A Guide to Cryptocurrencies-What You Must Know as a Trader
Cryptocurrencies have gained a great deal of popularity in the financial world, owing to the security of funds, ease of transfer, speedy transactions and most importantly higher revenues that they’re capable of offering. Here, Platinum Crypto Academy provides you with an insight into the world of cryptocurrencies guide.
Introduction
After the launch of Bitcoin, world’s very first cryptocurrency, the virtual currency gained instant recognition from traders around the world. However, Bitcoin was essentially launched to establish a decentralized P2P network, which would further find a solution to the issue of double spending. In addition to that articular feature, there were other aspects to the network such as high speed, anonymity as well as global scale.
How the Network Works?
Cryptocurrency operates on the blockchain technology. Thus, every single participant in that particular system automatically becomes the recipient/sender as well as the validator. The decentralized network has been primarily designed to validate every transaction. Before performing any crypto transactions, it is first alidated to eliminate any double spending. Besides, the network features several validators and till the time each of them gives their approval to the transaction, it remains pending. Also, even if one of the validators chooses to not approve the transaction, it gets cancelled.
This process of validation is also known as mining and the ones who mine the currency receive their payments in cryptocurrencies. Miners can later use the virtual currency to buy a number of items via the internet or to purchase smart contracts.
Bitcoin
As the first ever virtual currency, Bitcoin was created in the year 2009. Unlike the traditionally used currencies such as EUR, JPY and USD among others, Bitcoin transactions are carried over a decentralized network. This makes them extremely safe and private. Guide to Cryptocurrencies utilizes encryption for verifying any fund transfers. As a result, banks or even the government of any country are allowed to interfere with the transactions or the currency’s rate.
Litecoin
Introduced in the year 2011, Litecoin is also regarded as the ‘Silver’ of the cryptocurrencies. Litecoin offers fast and secure transactions within the blockchain network. Traders can use the currency to buy goods via different websites. One of the biggest advantages of this particular currency is that it is capable of processing high volumes of currency in one single transaction. Thus, Litecoin is capable of processing eighty four million coins in comparison to Bitcoin that processes only around twenty one million coins.
Ripple
Ripple is based on a system (also known as Ripple), which is capable of processing a number of transactions. Ripple, like Bitcoin, enables users across the globe to perform transactions quickly and securely. Ripple also allows its users to transfer many other currencies including the traditional and cryptocurrencies like EUR, USD etc.
Ethereum
Launched in 2015, Ethereum also utilizes the blockchain technology for performing transaction. However, Ethereum isn’t used for purchasing simple products on the web. It is basically a system that supports smart contracts for investing in the Initial Coin Offerings of newly formed companies.
To sum up, cryptocurrencies are an excellent choice for traders who’re looking to amass higher profits in a fast and secure manner.