Investing your money in different types of media has become a trend. One such famous form of media is cryptocurrency. Cryptocurrency is the king of the digital world right now. The most famous and successful cryptocurrency right now is Bitcoin, and you can verify that using a bitcoin converter.
It is different from any other investing method, and if you have knowledge about cryptocurrency, it can secure your money in many ways. If you are a beginner, jumping into the world of cryptocurrency can feel a bit overwhelming. So, if you have made up your mind to jump into the world of crypto, then this might be the guide for you. Here’s everything that you need to know about cryptocurrency.
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What is Cryptocurrency?
Cryptocurrency is a form of digital currency. This currency can be used to trade goods and services online. Often companies issue their own form of currencies in the form of tokens. These tokens are then used by their customers to trade services that the company is providing.
When we go to a casino, we spend real money to trade with tokens that are then used for various casino services (generally gambling games). Similarly, cryptocurrency is traded with real money and then used for goods or services of that specific company. You are not allowed to use tokens of a company, to trade with other organizations.
The technology behind the working of cryptocurrencies is called the blockchain. It is essentially a decentralized technology spread across computers all over the globe. These computers help manage and record transactions being carried out.
How many Cryptocurrencies are Currently in the Market?
New cryptocurrencies are introduced to us every day. However, if we take into account the cryptocurrencies that are traded publicly, there are more than 13000 of them on the market.
Statistics calculated that the total cost of all the different cryptocurrencies combined is more than $2.5 trillion. The peak high of this cost was more than $2.6 trillion.
Bitcoin alone, mentioned as the most popular cryptocurrency, had about $1.2 trillion to its name. More than 40% of the total cost of cryptocurrencies. With these numbers, you can guess how big the crypto market really is.
Why is Crypto so Popular?
Although Bitcoin was released more than 10 years ago in 2009, its popularity has increased in the last 5 years. Some people see bitcoin or crypto as the currency of the future. You can see stories where people bought bitcoin as a joke in its early days, and are now getting crazy rich just from that. People are trying to buy them as soon as possible, preferably before they get more valuable. Another reason is the security while transitioning is more secure than traditional methods.
Now that you know what cryptocurrency is, you can go ahead and learn all about buying them and start investing. Just keep in mind that the crypto market goes up and down fairly quickly and there is no stability. Also, there are a lot of frauds out there, so keep yourself protected.