Cryptocurrency, Bitcoins, cryptography blockchain, wallets, trading platforms, exchanges; these are some terms and jargon that have been a buzz in several online platforms, media, or even a get-together conversation when it comes to Immediate Edge App’. In several instances, these terms still elude several individuals’ comprehension. So let us look into these terms and understand what the crypto world is all about.
Overview of Cryptocurrency
Cryptocurrencya blockchain element, also known as a decentralized form of digital currency.Cryptocurrencies are highly secured by the method of cryptography. Cryptocurrency runs on highly-functional peer-to-peer systemwith which the users can easily send and receive payments to anyone, anywhere.
The first ever cryptocurrency, Bitcoin was introduced to the financial investment market by Satoshi Nakamoto in 2009. The main feature of Bitcoins is it does not rely on banks or financial institutions to verify the transaction. The first cryptocurrency that was introduced was Bitcoin in 2009. To understand cryptocurrency better, you must first know about the three technologies. They are blockchain, Decentralization, and cryptography.
In the context of cryptocurrency, blockchain is a digital ledger. This digital ledger gives access only to authorized users. This digital ledger keeps track of all the transactions related to the trading of cryptocurrencies, i.e., buying and selling.
The access to the digital ledger is shared between the authorized users. The information shared on this ledger is very transparent, immutable, and immediate. Immutable means that whatever is recorded on the blockchain remains there as it is, and it cannot be changed, tampered or modified, not even by the administrator.
The next term that we must know is Decentralization. Centralization funds or centralized money means the money or funds we regularly use for our daily requirements, and a particular administrative body governs this. In comparison, decentralization in cryptocurrency means that there is no specified administrative authority responsible for supervising the rise or fall of cryptocurrencies. This decentralized money or decentralized funds have several advantages over centralized money.
The third term to understand and know about is cryptography. It is the process that enables secure all the data and information from any unauthorized user access. Most of the work that blockchain does, such as immutability and privacy, is done with the help of cryptography.
Storing Cryptocurrencies- Here Are Points To Note
After you have purchased a cryptocurrency, you will require to store them in a safe and secured place from any thefts and hacks. Primarily cryptocurrencies are stored in crypto wallets. Crypto wallets are online apps or physical devices used to secure your cryptocurrency safely.
Several crypto exchanges will offer you crypto wallet services so that you can easily store your cryptocurrency. However, several exchanges do not provide the wallet service, so make sure that they give the crypto wallet before choosing the exchange. It is one such reliable online crypto app that offers you crypto wallets to store your cryptocurrency safely.
There are mainly two types of crypto wallets available, i.e., cold wallet and the hot wallet.
Types of Cryptocurrencies
Approximately there are around ten thousand cryptocurrencies available globally. Some of the essential cryptocurrencies are:
- Bitcoin: The first-ever cryptocurrency that was introduced. And it is widely accepted worldwide. Bitcoin is so famous that, in several instances, it has been termed a synonym for cryptocurrency. With time Bitcoin has become very expensive. In 2021, one Bitcoin cost was $68,000.. Instead, you can purchase decimal points of the coin.
- Ethereum: Ethereum was introduced in 2015. It has a blockchain platform of its own known as Ethereum or ETH. As per the financial reports, Ethereum is known to be the second most popular cryptocurrency that lists after the ever-trending Bitcoins.
- Litecoin: Litecoin is another popular cryptocurrency like Bitcoin. It has moved quickly and developed several innovations like fast payment options and allowing more transactions.
- Ripple: Ripple was first introduced in 2012. It is a distributed ledger system. Ripple is used for tracking several kinds of transactions other than cryptocurrency.
Now that you have understood some of the basic terms of cryptocurrencies and what they are all about, you can now decide to proceed with the investment part in Bitcoins. It will a wise decision to do proper research before investing in your preferred form of cryptocurrency.