What is Cryptocurrency | What Are It’s Types

What is cryptocurrency?

A cryptocurrency is a digital currency secure by cryptography.Many cryptocurrecies are based on decentralised or block chain network technology.

A DEFINITE FEATURE

cryptocurrency is not issued by any general authority, rendering them theoretically immune to government.

What is cryptocurrency and it's types

A cryptocurrency is base on a digital network that is distributed in whole world through computers.This decentralised structure allow it to exist and not in control of government.

Some expert believe Blockchain and new technologies will distrub many industries and law

The advantage of crypto business is that it is faster to make money and it is a blockchain system it is easy and cheaper way to make money that don’t collapse at a single point of failure.

 

Disadvantages

The disadvantage of cryptocurrency is that it take more energy from mining activities and also used in hacking system.

Cryptocurrency is refer Various algorithm and cryptographic technique that save the entry for example elliptical curve encryption,public private key.cryptocurrency can be mined, exchange and purchased or rewarded as work done by your blockchain.In cryptocurrency bitcoin are most famous coin and it is hardly used in retail transactions.cryptocurrecy values increase the trading and investing instruments.They are also used in outside country and across the border.

Blockchain is a technology based network in which blocks are connected by a set of information.Each block contain a set of transaction that is specific and independent network.

Every new block must be verified and being confirmed.

Expert says that Blockchain technology work as supplier chain and process of online voting and crowdfunding.

 

Types of cryptocurrency

There are many type of crypto trading many cryptocurrencies were created a comfort for the people who work on it by working on Blockchain

For example, Ethereum designed to be used as payment for verified work done on Blockchain.

Cryptocurrency types

When blockchain transitioned in September 2022 to proof of stake Ethereum inherited as an additional duty as blockchain staking system mechanism.

Ripple XRP designed to facilitate bank transfer between different geographies.

Because there are many cryptocurrencies on market and important to understand the type of cryptocurrency.

Because if you are looking for a coin which is worth investing so you have to knowledge about it,so it is important to get knowledge about cryptocurrency before investing on it..

Most of the time you listen about cryptocurrencies type by their name how these are different from eachother.

Some type you will find by the name if tokens :

XRP and ETHEREUM ( ETH )are two examples of utility token.They gave their specific functions according to their blockchain.

 

Transaction

Token design to be work as a payment method. Bitcoin is most famous of these Governance.

Token represents voting or the other right of blockchain ,for example uniswap.

 

Platform

The token support some applications which is used to built a blockchain like Solana.

 

Security

Token represents ownership of an asset for example stock has been tokenized.

MS token is an example of security token and if you find one of these token for sale then you can get a partial ownership of the Millennium sapphire.

 

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