What is cryptocurrency? A cryptocurrency is a form of digital cash that has high security. It is stored electronically; therefore, it does not have a physical existence. It is secured using cryptography which refers to the process of converting information into codes. Cryptography was used during World War II when it was important for an army to ensure the privacy and security of communication against enemies.
Why would anybody want to invest their money in cryptocurrencies?
These days, many people own cryptocurrencies as a form of investment. This is because putting your money in cryptocurrencies can be a very lucrative investment. Unlike investing in stocks where an annual profit of 30 percent is already considered high, you can profit by more than 200 percent (or even more) in a month’s time when you invest in cryptocurrency. Even if you compare it with other investments, it is easy to realize that investing in cryptocurrency is most likely the best option that can help you achieve financial freedom. This is also the reason why many investors in stocks, bonds, and real estate have turned to investing in cryptocurrencies.
How many types of cryptocurrencies are there?
Bitcoins and Altcoins
Altcoins are all other non-Bitcoin cryptocurrencies. Bitcoin is given legacy status being the first fully implemented cryptocurrency. Please note that all market capitalization and trading values given for the cryptocurrencies are accurate as of mid-September 2017. Some types of cryptocurrencies are Bitcoin, Ether, Ripples, Bitcoin Cash, Litecoin, Dash, Nem, Iota, and Dog.