Cryptocurrency or crypto is a digital currency that uses a cryptographic system or what is often also known as blockchain as a system that maintains the security of the digital currency. If you want to invest in this instrument, let’s discuss what cryptocurrencies really are and what types of cryptocurrencies are suitable for your investment. Find out more on dan hollings the plan.
With impenetrable protection, these virtual assets are extremely difficult to manipulate. Unlike conventional currency, it has no physical form at all. In addition, you can only use this currency as a transaction tool in the online market. Even though it is only ‘legally’ used as a transaction tool in cyberspace, you can still exchange Cryptocurrencies with fiat currencies such as Yen, Dollars, and others.
So crypto is a term used to describe various types of digital currency, not just Bitcoin. This often happens because Bitcoin is a digital currency with a value of almost 70% of the total value of the global crypto market. In addition, you must have often heard the term crypto mining or the process of mining crypto, right? This term has recently become increasingly popular because this activity is occupied by many people because it is considered to have lucrative long-term profit potential.
Therefore, let’s first discuss what crypto mining is and what the actual process of mining crypto itself is.
Currently, cryptocurrency mining is getting more and more popular and is being encouraged by many people. Some countries even banned the bitcoin mining process because it was feared that it could cause various problems because the digital asset mining process consumes a lot of energy.
In the process, Bitcoin involves two basic activities, namely the delivery of information and verification of information which involves various software around the world to ensure that every transaction is recorded and cannot be traded twice. This process is called “mining” where this process is the act of recording every transaction into the blockchain so that everyone has the same information.
However, the process of adding to this blockchain is not an easy thing because it requires complex calculations that require high-specification software. Therefore, mining cryptocurrencies such as Bitcoin requires a large amount of capital because it needs to provide software with high specifications. There are more than 2,200 types of Cryptocurrencies that you can currently buy. This large amount is of course due to the large public interest in the currency.
- Bitcoin (BTC)
Bitcoin is one of the oldest and most popular types of Cryptocurrencies today. In fact, many people know the name Bitcoin before crypto itself. This digital currency first appeared and was introduced by Satoshi Nakamoto in 2009. Since its first appearance, Bitcoin has been favored by many people because of the ease with which it can be exchanged for fiat currencies such as Rupiah and Dollars. Not only that, the transaction fees offered are also relatively low and many e-commerce companies accept this currency as a medium of economic exchange.
- Litecoin (LTC)
In addition to Bitcoin, this type is also the one that many people talk about. Unmitigated, there are around 84 million more LTC that are now circulating in the virtual market. This proves that people are satisfied with the performance offered by Litecoin. Introduced in 2011 by Charlie Lee, Litecoin is actually a derivative of Bitcoin Core QT. That is, this currency is an ‘enhanced’ version of Bitcoin. There are several differences from Litecoin, namely the price is cheaper, faster, and more practical.
In 2013, a 19-year-old Russian developer named Vitalik Buterin started making Ethereum. Two years later, in 2015, Ethereum officially took the floor on the virtual market as a digital currency. Ethereum is very popular with the public because the disbursement is relatively easy and fast. In addition, Ethereum also has an excellent feature called Smart Contracts. This feature is an agreement that protects the seller and the buyer. It is because of this feature that Ethereum has become more flexible and can be used outside of its function as a Cryptocurrency.
Like two sides of a coin, Cryptocurrency has advantages and disadvantages. Here are the advantages and disadvantages of Crypto.
– Practical: Transactions with Crypto do not need the help of third parties such as banks. In addition, there are no complicated conditions that you must comply with to transact and own Crypto. This is certainly different if you want to become a bank customer, which has a myriad of conditions to fulfill.
– Fast: When compared to international transactions through banks, ideally it should take you more than a day to do it. With Cryptocurrencies, these transactions can be trimmed even in just a matter of minutes.
Protected from Evil Hands: As explained above, all Cryptocurrencies are protected by Cryptography which makes you not have to worry about their faith.
– Vulnerable to being used for illegal transactions: Due to its existence which is difficult to track and access by outsiders, many bad people out there are using this digital currency for illegal transactions on the internet.
– No Authority Body: All Crypto transactions are recorded and stored by a Blockchain system. That is, there is no human-led authority to oversee the course of this currency.
– Many Are Still Called Illegal: Because there are no physical goods, Crypto is currently still not fully accepted in the community. Even many people still consider Crypto as illegal goods.