What is cryptocurrency?
A cryptocurrency is a form of digital currency which doesn’t have a certain physical form it cannot be held in hands like coin and cash; it is stored in the digital storage system. It is referred to as a token. It is stored in a digital wallet on any device like Smartphone’s or computer. The owner of these coins can use them in exchange for goods and services. The transactions are highly encrypted and secured. But unlike traditional currency cryptocurrency is decentralized money which doesn’t have any particular center that acts as a third party controlling the transactions. Cryptocurrency transactions are done by the Blockchain system.
How does cryptocurrency work?
As said before it won’t have any specialized center like a bank or others to handle the transaction. It acts in peer-to-peer technology; all the transactions are recorded in a Blockchain system. It’s like a larger spreadsheet in which each transaction taking place is represented in blocks added to a large chain structure; each and every transaction will be in Blockchain forever. The blockchain system is scattered among many computers which are highly protected by a complex system to avoid hackers from hacking the transaction or altering transaction. The user wallet will have a public key and private key which is only known to the owner to do any transactions.
Types of cryptocurrency available in the market and its worth:
There are more than 13,000 types of crypto coins available on the market as of now which are publically traded. The all-time high value of the coin reached $2.5 trillion on Oct 22 in 2021. Among these bitcoin is said to hold the highest share rate about $650 billion. These are the popular cryptocurrency so far said by CoinMarketCap
|Binance Coin||$82 billion|
|USD Coin||$32.4 billion|
How to invest in cryptocurrency:
The first and far most steps are finding your broker. There are many brokers available for trading but you have to choose a trustworthy and highly profitable broker site. Then create a demo account and practice your strategy gain some knowledge about trading after that create a live account. To create an account you will be asked to give your information such as a bank, credit card, debit card details then any government-approved id such as a license to prove your identity. Once you’re verified. Fund your account for buying coins. Start placing orders buy or sell coins you are interested in, select your storage method.
Where to invest:
These are some of the top famous trading brokers you can make your investment on cryptocurrency,
- SoFi Active Investing