• Contact Us
  • Login
Register
TradersCult.com
Advertisement
  • Home
  • Brokers
  • Analysis
    • Technical Analysis
    • Fundamental Analysis
    • Strategies
  • Finance Basics
  • Crypto
  • Broker Finder
No Result
View All Result
  • Home
  • Brokers
  • Analysis
    • Technical Analysis
    • Fundamental Analysis
    • Strategies
  • Finance Basics
  • Crypto
  • Broker Finder
No Result
View All Result
TradersCult.com
No Result
View All Result
Home Crypto

Cryptocurrency – What is it?

Learn what you need to know about Cryptocurrencies

Traders Cult by Traders Cult
March 22, 2021
in Crypto
Reading Time:4 mins read
0
cryptocurrency-what-is
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

What is a Cryptocurrency?

Cryptocurrency is a decentralized method of payment done online for goods and services. Many companies have produced their very own coins known as tokens, and these digital coins are traded particularly for the goods or services the company offers. This act requires the exchange of physical currencies for cryptocurrencies to have access to goods and services.

The good thing about this cryptocurrency is the decentralized nature. Cryptocurrency operates by using a technology called Blockchain. Blockchain is a decentralized technology that is distributed across several digital assets to manage, record, and authorize transactions. Blockchain has tight security and cannot be manipulated by any government agency or centralized body.

According to a market research over 6,700 several cryptocurrencies are traded publicly. Cryptocurrencies continue to grow rapidly, penetrating the market and generating more investors. The cryptocurrency started by raising coins through the ICOs initial coin offerings. As of February 18, 2021, the total value of bitcoin was at $1.6 trillion,  and the entire worth of the most popular cryptocurrency Bitcoin was at $969.6 billion.

Types of cryptocurrencies

There are different types of cryptocurrencies that investors look out for, they include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Chainlink
  • Cardano (ADA) etc.

How does cryptocurrency work?

A cryptocurrency is a means of decentralized and well-encrypted digital payment. Unlike other fiat currencies like the US dollar, and the Euro, there is no central body that supervises and regulates the price of the cryptocurrency. Rather, these transactions are widely distributed among all cryptocurrency users throughout the internet.

Bitcoin is the very first cryptocurrency to ever exist. It is a peer-to-peer electronic cash system that was founded in 2018 by a technician that goes by the alias Satoshi Nakamoto. Nakamoto illustrated Bitcoin as an electronic system of payment founded on cryptographic confirmation rather than on trust.

The cryptographic confirmations appear in form of transactions that are confirmed and recorded in form of a ledger called a Blockchain.

What is a blockchain?

A blockchain is referred to as public, spread ledger that reports transactions in code. It is more like a checkbook that is spread across several digital platforms around the world. Transactions are listed in blocks that are joined together with previous cryptocurrency transactions to form a chain.

The CEO and co-founder of the African cryptocurrency exchange Quidex by the name Buchi Okoro described Blockchain as a book where you jot down everything you spend money on each day. Each page is identical to a block, and the whole book is similar to a blockchain.

Blockchain gives everyone who uses a cryptocurrency the right to generate a copy of this book, thereby creating a unanimous transaction record. The software records every new transaction as it occurs, and each copy of the blockchain is recorded simultaneously with fresh information, storing all data identical and authentic.

To combat fraud, every transaction is examined by using one or more main confirmation methods. Proof of work or proof of stake.

Bitcoin and the modern cryptocurrency growth

bitcoin-rising-2021Bitcoin is generally known as the first contemporary cryptocurrency. The first cryptocurrency to be used publicly as a means of exchange combined with decentralized control. It was initially established in a 2008 white paper publicized by Satoshi Nakamoto.

Nakamoto published Bitcoin officially in early 2009, and a committee of eager supporters started exchanging and mining the currency. By the ending of 2010, other cryptocurrencies began to appear, including Litecoin and several others.

In the 4th quarter of 2012, WordPress became the first primary company to approve the use of Bitcoin as a form of payment. Other companies including Newegg.com (an online electronics merchant), Microsoft, Expedia followed suit. Several other companies have already accepted Bitcoin as a legal form of payment.

Since there are other cryptocurrencies broadly accepted as a legal form of payment for various companies, such as Ethereum. So many people are investing in cryptocurrency because of the recent growth and popularity. Cryptocurrency is gradually taking over the finance world. The good thing about cryptocurrency is the ability to store it in a crypto wallet while the value increases; thereby increasing your profits, but also bear in mind that it is highly volatile, and the price isn’t always stable. Recently Ethereum seems to be gathering momentum and increasing rapidly, but Bitcoin remains the number one crypto in the world.

Traders Cult

Traders Cult

Traderscult.com is a community of independent traders, working on Forex and other financial instruments since 2015 with the Educational Trades brand. Our purpose is to support traders experience through educational materials, videos, courses, reviews and more.

Related Posts

Best Mining GPUs in 2021 from Traders Cult
Crypto

Best Mining GPUs

May 11, 2021
how-bitcoin-mining-works

Bitcoin mining – How it works

March 17, 2021
Next Post
eToro broker allows copy trading and more

eToro: is it suitable for you?

Please login to join discussion

Suggested

Head-and-shoulders-trading-patttern

Head And Shoulders Pattern – How it works and how to use it

March 5, 2021
plus 500 review

Plus 500: is it suitable for you?

IQ-Option-Review-Traders-Cult

IQ Option: is it suitable for you?

Browse by Category

  • Analysis
  • Brokers
  • Crypto
  • Finance Basics
  • Fundamental Analysis
  • Signals
  • Strategies
  • Technical Analysis
TradersCult.com

  • Home
  • Privacy Policy
  • Contact Us

© 2021 Traders Cult - General Risk Warning: The financial products offered by the companies presented here carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. All materials included in this site are NOT AN INVESTMENT ADVICE. Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage

No Result
View All Result
  • Home
  • Brokers
  • Analysis
  • Finance Basics

© 2021 Traders Cult - General Risk Warning: The financial products offered by the companies presented here carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. All materials included in this site are NOT AN INVESTMENT ADVICE. Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.