Demystifying the concept of cryptocurrencies: Here is a ready reckoner

Demystifying the concept of cryptocurrencies: Here is a ready reckoner

The one clear thing is that there is no stopping the growth of cryptocurrencies. Many have tried, but it has only added fuel to fire as the appeal around cryptos only seemed to grow with the threats of banning or restricting them. Yes, there are skeptics, but many of them have also recognized the worth and value of this form of investment and are slowly jumping aboard the crypto ship. However, the complete concept of cryptocurrencies has still not been uncovered as people are still coming across newer aspects in this field. This could be because there are newer cryptos and other systems that are being launched time and again. 

It is important to demystify the concept of cryptos so that people enter and invest with as much accurate information as possible. If you are a newcomer, or even if you have been in these waters for a while, you can brush up on your concepts and gain better clarity.

What are cryptos: Essentially, cryptocurrencies are digital currencies similar to government-issued funds. They can be used to make trades, buy, or sell goods and services online. They exist in an electronic form and not as paper. ‘Crypto’ in cryptocurrencies refers to the encryption and codes that are used to maintain the official records of transactions. For example, if you buy USDT in India, you will get a private and public key that makes your transactions secure and tamper-resistant.

What is a blockchain: If you are into cryptos and investment, you will be hearing this word a lot. Blockchain is essentially a secure system to store data across thousands of systems in real-time. This is made possible using several complex mathematical calculations using a variety of hardware and software systems. This is the most important aspect of cryptocurrencies as the traditional method of storing data can be risky. Blockchains are more secure and keep the data unadulterated and are less susceptible to hacking. 

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What are the popular cryptos in today’s market: There are hundreds of cryptocurrencies that have originated since the inception of the first one – bitcoin.

  • Bitcoin – Despite the emergence of new cryptos every day, bitcoin has been and still is the most popular and dominant one in the arena. Even today, the bitcoin price in India is rising and reaching newer heights. This is because it is now secure in its position and has the highest market cap and value of any other cryptocurrency.
  • Ethereum – Any coin that is not a bitcoin is called an Altcoin. Ethereum is the most popular altcoin and is often called the silver to bitcoin’s gold. It has gained supreme popularity among the cryptos and has a steady and growing price even today. With the launch of Ethereum 2.0, this crypto has begun to gain even more traction. 
  • While BTC and ETH are the two most popular cryptocurrencies that exist in the market today, there are several others that have made their marks by reaching heights in the overall market cap. Ripple, Cardano, Solana, Tether, Polygon, Dogecoin, and many other cryptocurrencies are topping the charts as popular and great currencies to invest in.

What makes cryptos popular: There are many reasons for the ever-growing popularity of cryptocurrencies and why people are choosing to back them despite the warnings from several critics. 

  1. The fee and transaction rates for cryptos are very low. Especially when it comes to large-scale business transactions, the higher the rate, the more the loss. Dealing in cryptos eliminates this concern
  2. Since they are decentralized, the person is in complete control of their money and knows the exact amount needed to be transferred. Without a middleman, there is no interference.
  3. Cryptos are now available to purchase on several different online exchange platforms and are easy to obtain. All you need is a stable and secure internet connection.
  4. The expected returns and future of cryptocurrency are predicted to be fast-growing. With more and more people investing in cryptos, the market value is only predicted to rise. 
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Learn about the wide world of cryptos, bust the myths and invest with complete knowledge and guidance.