Wednesday, 16 June 2021

What is Crypto currency? A complete guide on Crypto currencies 2021

 Crypto currency is a kind of virtual or digital currency which is secured by crypto graphy. With this currency, though not in physical form but will allow you to do shopping, buy goods and services, and you are also allowed to do trading and earn profit. Here in this guide, we will share you more information related to crypto currencies, the types of crypto currencies, best crypto currency for investment, how profitable it is to invest in crypto currencies, and many more.  

Crypto currencies can be defined as the virtual or digital form of currency that is distributed across a large number of computers. The word crypto currency is derived from the technique namely encryption that is used to secure the network. With the crypto currency system, users are allowed to make secure payments online.

What is Crypto currency?

The crypto currency can be defined as the form of digital payment that users are allowed to exchange online in order to buy services and goods or for any other kind of shopping.

Several companies in the market have issued their currencies in term of token and these currencies allow the users to trade and buy goods and services that the company provides. All you need is to exchange real currency for buying the crypto currency and then using the crypto currency get the access to goods and services.

The working procedure of the crypto currency involves the use of technology namely Blockchain. It is a kind of decentralized technology that is spreaded across several computers and thus easily manages and records all the transactions. The main role of the block chain technology is to provide the high level of security and thus make it impossible for the cyber criminals to fraud in the case of crypto currencies.      

How many types of crypto currencies are available in the market? What are their worth?

When talk about crypto currencies, the first name in all mouth comes is the Bitcoins. But in actual, there are more than 10,000 types of crypto currencies are available in the market and are traded publically as per the report of CoinMakrteCap.com. This market research website also shows that the crypto currencies keep proliferating and is helpful in raising money through the initial coin offering, or ICOs.

As per the report of the CoinMakrteCap.com, a market research website, the total value of all the crypto currencies on 27th May, 2021 was more than $1.7 trillion which is less valuable then its value in April that is $2.2 trillion.

The total value for the most popular crypto or digital currency that is Bitcoin is about $735 billion which is less than its value in April that is $1.2 trillion.

Best crypto currency you should think invest in as by the market capitalization

The value of Bitcoin crypto currency is on the top and thus making it the best currency for the investors to invest in. Along with bitocin, there are many more digital currencies that users can think invest in. here we are listing you top 10 best crypto currencies by Market capitalization and their value.

The number one crypto currency is Bitcoin and its Market capitalization is $735.3 billion. The market capitalization for the Ethereum is $324.2 billion. The value of Tether, Binance Coin, Cardano, XRP, Dogecoin are $61 billion, $57.5 billion, $54.6 billion, $46.5 billion, and $44 billion respectively. Other best crypto currencies are Polkadot, USD Coin, and Internet computer and their market capitalization are $22.1 billion, $21.9 billion, and $16.7 billion respectively.

Why the Crypto currencies are getting so much popularity?

Crypto currencies these days are alluring more and more traders these days. The reasons for their popularity are:

    • Traders are seeing crypto currencies as the currency of future and thus are competing in investing more and more in digital currencies. They are racing in order to buy the crypto currencies like Bitcoin before their value increases too much.
    • Many traders are also considering the fact that the crypto currency will soon or later remove the management of money by the central bank and this is profitable as the bank over times are reducing the value of the money via inflation.
    • Some traders are supporting the technology behind the crypto currency that is block chain as it is a type of decentralized processing and recording system and it is more secure than any other or the traditional payment systems.
    • Some supporters are supporting crypto currencies as it is expecting to have high value in future and there is no interest in the currencies.

Is crypto currency investment is good?

Seeing the today’s trend, it is sounding a good investment as it value is increasing but sometimes investors are seeing the crypto currency in the form of mere speculation and not as real investment. The reason is that the crypto currency can not generate cash like the real currency.

In contrast, some are supporting the crypto currency saying it is a kind of well managed business and its value is increasing day by day and thus growing the cash flow of the operation. 

As per our opinion, the investment in crypto currencies though sounding profitable but have no stability and thus not safe. For those who are supporting crypto currency as the currency of future, the currency need to be stable and thus allowing the users to determine the fair price for the currency. For example, the value of Bitcoin was around $20,000 in 2017 and then it dropped to $3,200 and then show the record level again in December 2020.

Such variation in crypto currencies make it less safe for the investment.

Is it good idea to buy crypto currencies?

Since crypto currencies are highly volatile and incredibly speculative, it is less safe to invest in crypto currencies. The better option is to trade in stock trading as they are relatively well established and thus less risky.

  

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