins valuable as a commodity.
Though it is not a legal commodity, Bitcoin is very popular and has encouraged the launch of hundreds of other cryptocurrencies, collectively called altcoins.
It is also referred to as BTC.
Bitcoin – Key Takeaways
- Launched in 2009, bitcoin is the world’s most valuable cryptocurrency.
- Unlike fiat currency, bitcoin is handled with the use of a decentralized ledger system, known as a blockchain.
- Bitcoin’s history as a store of value has been turbulent; the cryptocurrency skyrocketed up to roughly $20,000 per coin in 2017, but less than years later, it was trading for less than half of that.
- As the earliest cryptocurrency to gain massive popularity and success, bitcoin has inspired a host of other cryptocurrencies in its wake.
HOW TO BUY BITCOIN?
Interesting facts about Bitcoin
- In Switzerland, you can pay taxes with it.
- In Germany, you can buy a house with it.
- Bitcoin touched the 1 trillion$ in just 12 years. (for giving you perspective, it took APPLE 42 years & Microsoft 44 years to reach that milestone).
- Only 21 million Bitcoin will ever exist.
- 90% of them have already been mined.
- The last Bitcoin is going to be mined in the year 2140.
- Satoshi Nakamoto has 1 million bitcoins!
Ethereum is a blockchain platform with its own cryptocurrency, known as Ether (ETH) or Ethereum, and its own programming language, known as Solidity.
As a blockchain network, Ethereum is a decentralized network for verifying and recording transactions. The network’s users can create, publish, monetize, and use applications on the platform, and use its Ether cryptocurrency as payment. Insiders call the decentralized applications on the network “dapps.”
It is the behind only BTC in terms of market value. Ethereum was co created by Vitalik Buterin.
It is also referred as ETH.
Ethereum – KEY TAKEAWAYS
- Ethereum is an open-source blockchain-based platform used to create and share business, financial services, and entertainment applications.
- Ethereum users pay fees to use dapps. The fees are called “gas” because they vary depending on the amount of computational power required.
- Ethereum has its own associated cryptocurrency, Ether or ETH.
It’s cryptocurrency is now second only to Bitcoin in market value.
HOW TO BUY ETHEREUM?
Interesting facts of Ethereum
- ETH was a crowdfunded project.
- Tech giant loves ETH (Microsoft, HSBC, Barclays).
- ETH is one of the hottest programming development tools out there.
- ETH wasn’t always the number 2 cryptocurrency in the world.
- You can mine 18 million Ether per year!
- ETH hosts the majority of ICOs (initial coin offering).
- It is a centralized decentralized currency.
Tether is a block-based cryptocurrency whose cryptocoins in circulation are backed by an equivalent amount of traditional fiat currencies, like the dollar, the euro, or the Japanese yen, which are held in a designated bank account.
Launched in July 2014 as Realcoin, it was rebranded as Tether in November by Tether Ltd., the company which is responsible for maintaining the reserve amounts of fiat currency.
It started trading in February 2015.
Tether – KEY TAKEAWAYS
- Tether (USDT) is a stable coin, a type of cryptocurrency which aims to keep cryptocurrency valuations stable.
- Tether is used by those crypto investors who want to ignore the extreme volatility of other cryptocurrencies.
- In April 2019, the New York Attorney General accused Tether’s parent company of hiding an $850 million loss.
- Tether tokens trade under the USDT symbol.
HOW TO BUY TETHER?
Interesting facts about USDT (TETHER)?
- The purpose of designing the Tether coin was to create a vital link between cryptocurrencies and fiat currencies.
- It is pegged to the U.S. dollar maintaining a 1 to 1 ratio with the U.S. fiat currency.
- Initially, it was known as RealCoin, during its launch in July 2014. But in November, Tether Ltd. gave it a new name ‘Tether’.
Binance coin is the crypto-coin issued by the binance exchange and trades with a BNB symbol.
Binance coin supply is limited to 200 million BNB tokens.
Binance Exchange is the largest cryptocurrency exchange in the world, as of April 2021, which support more than 1.4 million transactions per second.
BNB was launched during an ICO in July 2017.
Initially based on the Ethereum network BNB is now the native currency of Binance’s own blockchain, known as Binance chain.
Charles Hoskinson is the founder of Cardano.
Bianace – KEY TAKEAWAYS
- Binance Coin is issued by the Binance exchange and trades with the BNB symbol.
- Every quarter, Binance uses one-fifth of its profits so that it can repurchase and permanently destroy, or “burn,” Binance coins held by it.
- Binance was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
HOW TO BUY BNB (Binance)?
Interesting facts about BNB
- BNB Provides lightning-fast transactions.
- BNB is accepted as currency by some service providers, mostly in the hospitality/travel industry.
- BNB can be used to buy and sell a huge variety of cryptocurrencies.
- Only 200 million BNB will be supplied in crypto market—this amount can never increase.
Cardano is a public blockchain platform.Cardano is a decentralized third-generation proof-of-stake blockchain platform. It was created in 2017.
IOHK, Cardano Foundation, and EMURGO are three organizations responsible for Cardano’s development.
The IOHK works with a team of academics spread out globally to produce, research and review platform updates before implementation to ensure that they are scalable.
The main objective of Cardano is to provide a more balanced and sustainable ecosystem for cryptocurrencies.
Cardano – KEY TAKEAWAYS
- Cardano is a blockchain and smart contracts platform with a cryptocurrency called “ADA.”
