What is Cryptocurrency: Meaning, Best Cryptocurrency, How it Works

How Cryptocurrency Works | Check Out Cryptocurrency Prices | Types of Best Crypto In India | What Is Cryptocurrency Details & Benefits |

If you are remotely connected with the internet then you must be aware of the terms cryptocurrency and Bitcoin. Today, in this article, we will be sharing with all of you the detailed explanation regarding the term cryptocurrency and we will also share with you all the meaning of it. We will be sharing with our readers the types of cryptocurrency and the best cryptocurrency to invest in. Make sure that you read the article till the last to get the information regarding how it works and the types of cryptocurrencies available in the market as of today. 

What is Cryptocurrency? 

Cryptocurrency is a digital currency that can be used to buy goods and services but this can only exist online. Bitcoin is also a type of cryptocurrency which was recently very popular among investors. You can easily use cryptocurrencies and exchange them online for goods and services. Nowadays, we see that many companies have issued their own currencies which are often called tokens and this is also a type of crypto. You can trade these tokens for the services that the company provides, however, to get crypto you will have to exchange real money. Cryptocurrencies are working using blockchain technology. 

What is Cryptocurrency
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How Does Cryptocurrency Work

Cryptocurrency is basically a digital asset that utilizes computer code and blockchain technology to operate. Cryptocurrencies do not require a need of a party that is a person, company, Central bank, or Government to operate and to manage the system. The blockchain will keep the track of the cryptocurrency transactions and the blockchain is maintained across computers that are linked together across a distributed network. The transactions in crypto protocols are combined into blocks and then these blocks are bound together in a record to keep track of everything that is happening on that particular blockchain.

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Best Cryptocurrency

Given below is the table indicating the cryptocurrencies popular in the market today and their market capitalization:- 

CryptocurrencyMarket Capitalization
Bitcoin$799.3 billion
Ethereum$341.8 billion
Cardano$71.5 billion
Tether$68.7 billion
Binance Coin$59.2 billion
XRP$43.6 billion
Solana$41.3 billion
USD Coin$30.4 billion
Polkadot$30.4 billion
Dogecoin$27.5 billion

Advantages Of Cryptocurrency

The first advantage of using cryptocurrency is that it is really easy to transfer your funds directly between two parties. You do not need any trusted third party like a bank or a company to transfer your funds among each other and all of these transfers are secured by public keys and private keys. The transactions are also secured with different forms of incentive systems. The public key is also available while using the cryptocurrency and a private key is available which is only known to the owner and the private key is used to sign the transaction which makes the transaction really secure for both of the parties and eliminates any slight chance of fraud. There are minimal processing fees and this helps the users to avoid steep fees charged by the banks or any other financial institutions for wire transfers.

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Disadvantages Of Cryptocurrency

Because all of the transactions which are occurring through cryptocurrencies are semi-anonymous in nature, it is most likely that they can be used for hosting illegal activities including money laundering and tax evasion. The authorities are always taking protections to avoid these kinds of thoughts by some incentive but cryptocurrencies are more private than other currencies available in the world today. There are many different types of cryptocurrencies that are more privacy-oriented and they are very difficult to trace which can be a thing to worry for the people of law to track illegal activities. 

How To Buy Cryptocurrency?

In order to successfully buy a cryptocurrency, you will have to download a wallet or an online application that will help you to hold your currency and you will have to create an account on an exchange. You will be easily able to transfer real money to buy cryptocurrency of any of your choice by using this online application. You can download a wide range of online applications as per your suitability and then exchange your real money to buy cryptocurrencies. 

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List Of Online Brokers

Given below is the table indicating some essential online brokers available for people to help them buy cryptocurrencies:-

Binance.USAccess to buy and sell more than 50 crypto
CoinbaseAccess to buy and sell more than 50 cryptocurrencies.
eToroTrading platform with access to 18 cryptocurrencies.
GeminiAbility to buy and sell 40 cryptocurrencies.
RobinhoodSeven cryptocurrencies including Bitcoin, Bitcoin Cash, and Ethereum.
SoFi Active InvestingOffers 20 cryptocurrencies for trading including Bitcoin, Ethereum, and Litecoin.
TradeStationOffers trading for five cryptocurrencies, including Bitcoin, Bitcoin Cash, and Ethereum.
WebullOffers four cryptocurrencies for trading: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.