Digital Currency is distinct from physical. Its properties are similar to physical currencies but can transfer easily with the help of internet. It allows instantaneous transactions and may be used to buy physical goods and services. It may also be restricted to certain communities such as for use inside an online game or social network. This is also known as digital money or electronic money or electronic currency. The main advantage of this currency is that it can be transferred to the bank or in your other wallets. The digital coin is to be designed for security, stability, and ease of use.
Digital Currency – Everything You Need To Know!
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What is Digital Currency?
In 1983 David Chaum introduced the idea of digital cash. In 1990, he founded DigiCash, an electronic cash company. After that PayPal emerged in 1998. In 2008, bitcoin was introduced, which marked the start of Digital currencies. The US Department of Treasury said that digital currency operates like traditional currency, but does not have all the same attributes — as in it doesn’t have a legal tender. However, it is in the form of virtual currency that is electronically created and stored. There are different types of system of digital currency like Centralized systems, Mobile digital wallets, Decentralized systems, Virtual Currency.
Types of Digital Currency?
Here I am listing the best examples of digital currency in which some currencies are new and some are old in the crypto market. Let us take a look at some of the top ones: –
[table id=62 /]1. Litecoin (LTC)
Litecoin was launched in the year 2011 and it is the initial cryptocurrency which follows bitcoin and was often referred to as ‘silver to Bitcoin’s gold’. This coin was created by Charlie Lee, an MIT graduate and former Google engineer. The concept of Litecoin is based on an open source global payment network which is not controlled by any authority and it should be used “scrypt” as a proof of work. Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate same as the BitCoin and hence offers a faster transaction confirmation.
2. Ethereum (ETH)
Ethereum is launched in 2015. It is a decentralized software platform that enables Smart Contracts and Distributed Applications (ĐApps). It is used to build and run without any downtime, fraud, control or interference from a third party. Since 2014 Ethereum has launched its pre-sale version which was received an overwhelming response. Ethereum applications are run on its platform-specific cryptographic token. Ethereum can be used to codify, decentralize, secure and trade just about anything. After the attack on the DAO in 2016, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC). At that time it has a market capitalization of $4.46 billion and second after Bitcoin among all cryptocurrencies.
3. Ripple (XRP)
Ripple is a real-time global settlement network which offers instant, certain and low-cost international payments. It enables banks to settle cross-border payments in real time with end-to-end transparency including at lower costs. Ripple was released in the year 2012 and its currency has a market capitalization of $1.26 billion. Ripple’s structure doesn’t require mining, it required to reduce the usage of computing power and minimizes network latency. the current plans of Ripple are to distribute XRP primarily “through business development deals, incentives to liquidity providers who offer tighter spreads for payments, and selling XRP to institutional buyers interested in investing in XRP.”
4. Dash
Dash (originally known as Darkcoin) is a secretive version of Bitcoin. It offers more anonymity as it works on a decentralized master code network that makes transactions almost untraceable. Dash was launched in January 2014 and it increases its fan following in a very short span of time. It is also known as DarkCoin. This cryptocurrency was created and developed by Evan Duffield and can be mined using a CPU or GPU. In March 2015, ‘Darkcoin’ was rebranded to Dash, which stands for Digital Cash and operates under the ticker – DASH.
5. Monero (XMR)
Monero is a secure, private and untraceable currency. This is the most secure currency and this open source cryptocurrency was launched in April 2014 and soon spiked great interest among the cryptography community. The development of this cryptocurrency is completely donation-based and other community-driven. Monero has been launched with a strong focus on decentralization and scalability and enables complete privacy by using a special technique called ‘ring signatures. In this technique, there appears a group of cryptographic signatures including at least one real participant – but since they all appear valid, the real one cannot be isolated.
6. Zcash (ZEC)
Zcash is a decentralized and open-source cryptocurrency. It was launched in the year 2016. Zcash offers privacy and selective transparency of transactions. Thus, like https, Zcash will also provide extra security or privacy where all transactions are recorded and published on a blockchain, but the other details such as the sender name, recipient, and amount remain private. Zcash offers its users the choice of ‘shielded’ transactions, which allow for content to be encrypted using an advanced cryptographic technique or zero-knowledge proof construction called ZK-SNARK developed by its team.
7. Bitcoin (BTC)
Bitcoin is a digital currency created by the mysterious Satoshi Nakamoto. Like other currencies, bitcoin can be used to buy items locally and electronically. As a new user, you can use Bitcoin without understanding all its technical details. Once you install a Bitcoin wallet on your mobile phone or computer, it will generate the first Bitcoin address and you can generate more whenever you need them. After creating bitcoins, you can use them for all types of real transactions. You can change coins into any currency and redeem your coins in your bank account. It is also Cryptocurrency and launched in the year 2009.
Bitcoin is created as a reward for a process known as mining. Bitcoin payments are processed through a private network of computers linked through a shared program. According to research by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. At that time 1 BTC is equal to $5534 (US Dollar). Also, Check read A Complete Guide To Bitcoin.
8. Chinacoin (CNC)
Chinacoin is a litecoin-based digital currency that uses the scrypt password-based key derivation function. At the moment, It’s generated in 60-second blocks with an about 88 coins per block. It is also known as “The People’s Bank of China” (PBOC) and China develop its own digital currency in the worldwide market of cryptocurrency. This coin was launched in the year 2014.
Watch this video tutorial to understand digital currency in brief:
Conclusion:
If you are looking to invest some money in the any of the above crypto currency, then i would suggest you to start with Bitcoin. Because in few last months its price is increased above 7000$.
As soon as you’ve invested in bitcoins, there is no looking back. You can not anticipate your price to become double in an hour. But give it time and patience, it will skyrocket.
Try to Comprehend the market by Studying the pros and cons carefully. If you see that your cryptocurrency worth falling down, then trade it off quickly for additional types. This way you will save yourself and might even manage to buy the identical cryptocurrency later with a lesser speed due to this price downfall.
For example, State Bitcoins value start falling, you can trade your bitcoins to get Ethereum. Now keep it there and see the Bitcoins Development rate. Once it falls down to a good amount, it will again start rising up (due to the simple fact that individuals will begin buying after the prices come down). That moment is a golden moment. Again commerce off your Ethereum for Bitcoins and you can buy more Bitcoins at precisely the exact same pace. That’s how you can make the profit.
One Last advice is that if you have already invested, do your best not to sell it off. Exploit it nicely. Trade it for different cryptocurrencies. Play with it. If you sell it off you will not have to buy bitcoins at the old rates. Maintain it in mind while dealing with bitcoins.
Wrapping Up
I hope you made use of our Digital Currency bitcoin, didn’t you?
In case you have any doubts regarding this, don’t forget to leave a comment below. I will reach out to you at the earliest.
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