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What are cryptocurrency and their types

So what is cryptocurrency? Today, see who is running after Cryptocurrencies. In a very short time, Cryptocurrency has shown its power in the financial market. Cryptocurrency can also be called digital money because it is available only online and we cannot do it physically.

In other currencies such as Rupees in India, Dollar in USA, Euro in Europe, etc. Governments are implemented throughout the country and are used in the same way these currencies are also used in the whole world. But it is to be understood here that Government does not have any hands on these Cryptocurrencies as they are Decentrallized Currency, so no agency or government or any board has authority over them, due to which it did not regulate its value.

Cryptocurrency is also called digital currency. This is a type of Digital Asset that is used for purchasing goods or services. Cryptography is used in these currencies. This is a Peer to Peer Electronic System which we can use to purchase Goods and Services in place of regular currencies through the Internet. In this system, the government can work even without telling the banks, so some people believe that cryptocurrency can also be used in the wrong way.

If we first do Cryptocurrency, then it will be Bitcoin which was first brought to the world for these purposes. If we see today, more than 1000 Cryptocurrency are all around the world but only a few of them are more important, about which we will learn later. Cryptography is used to create cryptocurrency.

If we all talk about cryptocurrency, then the first one of which is famous is Bitcoin. It was also made first and it is also used the most. There was a lot of controveries about Bitcoin, but today Bitcoin is at the top of Cryptocurrencies. Here I am going to tell you about some other cryptocurrencies that you may already know about.

Types of cryptocurrencies

If seen, there are lots of Cryptocurrencies but there are only a few of them which are performing well and which you can use other than Bitcoin.

1. Bitcoin (BTC)
If we talk about cryptocurrency and it is not about Bitcoin then it is not possible at all. Because Bitcoin is the first Cryptocurrency in the world. Which was created by Satoshi Nakamoto in 2009. It is a digital currency that is used only to buy goods and services online. It is a de-centralized currency which means that no government or any institution has any hand on it. If we talk about today, then its value has increased considerably, which is now close to 13 Lacks, the value of a coin. From this, you can find out about its present importance.

2. Ethereum (ETH) Like
Bitcoin, Ethereum is also an open-source, decentralized blockchain-based computing platform. The name of its founder is Vitalik Buterin. Its Cryptocurrency token is also called ‘Ether’. This platform helps its users to create digital token, with the help of which it can be used on the basis of currency. Ethereum (ETH) and Etheriem Classic (ETC) have been divided into two parts due to the recent addition of a Hard Fork. It is the second most famous cryptocurrency after bitcoin.

3. Litecoin (LTC)
Litecoin is also a decentralized peer-to-peer cryptocurrency, open-source software that was released under the MIT / X11 license by Charles Lee in October 2011, which was previously a Google Employee Have been Bitcoin has a huge hand behind its creation and many of its features are similar to those of Bitcoin. Litecoin’s block generation time is 4 times less than Bitcoin. Therefore, Transaction is completed very quickly. It uses the Scrypt algorithm to perform mining.

4. Dogecoin (Doge)
The story of the formation of Dogecoin is quite interesting. It was compared to a dog for mocking Bitcoin which later took the form of a Cryptocurrency. The name of its founder is Billy Markus. Like Litecoin, it also uses Scrypt Algorithm.

Today the market value of Dogecoin is more than $ 197 million and it is accepted in more than 200 merchants all over the world. In this too, mining is much quicker than others.

5. Faircoin (FAIR)
Faircoin is part of a much larger grand socially-conscious vision that is a Spain-based co-operative organization and also known as Catalan Integral Cooperative, or CIC. It uses the blockchain technology of Bitcoin, but with a more socially constructive design. Like other cryptocurrencies, Faircoin does not depend on mining or minting new coins at all. But instead, they use certified validation nodes, or CDNs, for the block generation. In Faircoin, ‘proof-of-cooperation’ is used in exchange for proof-of-stake or proof-of-work.

6. Dash (DASH)
Its earlier names were XCoin and Darkcoin, Dash, means ‘Digital’ and ‘Cash’. It is an open source, peer-to-peer cryptocurrency similar to Bitcoin. But it has more features than Bitcoin like ‘InstantSend’ and ‘PrivateSend’. In InstantSend, users can easily complete their transactions, while in Privatesend, the transaction is completely safe, where users’ privacy is given great importance.

Dash uses an uncommon algorithm called ‘X11’, which is unique in that it becomes compatible with even less powerful hardware , so that more and more people can mine their own currency. X11 is a very energy efficient algorithm, which consumes up to 30% less power than Scrypt.

7. Peercoin (PPC)
Peercoin, which is completely based on the Bitcoin protocol and which has a lot of source code in both. In this, the Proof of work is not only relied upon to verify the transaction, but also the Proof of stake system is kept in view. As the name suggests, Peercoin is also peer-to-peer cryptocurrency similar to Bitcoin, in which the source code has been released under the MIT / X11 software license.

Peercoin also uses the SHA-256 algorithm, similar to Bitcoin. And it requires very little power to conduct transactions and mining.

8. Ripple (XRP)
Ripple was released in 2012 and is based on distributed open source protocol, Ripple is a real-time gross settlement system (RTGS) that runs its own Cryptocurrency also called Ripples (XRP) Goes. It is a very popular and popular cryptocurrency and has an overall market cap of about $ 10 billion. According to their officials, Ripple provides users to “secure, instant and nearly free global financial transactions of any size and in which there are no chargebacks.

9. Monero (MXR)
It was actually born from a fork of Bytecoin in 2014 and since then it is of popular benefit. This cryptocurrency works in all systems such as Windows, Mac, Linux, Android, and FreeBSD. Like Bitcoin, Monero also focuses on privacy and decentralization. The most important difference between Bitcoin and Monero is that high-end GPUs are used in Bitcoin while Monero uses consumer-level CPUs.

Benefits of CryptoCurrency

  • The chances of fraud in cryptocurrency are slim.
  • If we talk about cryptocurrency, then they are more secure than normal digital payment.
  • In this transaction fees are also very low if we talk about other payment options.
  • The accounts in this are very secure because different types of Cryptography Algorithm are used in it.

Disadvantages of Cryptocurrency

  • In cryptocurrency, once the transaction is complete it is impossible to reverse it as there is no such option.
  • If your Wallet ID is lost then it is lost forever because it is not possible to get it again. In such a situation, whatever money you have in your wallet is lost forever.

Also Red This – What is blockchain and how does it work?

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