- For identity management and product traceability, Cardano has released products
- Cardano makes use of Ouroboros—a proof-of-stake algorithm—to create blocks and validate transactions occurring on its blockchain.
HOW TO BUY CARDANO?
Interesting facts about Cardano
- It is the first blockchain platform to be created out of a scientific philosophy and a research-first driven approach.
- Cardano is an open-source computing platform that runs the blockchain used by ADA cryptocurrency.
- Cardano is the first blockchain, where new ideas/articles are peer-reviewed before implementation.
- Cardano security utilizes quantum computers.
- Cardano blockchain has a layered architecture similar to TCP/IP, allowing for easier updates via soft forks.
- Cardano blockchain platform is implemented in Haskell programming language which has a high degree of fault tolerance and many other great features.
- Cardano supply is limited to 45 billion coins.
Dogecoin is a cryptocurrency, whose journey begins as a joke in 2013. I It is an Alt-coin.
It is named after an internet meme centered around the image of a Shiba Inu dog with bad spelling habits—thus “doge” instead of “dog.”
In 2013, software engineers Billy Markus and Jackson Palmer launched it as a way to make fun of bitcoin and the many other cryptocurrencies boasting grand plans to take over the world.
It came into limelight when SpaceX CEO Elon Musk started tweeting about it.
- Unlike bitcoin, which has a capped supply of 21 million coins, there is currently no limit to the number of dogecoins that can be created.
- Dogecoin is an open-source cryptocurrency created by Jackson Palmer and Billy Markus.
- Dogecoin started as a joke which was based on a popular meme featuring a Shiba Inu (a Japanese breed of dog).
- It is based on Litecoin and has the same technology behind its proof-of-work.
- It has a loyal community of supporters who trade and use it as a tipping currency for social media content.
HOW TO BUY DOGECOIN
Interesting facts about Dogecoin
- Dogecoin has an interactive community of followers.
- Dogecoin is the easiest crypto to buy.
- Dogecoin has the largest circulating supply of the coin.
- The Dogecoin mining process is the fastest; at least 98.9815 Dogecoin can be mined per day.
- Dogecoin has a massive fan following in the entertainment world.
- Dogecoin has been widely represented on social media since its origin. Platforms like Reddit and Twitter promoted Dogecoin in their initial days.
Ripple can be defined as a technology that acts as both a cryptocurrency and a digital payment network for financial transactions.
It was first released in 2012; it was co-founded by Chris Larsen and Jed McCaleb.
Ripple is the name of the company and the network, and XRP is the cryptocurrency token. The reason behind creating XRP is to serve as an intermediate mechanism of exchange between two currencies or networks—as a kind of temporary settlement layer denomination.
- Ripple is a kind of digital payment network and protocol with its own cryptocurrency, XRP.
- Rather than using blockchain mining, Ripple uses a consensus mechanism, via a group of bank-owned servers, to confirm transactions.
- Ripple transactions use less energy than bitcoin, are confirmed in seconds, and cost very little, whereas bitcoin transactions use more energy, take longer to confirm, and include higher transaction costs.
- Ripple ranks among the top five most valuable blockchain-based tokens by market capitalization.
HOW TO BUY RIPPLE
Interesting facts about Ripple
- Out of three products that Ripple offers only one uses the XRP token.
- You can’t mine Ripple.
- Ripple’s network is much faster than that of bitcoin’s or Ethereum’s.
- Ripple isn’t meant to be a payment currency.
- Ripple’s transaction cost is minuscule.
- Ripple isn’t the cryptocurrency’s official name.
USD Coin is a stablecoin which is backed by the U.S. dollar. Every USD Coin carries worth of $1 and can also be redeemed for cash. The coin also works like cryptocurrency and can be sent anywhere with no fees.
More than one billion USD Coins were released by CENTRE, the creator of the coin and the consortium co-founded by Coinbase.
USD Coin (USDC) is a relatively fresh stable coin that is pegged to the US dollar. It was formally launched on September 26, 2018, in collaboration between Circle and Coinbase.
USD coin-KEY TAKEAWAYS
- It is an ERC-20 token and a member of the stable coin family.
- USD Coin was developed by Circle and Coinbase, and is the only stable coin traded on Coinbase.
- It is part of the CENTRE stable coin framework, which requires full reserves, regulatory compliance, and regular audits.
- You might think of USD Coin like Tether, if Tether wasn’t a scam.
HOW TO BUY USD
Interesting facts about USD
- It is the largest stable coin ecosystem.
- Each USDC is backed by a dollar.
- As of June 2021, 23 billion USDC are in circulation.
Polkadot is a software that seeks to incentivize a global network of computers to operate a blockchain on top of which users can launch and operate their own blockchains.
It was launched in 2020.
Polkadot to date has raised roughly $200 million from investors across two sales of its DOT cryptocurrency, making it one of the most well-funded blockchain projects in history.
- Polkadot is a next-generation blockchain protocol that connects multiple specialized blockchains into one unified network.
- Polkadot is a sharded multichain network.
- Networks and applications which exist on Polkadot can share information and functionality as apps do on a smartphone.
HOW TO BUY POLKADOT
Interesting facts about Polkadot
- Connecting to Polkadot gives you the ability to interoperate with a wide variety of blockchains in the Polkadot network.
- Polkadot provides you with unprecedented economic scalability by enabling a common set of validators to secure multiple blockchains.
- Polkadot’s novel data availability and validity scheme allows chains to interact with each other in a meaningful way.
- Polkadot has an advanced governance system where all stakeholders have a say.
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