Home Bitcoin Tips Are You Getting the Most Out of Your CRYPTOCURRENCY?

Are You Getting the Most Out of Your CRYPTOCURRENCY?

by bitcoinmining

The term cryptocurrency derived its meaning from a technique called encryption which offers security to the network. This is a modern network oriented and a digital asset that is fitted to computers in order to create some decentralization and a proper control central and even government authorities. This article is about types, advantages and disadvantages of cryptocurrency.

Types of cryptocurrency.

So far these are the types of cryptocurrency that are widely popular across the globe.

  1. Bitcoin.

This is a cryptocurrency that was invented back in the year 2008 by some unknown people who used the name Nakamoto Satoshi . Bitcoin applies the technology of peer to peer when operating with banks or centralized authorities, management of finances .It involves massive usage of network and with no particular ownership or control which gives every Tom, Dick and Harry  an opportunity to use it.

Bitcoins can sometimes be used to purchase a merchandise unknowingly. Nevertheless, international transactions are cheap and much easier since bitcoins are not for a particular country or group of people and it is under no regulations. It also lacks payment of credit cards and small business enjoy them.

Transfers of bitcoins

One is free to send bitcoins to others using computers or mobile phone apps . It has no big difference compared to digital sending of cash

An example of an exchange rate

  • Litecoin

Litecoin was initially created in the year 2011 by a former employee of Google by the name Charlie lee who was a great fun of blockchain  and had to poke some holes on Bitcoin such us slow mining procedure and prolonged transaction. It was majorly created to handle larger transactions in order to minimize bottlenecks which were associated with bitcoin. It also ensured there was a multi drop in overspending.

How litecoin works

This is an online based network used in sending payments from an individual to another. It is distributed to peers meaning it is not under any control of government or any other entities. The system it uses during payment does not involve handling currencies physically so it encourages the use of it’s unit account thus the name Litecoin with the symbol LTC . This is the reason behind the categorization of litecoin as either digital or virtual currencies. Furthermore, you can buy and sell litecoins at different rates of exchanges which are available at the online platform.

  • Ethereum

This is a blockchain with a known origin and a decentralized operating system which allows excellent contract and functionality. It is among the largest when it comes to capitalization in market .Ethereum was started as a proposal back in the year 2013 by Buterin a researcher in cryptocurrency. This was further developed in 2015 . Ethereum has a machine that is virtual, replicated and decentralized also known as EVM . The following year they experienced a major loss as a result of theft which involved over $50 million  and resolved to splitting it into blockchains of two. Ethereum is now under some developments and plans, a move to upgrade into ethereum 2.0 .

Ethereum logo

  • Bitcoin cash

Meaning of Bitcoin cash.

This is a type of cryptocurrency that was formed in the second quarter of the year 2017 from Bitcoin. It has an increased number of blocks which allows processing of more transactions. It was further split to form another fork called satonis version (SV).  According to Nakamoto who invented it, this cryptocurrency was meant for day to day transactions . For many years it has gained an overflow in transaction and an increase in price and this is why it ended up splitting.

Other types of cryptocurrency includes:

  • Stella
  • Ripple
  • Neo
  • Rota
  • Cordano

Why choose cryptocurrency.

  1. Transactions

Transactions involve key players and it takes place on the basis of no middleman  since it majorly depends on network. This makes trailing audits much easier  and it also avoids confusion when it comes payment .

  • Transaction is more confidential.

Under the systems of credit and cash, the history of transaction may end up being the document used in reference for the credit or bank agency involved. At the lowest level it may involve a revisit on your balances to ensure availability of enough funds for more transactions

Another benefit of this is that in each and every transaction one makes there is a special exchange and interaction among the parties.

  • Transaction Fees

You should be under no doubt when it comes to revising your bank statements since transaction fees are not charged .

  • Easy access of credit.

Digital transfer of data is one of the major factor that speeds up transactions in cryptocurrency

 The services involved are largely available for those with good network connection.

  • Trading internally is easier

Even though cryptocurrency is not globally legalized, they do not involve much interest and exchange rates or any other charges employed by a country. This one also applies to peer to peer transactions.

Disadvantages of cryptocurrency.

  • Cyber security

Being a digitalized technology, it is highly subjected to breaches of cyber security and many a time it ends up in the hands of internet hackers. Multiple losses have been recorded and this has discouraged some people this making them to go back to their old methods.

  • Rules and regulations

The fact that it is not secured and has no regulations is a major threat to safety.

  • Payment

High rate of fluctuation experienced in the market in most cases makes the investors shy away. With cryptocurrency as a payment mode one can not even be sure of the price because it can even change within an hour.

My take

As far as this digitalized technology in dealing with currency is concerned, it is so much important to know its advantages and disadvantages. This knowledge is greatly important since it will aid in making right decisions and avoiding traps which might end up being your major drawback.

Cryptocurrencies were introduced to enhance day to day transactions using technology .

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