Cryptocurrency or Bitcoin is a trending way of investing nowadays. Those who are familiar with the stock market and real estate may have heard the name Cryptocurrency or Bitcoin several times. Here we will guide you with all the necessary pieces of information that you need to know about Cryptocurrency and Bitcoin as well. In this Bitcoin Era, you cannot miss them as a beginner. For more you can visit the official site.
What Are Cryptocurrency and Bitcoin?
Cryptocurrency is considered a form of payment. It is a digital form of currency that has no physical appearance. But one can use these currencies to make payments online for any services and goods. Do you know about the tokens that are given at the casino? You can understand the concept of Cryptocurrency with this example.
You can get Cryptocurrencies in return for traditional money such as USD or Euros. As the Crypto market is volatile, just like Gold, the value price of Cryptocurrencies increases and decreases as well.
A decentralized technology runs the Cryptocurrency market. It is named Blockchain. In the year 2009, Bitcoin was launched as a form of Cryptocurrency. Now Bitcoin is used as the synonym of Cryptocurrency.
Different types Of Cryptocurrencies With their Worth
The Cryptocurrency market has more than 6,700 different Cryptocurrencies, as per a well-known market research website. Cryptocurrencies are still embarking on the way of the economic world with their increasing demand and rising value price. Bitcoin is the king of this Crypto market, and since its rule, it is ruling the market of the Cryptocurrency market. Apart from Bitcoin, there are some popular Cryptocurrencies like Ethereum or Ether, Litecoin, XPR, and many more.
Some Cryptocurrencies With their Market Capitalizations
Here are the ten most popular or successful Cryptocurrencies in increasing order along with their market capitalization.
|Cryptocurrencies||Market Capitalization By 28th January 2021|
|Binance Coin||$6.2 billion|
|Bitcoin Cash||$7 billion|
Perks of Cryptocurrencies
It has several benefits that are attracting more institutions and investors to put their money in the Crypto market.
- Cryptocurrency has the potential to replace traditional currencies like dollars and euros.
- The total number of available Bitcoin in the market is fixed. It is 21 million. So, there will be no chance of inflation, unlike traditional currencies.
- Cryptocurrency makes the transaction process simpler and faster. It takes minimal time for international transactions as well.
- The transaction cost with Cryptocurrency is also less.no fee is charged for Crypto transactions. In case you want to do the transaction faster, you need to pay a minimal transaction fee.
- Cryptocurrency is totally secure and private. Your identity will remain private here. None of your personal and financial details will be revealed here.
- Government has no authority over the Cryptocurrency that you own. No government can regulate it.
Drawbacks of Cryptocurrencies
Though the cryptocurrency has several benefits and has the potential to alternate the traditional currencies, it also has some risks. The risks are:
- Cryptocurrencies are stored in digital wallets. The wallets can be offline or online. In case you lose the wallets, your whole money will be lost.
- There is a specific process of creating a Cryptocurrency. The process is called Cryptocurrency mining. Cryptocurrency mining has an adverse effect on the environment. A huge amount of electrical power back up is needed for this process. It also emits a considered amount of CO2.
- The volatility of Cryptocurrencies is considered as the most considered drawbacks of Cryptocurrency.
Online Brokers That Offer Cryptocurrencies
As now you have got an idea about Cryptocurrencies and Bitcoins, you can put your money in the volatile Crypto world. Here are some brokers who deal with different Cryptocurrencies. They are
- SoFi active investing.