What is Crypto?
Everything you Need to Know About Cryptocurrencies – Bitcoin, Ethereum and Litecoin
The cryptocurrency world has been on the rise since the start of 2017. The three most traded digital assets, Bitcoin, Ethereum, and Litecoin have even seen an exponential price growth this year. Due to this, institutional and private investors are showing an increasing interest towards cryptocurrencies. More and more investors have added these assets to their trading portfolios after recognizing their potential returns.
What is a Cryptocurrency?
A cryptocurrency is a digital or virtual currency created via an encrypted code. This currency is totally independent in the sense that it is free of government and central bank oversight.
The cryptocurrency economy functions via a “peer-to-peer system” which monitors and executes transactions. These digital assets are known to be secure as they prevent transactions from being faked, manipulated or reversed. Many have turned to cryptocurrencies as a means of payment. This is because they are pseudo-anonymous, meaning, you can send and receive funds without being obliged to give personally identifiable information. Nevertheless, you are required a pseudonym when carrying out transactions.
A miner is someone who helps keep the cryptocurrency network secure by approving transactions. It is the mining process which helps currencies circulate. Every time a miner solves or creates a block, a new hash is created. A miner’s performance is determined by the number of hashes per second. Bitcoins are mined using the Cryptographic Hash Algorithm, SHA-256, while other cryptocurrencies like Litecoins are mined using Scrypt, another hashing function.
Bitcoin was the first cryptocurrency to launch in 2009 and remains till this day, the number one, most popular and traded digital currency. The past decade has seen the establishment of around 1000 cryptocurrencies, with some standing out more than others. Below, we introduce to you the most leading ones…