All the people who are interested in the online market trends should be aware off the fact that for the last couple of years cryptocurrencies have managed to become a global phenomenon known to every trader on the planet. Despite the fact that many of us still doubt in the advantages and the power this asset has, all the governments, banks, and big corporations know exactly how important cryptocurrencies are. To be more specific, we should say that this is actually a form of digital money that is designed to be secure and, in many cases, anonymous.
In 2017, one would hardly manage to find a big bank, successful accounting form or a flourishing IT corporation that hasn’t researched cryptocurrencies, hasn’t published some information about it or haven’t payed any attention to it.
To add some more valuable information regarding the core of this asset type, we should explain that it is basically a type of currency which is associated with the Internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers. From there on, the term crypto mining has occurred as well as the crypto trading business. In fact, many regular online investors are currently trying to earn some satisfying profits by trading with different cryptocurrencies. Due to the fact that mining for such is a complex process, there are many online platforms that claim to automatically generate crypto coins for their members.
If you would like to know more about this topic, we advise you to read the following couple of paragraphs.
What is Cryptocurrency?
It may sound a little bit strange but the truth is that the first cryptocurrency, Bitcoin, was created as a side effect of another product. The unknown creator of Bitcoin, Satoshi Nakamoto, didn’t actually want to invent a new type of currency. He just wanted to develop a Peer-to-Peer Electronic Cash System. The result was a completely decentralized network. The most aspect of this creation was that it is the first decentralized digital currency network which was actually the birth of cryptocurrency. It is a little bit difficult to understand at it is related with some complex technical and mathematical calculations, however if you get it, you will know more about cryptocurrencies than most people do.
Currently, many online retailers, companies, and even banks work with the different cryptocurrency types so one can conduct valid payment transactions by using one of them. Not to mention the fact that for the last couple of months, the price of Bitcoin has achieved the unimaginable value of over $4,000 per coin. This is why, more and more online trading platforms start to offer crypto trading services to their clients.
There are many different speculations regarding the future of cryptocurrencies however no one could deny the incredible power and value they currently have. So, there is no wonder why so many people are willing to become in possession of some virtual coins.
Now, we are going to provide our readers with a short list of the most powerful, popular and commonly used cryptocurrencies that are available on the market.
This one doesn’t actually need any kind of introduction. This is the first and the most popular and successful cryptocurrency. Even the people who don’t really understand what it means, they have heard of it.
Normally, Bitcoin is considered as a digital gold standard in the whole cryptocurrency-industry. It has been used as a global means of payment. Its current price is the highest in the history therefore even more people are interested in it. The financial specialists usually have just one thing to say about it – Bitcoin is here to stay.
This cryptocurrency is also one of the most successful projects in this field of transactions and it has been developed by Vitalik Buterin. Unlike Bitcoin, Ethereum can not only process transactions but also some complex programs and contracts. This flexibility makes the cryptocurrency perfect for blockchain application. After some issues have come across, now we should consider Ethereum more as a group of several currencies than as a single one.
This is the less popular cryptocurrency. It is more like a network which processes IOUs than the cryptocurrency itself. The currency of this network is known as XRP, and it does not serve as a medium to exchange value, but as a token to protect the network against spams. Due to the fact that all the available tokens of this currency have been internally created and distributed on will, Ripple is called pre-mined currency and many specialists and financial analysts don’t even consider it as one of the valid cryptocurrencies on the market. On the other side, big banks actually like Ripple and they accept the system.
This is one of the cryptocurrencies that emerged soon after Bitcon and was immediately named the silver champion in the digital currency era. It has a bigger amount of tokens and is faster than Bitcoin therefore it was considered as a big innovation in the time it was released. With the time passing by, Litecoin sadly didn’t manage to find a real use and lost its second place in the chart of cryptocurrencies. Now, it is more like a backup in case Bitcoin fails.
The Future of Cryptocurrencies?
In order for the truth to be told, the market of cryptocurrencies is rapidly changing and truly unpredictable as new cryptocurrencies emerge on the market day after day, while the old ones disappear. In terms of trading, many investors who manage to early invest in the newly prospering currencies earn significant profits, others lose their money. As you can see, this is a difficult field to conduct transactions in so make sure that you truly understand the core essence of this type of asset before engaging with it.