Cryptocurrency: A Beginner's Guide to Understanding the Craze

Do you know what Cryptocurrency is? It is an abstract digital currency which is decentralized. Cryptocurrency uses cryptography for security. It can be controlled independently without any central bank or government. It can make instant P2P (peer-to-peer) transactions between individual customers. People are now more comfortable storing their money in crypto wallets instead of their bank accounts and wallets. Crypto wallets and cryptocurrency transactions are done through blockchain. Basically they are controlled by creating blocks on blockchain. In this case customers can access their funds through a specific private key or login.

Bitcoin is the first and most popular cryptocurrency in the world. It was created in 2009 by an individual group or it could be a person called Satoshi Nakamoto. It has created a worldwide stir since its inception. Bitcoin has its own characteristics and also has its own blockchain. Since its invention, its supply has increased by mining. After the advent of Bitcoin, thousands of other crypto coins have entered the market. They have different characteristics. Many cryptocurrencies have their own blockchains. Cryptocurrency is a medium of exchange like other fiat currencies. However, new projects have been added to cryptocurrency over the years such as Smart Contract, DeFi (Decentralized Finance) and NFTs.

_source

We already know that Cryptocurrency transactions are secured by cryptography. At first we have to know what cryptography is. Cryptography is an advanced mathematical algorithm which stores and transmits data in a particular form which is unrecognizable. So that only those for whom it is intended can read and process it. It keeps the user's privacy and identity hidden. That is why its popularity is increasing day by day. Blockchain transactions are publicly viewable in code form. People will only know about the transaction, but will not be able to identify the person behind it. Hash functions and digital signatures are the main techniques of cryptography.

Cryptocurrency is advancing not only financially but also technologically. It has some amazing features which are more acceptable among users. Cryptocurrency's main feature is that it is decentralized. It needs no central government to regulate it. Rather, it is controlled automatically through the blockchain. Therefore, there is no possibility of any major crash in the future as a result of transactions here. Blockchain technology always keeps the record of any transactions made by individuals. And once a transaction is made it becomes public and there is no way to delete or erase it. While Bitcoin is supplied by mining, there are some cryptocurrencies that are created through programming. Ethereum is one of them which allows developers to circulate Smart Contract to create DApps (Decentralized Applications). Cryptocurrencies can be exchanged very easily. The transaction takes very little time and costs.

_source

There are various types of Cryptocurrency in the market. All have their own unique characteristics and identities. I am going to discuss some of the popular cryptocurrencies of the present world.

You already know that Bitcoin is the most popular cryptocurrency all over the world. Bitcoin has a limited supply of 21 million coins. The Miners use the mechanism of PoW (proof-of-work) to keep the network running. Ethereum is the most famous Altcoin after Bitcoin. It also follows the mechanism of Bitcoin with their unique mechanism of PoS (proof-of-stake). BNB is another popular coin in the crypto market. It was invented by the Binance Exchange. It has its own blockchain called BEP-20. I also mention Hive to the popular list. Hive also has its own blockchain called Hive Blockchain. There are so many altcoins such as LEO, POSH, BEE, POB etc. appear on the Hive Blockchain. It also has its own social media platform where people can earn rewards by creating contents. By the way $LEO is the most popular cryptocurrency in the Hive Blockchain. It can be earned by creating content on Leo Finance. Besides, this coin grows on the wallet through staking.

_source

Once upon a time crypto was only used for transactions. People use crypto to make transactions faster and more securely. But nowadays cryptocurrency is not only a means of transaction, but it has now become a major investment platform. People are now constantly investing their money in crypto. The price value of the crypto market has increased a lot in the last few years. So it is expected that in the near future the prices of the coins in the crypto market will increase by 2-5 times, which will give investors a huge profit. The crypto market is generally calculated in two phases. One is the Bull Market. Another is the Bear Market. In a bull market, buyers are very active so that the price value of the market continues to rise. Again bear markets are dominated by sellers, resulting in a decline in market value. Currently the bear market exists in cryptocurrency. So this is basically the best time to accumulate. If traders invest in good projects now, they can expect to get a lot of profit in the next bull market.

Crypto related topics are very extensive. In this post I have only expressed the various forms of cryptocurrency. But there are also many issues related to market capitalization and investment in crypto. You just need to DYOR (do your own research) before doing anything related to cryptocurrency. The crypto market is full of volatility and unpredictable. So don't be confident or be manipulated by anyone's speech. You can join any crypto community to get regular updates about Cryptocurrency. I suggest you join our Leo Finance community to get the update of everything related to finance.

_source

So with that I conclude my article. I hope you can get to know about Cryptocurrency in every sector and the importance of it from this post. If you want to know more about crypto or something related then definitely let me know in the comment box. I will try to answer your questions. I linked some keywords to Leo Glossary. You can click them out to know the definition to concepts of the keyword. It's nice to use them in my article.

At the end of the post I want to tell you about a great campaign that is now running on Leo Finance. This is an Adoption Campaign by @leofinance with a prize pool of $10,000. The campaign will continue for the next one month, so take this opportunity and participate with us. Click here to participate in the Adoption Campaign

_{Visit my Leo Finance profile to read my various kinds of articles. Also there are some of my makeup vlogs, you can watch them through 3Speak if you want. If you want me to write on any topic then let me know. I will try to gain knowledge about it and give you some good ideas through my articles.}

_{Honorable Mention: @khaleelkazi @anomadsoul @leofinance @leogrowth @brittandjosie @thekittygirl @ifarmgirl}

• _{Join Leo Finance Discord Server}
• _{Join The Terminal Discord Server}
• _{Leo Finance Adoption Campaign Announcement}
• _{Join The Adoption Campaign on Zealy}
• _{Visit my Leo Finance Profile}

Thumbnail and footer created with Canva. Page divider made by @barge. Other assets from Leo Finance Discord server. All content is mine unless otherwise stated

Posted Using LeoFinance Alpha