What is cryptocurrency? Should I trade cryptocurrency? Is it worth investing in cryptocurrencies? These are the questions we coming across a lot in recent years. While the situation and circumstances that people have faced during the COVID-19 have emerged its importance more. Besides, it is also a matter of the fact that cryptocurrencies are growing very fast and even some countries are introducing their own cryptocurrencies. Therefore, TOP10.DIGITAL is going to bring you all the necessary details.
What is cryptocurrency?
Cryptocurrency is a digital currency that has no physical existence. Moreover, it is a digital asset that is used as a medium of exchange while the record of the owners of the coins is maintained in a computerized ledger. This ledger is made secure using strong cryptography. Further, these currencies use decentralized control as compare to central banking. It uses a block-chain technology i. e distributed ledger to serve as a public financial transaction database.
What are the famous cryptocurrencies?
What is the cryptocurrency that was introduced for the first time ever? Though the process of cryptocurrencies is something that started in 1983. However, more publicly, it was discussed when Bitcoin was released in 2009. While today, there are over 5000 cryptocurrencies in the world as per the crypto market. The top 5 most famous cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Cornado (ADA), Monero (XMR), and CRO. While there are also some emerging and rapidly growing currencies like TRON, Ripple, NEO and Band protocol, etc. However, now the question is what is cryptocurrency that we should invest in? The answer to this question relies on your budget.
Also Read: BITCOIN CRYPTOCURRENCY-HERE IS WHAT YOU NEED TO KNOW
How to buy Cryptocurrencies?
What is cryptocurrency that you should buy? This is the first question that comes in your mind. However, form where you can buy it? This is the second question that will trigger your mind. So, before buying any cryptocurrency you need an online Crypto Wallet or hardware to store the currency. Then you can buy the currency of your choice from any regular cryptocurrency exchange using your credit card, or in some cases through the process of mining.
Is it worth investing in cryptocurrencies?
Well, the answer to this question is mixed, maybe yes, or maybe no. It depends on what is cryptocurrency you are going to invest in. Moreover, the market of cryptocurrency is new but it is emerging and rapidly growing. So, if the market goes up then you can make a good profit and vice versa. But greater is the risk, greater is reward there. Therefore, it totally depends on you to choose a cryptocurrency after proper research.
Is trading cryptocurrency legal and secure?
The policy of trading cryptocurrencies varies from country to country. Some countries allows it and even they have their own cryptocurrencies. While some countries have reservations and they have declared its trading illegal. So, you must know and search that cryptocurrencies are legal or not in the country you are residing.
Conclusion
What is cryptocurrency? I think after going through this article; you are well aware of it. However, if you are planning to invest in cryptocurrency, then must know about its law in your country and choose a cryptocurrency after researching well. While TOP10.DIGITAL will bring more news and updates about cryptocurrencies.