In simple terms, cryptocurrency is targeted as a digital asset. The name mainly originated from the fact that all the transactions remain highly encrypted, which will make the exchanges pretty secure. Cryptocurrency is decentralized unlike the traditional currencies, which are otherwise managed by a central authority. A cryptocurrency remains to be finite in number and equated sometimes to precious metals like gold and silver. In addition, you may consider knowing the Future Of Bitcoin before you start your trading journey.
- Cryptocurrency is mainly created through a fully fledged mining process. It consists of some complex problems to solve by using powerful computers, mostly as rewards for making some successful transactions.
- The cryptocurrency exchange mostly results in some more cryptocurrencies to be added in the global platform.
- Most of the cryptocurrencies are known to use the power of blockchain, for managing and recording transactions.
- Then you have various entities to maintain said transaction records. That makes the technology highly secure for the investments to be made.
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Number of cryptocurrencies available and their current worth:
As per some of the leading platforms available, there are over 16,000 cryptocurrencies to invest some bucks in and they are subject to vary in terms of value. Bitcoin’s market capitalization is around $900 billion, and it is considered to be the largest cryptocurrency in the market, even to this date with new currencies getting introduced at a quicker pace.
If you go by facts, then it would not take you much time to figure out the fact that the second largest cryptocurrency in the market, Ethereum, has got a net worth of more than $500 billion in today’s world as stated by various surveys.
- It is pretty difficult to estimate the total size of the market based on all cryptocurrencies. It is because, unlike the public equities market, it is hard to come across official data sources for the cryptocurrency market.
- Some estimate that the total size of the cryptocurrency market will be around $3 trillion.
- Other than transfer of value, each one of the cryptocurrencies will have different features, revolving around their technicalities.
Key features to focus at:
Before you catch up with the best cryptocurrency to invest some bucks in, it is highly recommended to check out some of the features beforehand. It helps the beginners to make the best decision to consider.
- Some of the recent additions in the list are Tezos, Dogecoin, ZCash, Ripple, and EOS. Some of the digital currencies will use the same core technology like Bitcoin and others deal with innovative technologies.
- The standout feature of cryptocurrency is that these coins are not controlled by any individual or any organization in particular, unlike the traditional currencies.
- Cryptos are not quite issued or controlled by the government or any central authority, which is the case with regular paper currencies.
- Cryptocurrencies are noted to be open-source in nature and run on a network of computers. They are mostly available to anyone who can participate.
- The best part is that you get to transfer cryptocurrencies globally all the time and don’t have to take help of a middleman to do so like a bank or a payment processor. Even though there is no central authority involved with the task, still cryptocurrency is able to maintain its security level.
The current crypto market:
As per the latest report in May 2021, the total worth of the cryptocurrency market stands at $1.7 trillion. There are more than 10,000 cryptocurrencies listed during that time and this number is known to grow with every passing day. Out of this notion, Bitcoin holds the largest share when it comes to market capitalization, which will amount to around $650 billion. The next ones will be Ethereum and Tether.
People are now accepting cryptocurrency more than ever and this acceptance rate is going to grow in upcoming years as well. Right now, so many online and retail store owners are using these virtual coins to make payments from the comfort of your home. It is a sign of potential growth.
Bitcoin is the ultimate game changer:
Bitcoin has actually emerged as the golden coin in terms of virtual cash. It was the first crypt to be ever developed through the power of blockchain and also changed the way people used to think about virtual money. So, starting off with it is a good call for beginners.