CRYPTOCURRENCY AN ALGORITHMIC ASSET: A blog about what a cryptocurrency is and how they work.

                   

Crypto Currency (or Cryptography) is a controversial digital asset
designed to function as a cryptographic medium of exchange to secure
your transactions, additional monitor units, and transfer assets.
Yet it is one of the greatest opportunities of our time.

It is an open source, peer-to-peer, digital currency. It is a decentralized
form of money that uses cryptography to secure financial transactions.
Cryptocurrencies rely on their users' computational power to support the
validation of new transactions and the creation of new units of a particular
cryptocurrency.

Decentralized control of each cryptocurrency works through blockchain,
which is the basis of public transactions, which functions as a distributed record.

 

WHAT IS CRYPTO?
According to Jan Lansky, the crypto may is a system that meets four conditions:


> The policy defines whether new cryptocurrency units can be created.
If new cryptocurrency units can be designed, the system identifies the
circumstances of the source with the ownership of these new units.
 

> If two different instructions for changing the purchase of the same
cryptographic units are entered, the system performs at most one of them.
 

> The system allows transactions to be conducted in a way the owner of
the cryptographic unit is changed. A statement transaction can only be
issued by an entity proving the current owners of these units.
 

> Ownership of cryptocurrency units can be shown exclusively on
cryptographically.
 

IS CRYPTOCURRENCY INVESTING A GOOD IDEA?

Cryptocurrencies can help diversify your portfolio, but there are certain
risks to be aware of. Current rules and regulations governing
cryptocurrencies offer investors some protection, but by and large, the
market is far less regulated than stocks, mutual funds, and other
securities. Here are some potential pros and cons of investing in digital currencies.

              

  PROS OF CRYPTOCURRENCY INVESTING

- Greater rewards. Compared to stocks and other securities, investing in
cryptocurrencies could yield much higher returns. In 2020, for example,
Bitcoin rose 159%.

- Liquidity. Liquidity measures how easily an asset can be converted into
cash or its equivalent. Popular cryptocurrencies like Bitcoin are more liquid
assets, which can be attractive to investors focused on short-term trading strategies.

- Transparency. Blockchain networks offer investors virtually complete
transparency, as new transactions are recorded for everyone to see. This
can make cryptocurrencies a much simpler investment compared to
more opaque investments like a hedge fund or a real estate investment trust (REIT).

CONS OF CRYPTOCURRENCY INVESTING

- Volatility. Cryptocurrencies can be extremely volatile, with large swings
in price movements. This volatility could put an investor at greater risk of
losing money when investing in digital currencies.

- Difficult to understand. Learning how to trade cryptocurrencies,
blockchain technology and mine digital coins can be more complicated
than learning how a stock, ETF or index fund works. That could reduce its
appeal to a newer investor who is just learning the market.

- Not hands-free. If an investor tends to have a passive investment
strategy, cryptocurrencies may not be the best choice. Trading
cryptocurrencies generally focuses on the short-term, making it
more suitable for active traders.

                    

THE 7 MOST INVESTED CRYPTOCURRENCIES IN THE WORLD


ஃ Bitcoin (BTC)

Bitcoin has been around for a long time such that it is regarded as
the synonym of cryptocurrency. With so many competitors in the
market, Bitcoin is the cryptocurrency with the most upside potential
as it holds 40% of the cryptocurrency market cap.
 

ஃ Ethereum (ETH)

After Bitcoin, it is the second-largest cryptocurrency as far as market
capitalization and is the most promising cryptocurrency to invest in.
It also has witnessed a productive year till now with consistent
market gains from December 2020 till April. It is steadily picking up
after the hard-hit in May.
 

ஃ Tether (USDT)

Tether was introduced in 2014 and is one of the primary
cryptocurrencies to be fixed to the US dollar. Tether is a blockchain-based
cryptocurrency. Tether is the third biggest cryptocurrency by market capitalization
and the smartest cryptocurrency to invest in.
 

ஃ Binance Coin (BNB)

Binance Coin is one of the cryptocurrencies that peaked after 2017.
This year was a fruitful year and the price of all cryptocurrencies rose
on it. However, later the price dropped in value. Due to its consistent
performance, Binance Coin has shown that it is one of the more
stable investment options with less risks. It is the most profitable
crypto to invest in.

ஃ Cardano (ADA)

Cardano is a type of cryptocurrency network and open-source
platform with the intention of creating a public blockchain platform
for smart contracts. The reason why it is the most invested
cryptocurrency is because it takes less energy and power to
complete a transaction with Cardano than with a larger network like Bitcoin.
This makes for faster and cheaper transactions.

ஃ Dogecoin (DOGE)

Dogecoin is a cryptocurrency that was created as a joke by software
programmers Billy Markus and Jackson Palmer who wanted to poke
fun at the widespread growth of cryptocurrencies. In May 2021,
SpaceX announced a Dogecoin-backed ride to the moon, making it the
first cryptocurrency-funded space trip. This has made Dogecoin
very popular and is also one of the cheapest cryptocurrencies to
invest in.

ஃ Ripple (XRP)

XRP, Ripple's digital token, hit the headlines in April 2021
for outperforming Bitcoin and Ethereum and posting impressive market
gains compared to other cryptocurrencies. As a result, many people
rushed to invest in Ripple, making it the 7th largest cryptocurrency in
terms of market cap and the most profitable cryptocurrency to invest in.

Overview
                 

In decentralized cryptography, the entire system of cryptographic services
is produced collectively at a rate that is fixed and publicly known when the
system is created. In centralized banking and economic policies, such as
the Federal Reserve System, administrative committees or governments
control the money supply by printing units of fiduciary money or requiring
supplementary digital ledgers. In the case of decentralized
cryptocurrency, governments or businesses cannot produce new units,
and yet they are incompatible with other businesses, banks, or entities
that have property values.

The primary technical system based on decentralized cryptocurrencies
was created by a group or individual known as Satoshi Nakamoto.

The system of cryptocurrency, security, integrity, and balance records are
maintained by a community of mutually suspicious parties called minors
who use their computers to confirm the time of the transaction by adding
it to the registry under a specific timestamp scheme.