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Bitcoin isn’t the ultimate face of cryptocurrency

Introduction to cryptocurrency

Since the past few years, there has been a buzz regarding digital money, or in other words, cryptocurrency. With the accelerating advancements in technologies, the world can now process transactions in a currency which can’t be seen or touched. It has no physical existing like bonds or cash money. This virtual currency is maintained on a series of computers distributed all around the world.

Cryptocurrency can be considered as the future of the financing industry. Unlike national currencies which are controlled by a centralized body, crypto is decentralized. This means there is no regulatory or government body that can put restrictions on the currency transactions or manipulate the crypto. This absence of limitation has proven to be a boon for many investors and traders.

Every transaction related to this virtual currency is managed over the popular blockchain technology. It’s a digital ledger which is managed and updated by a peer-to-peer network distributed across the world. This has been done to bring every crypto user at the same level such that no political or social conflict can arise.

Read Also: Lessons for Nigeria as Tesla splashes $1.5bn on bitcoin

How cryptocurrency is more beneficial than physical currencies?

Even when the use of cryptocurrencies has become prominent, its knowledge is still an obscure subject to many. With rumors flying in the air, it might be difficult for one to understand the efficacy and practicality of the crypto. For this reason, we have discussed here a few perks of the cryptocurrency and how it is different from the traditional money.

  • The transactional records of traditional currency are visible to the prying. This can expose you to the hackers, which is the main reason behind identity theft. However, every transaction regarding cryptocurrency is unique and occurs between two parties. The details are not disclosed, which will help you to avoid any form of cybercrime.
  • There is no middle man involved in crypto transactions. In the market, it is the buyers who directly deal with the sellers without any involvement. This makes the cryptocurrency transactions faster and more reliable. Also, the absence of a broker or a middleman has reduced the transaction fees to a great limit.
  • The crypto trade market is spread over the entire world. Exchanging physical currencies has lots of ups and downs. However, cryptocurrency trading is easier, lucid, and far smoother with platforms like the crypto engine app. With the help of the blockchain, international transactions can be easily made with no restrictions.
    Bitcoin- the life source of cryptocurrency 

    Introduced in 2008, Bitcoin is considered to be the lifeline of crypto market even after a decade. It is the largest traded cryptocurrency in the whole world. As of 2021, the total number of existing bitcoin in the blockchain ledger is approximately 18, 630, 000, thereby taking up almost 40% of the global financial market.

    Even though the knowledge about the formation of bitcoin is still in the dark, this hasn’t deterred the traders and investors to make transactions with this particular virtual money. Like all other cryptocurrencies, bitcoin is also a decentralized currency whose balance is managed through a peer-to-peer network on the blockchain.

    Pros and cons of bitcoin

    Pros

  • Bitcoin has a high level of liquidity, which helps the traders convert their cash money or assets into this currency with no hassle.
  • As bitcoin is not subjected to any rule set by centralized authorities, your currency will never lose value.
  • Bitcoin still being a new currency is highly volatile. This is what attracts the traders mostly, giving them more opportunities for making money.
  • No verification or document history is needed to open the bitcoin wallet and trade the currency.
  • Not every crypto trading platform will accept the bitcoin.
  • With trading solely in bitcoin, you are losing opportunities to make money by dealing in other cryptocurrencies.
  • Popular cryptocurrencies in 2021

    Yes, bitcoin is the most popular cryptocurrency even in 2021 and it has the largest volume in terms of the blockchain transactions. But, this doesn’t mean you cannot try knowing and dealing with other cryptocurrencies. So far, more than two thousand cryptocurrencies have been introduced to the world.

    On this account, it’s your duty to learn more about the cryptocurrencies. This way you will never miss any opportunity of making profitable trade deals.

    Ethereum:

    Etherum was introduced in 2015 as an open-source software platform. It facilitated the development of DApps and SmartContracts. Etherum has its own cryptocurrency, also known as ether, which allows the traders to initiate transactions without any fear of security or limitation. Ether is the second largest cryptocurrency in the world after bitcoin.

    Cardano:

    Consider a coin and put Etherum on one side. If this is the case, the other side is Cardano. It was developed by an expert team of cryptographers and coders, one of them being Charles Hokinson. Cardano has its own blockchain which was launched after hundreds of experimentation and research works. This is what sets Cardano apart from other cryptocurrencies and that also in a positive way.

    Litecoin:

    Introduced by Charlie Lee, this open-source, decentralized network distributed all across the globe. Litecoin is similar to bitcoins on many levels, and that’s why most bitcoin traders also deal with litecoin. Just like the name suggests, LTC transactions are super fast as it has impeccable block generate speed. Thanks to the market cap value of around $10 billion in 2021, LTC is considered to be the sixth largest cryptocurrency.

    Stellar:

    Stellar was first launched as an institutional blockchain which several enterprises to make large and sumptuous transactions easily. It offered a fast and reliable software interface where cryptocurrencies can be traded within minutes. It’s official currency is named as Lumens or XLM. With an approximated market cap value of $6 billion, Stellar is now one of the most used open-source platforms for both individual and enterprise crypto traders.

    Conclusion:

    With zero inflation rates and higher level of encryption, cryptocurrency has become the face of future global market. it is offering traders ample number of opportunities to make profits from digital currency trades. With now several thousand currencies available, one will have lots of options for trading swiftly without any hassle.

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