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What is Cryptocurrency?

Cryptocurrency is a digital currency that is not regulated by any central bank or country and transactions are made by cryptographic methods. As we are moving towards a cashless society, cryptocurrencies are gaining in popularity. There is one huge difference between “normal” currency and digital currency: You can never take out the cryptocurrency to put it in your wallet.


Popular Cryptocurrencies

There are today over 1.300 different cryptocurrencies and the number is expected to rise. Of these 1.300, only about 350 have a market value of over $10 million, about 30 have a value of over $1 billion and only 7 have a value in excess of $10 billion.

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Five Known Cryptocurrencies

  • Bitcoin (BTC) was founded by Satoshi Nakamoto and launched in 2009 and is the most widely used and well-known of the cryptocurrencies. The currency was created to facilitate online transactions without the need for a third party to be involved.
  • Ethereums currency is called Ether (ETH) and is the second largest cryptocurrency founded by programmer Vitalik Buterin with the help of crowdfunding in 2015.
  • Ripple (XRP) was founded by Ryan Fugger in 2012 and is the cryptocurrency favoured by banks.
  • Litecoin (LTC) was launched in 2011 and has the highest transaction speed of the virtual currencies.
  • Monero (XMR) which was introduced in 2014 and uses a special encryption that makes all transactions 100% secure and cannot be traced.

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What is Bitcoin

Bitcoin BTC price

What is Etherum

Etherum Eth price

What is Ripple

Ripple Xpr price


What Affects the Value of Cryptocurrency?

An ordinary currency is affected by the country's economic and political condition and the trade balance, while supply and demand control the value of the cryptocurrency. Demand is increasing as more people accept the cryptocurrency as a payment method.

Is Cryptocurrency Legal?

Yes, cryptocurrency is legal. But there are countries that are sceptical of cryptocurrency and are reluctant to let go of the currency monopoly. The two great powers, the United States and China, have tried to prevent the cryptocurrency from gaining popularity, but China seems to have changes its mind and plans to introduce its own cryptocurrency on trial in a handful of cities.
Countries such as Japan and Germany are positive about the digital currency and want it to have a formal legal status. The EU is considering developing its own cryptocurrency to compete with Facebook's initiated Libra. If the EU goes ahead with its plans, their digital currency will be stable unlike the volatile Bitcoin.


Does the Cryptocurrency Have a Future?

As more countries become cashless and developments in cryptocurrency trading continue, it is unlikely that countries will ban virtual currency altogether. However, some of the existing smaller cryptocurrencies may disappear while the larger ones will have an easier time surviving.

Can you Invest in Cryptocurrency?

Yes, but keep in mind that all investments have their risks. The cryptocurrency has a higher risk than, for example, stocks and funds because the cryptocurrency market is not regulated by any bank or government. What attracts traders is that it is possible to make big profits on cryptocurrency speculation

Benefits in Investing in Cryptocurrency

crypto
  • An investment can provide a high return.
  • The value of the cryptocurrency is not governed by any central bank or nation but by demand.
  • Trading with cryptocurrency can be done anonymously where neither buyers nor sellers need to identify themselves.

Disadvantages of Innvesting in Cryptocurrency

  • Price changes can be very large.
  • It is difficult to understand how the cryptocurrency is structured.

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