We are back with another amazing and much-needed blog, in this blog we will talk about cryptocurrencies. As you know there is a trend going on in India and around the globe of bitcoin(a form of cryptocurrency).
Many investors jumped on bitcoin and the market cap reached $1 trillion in no time. After reading this blog you will gain very much knowledge about cryptocurrencies.
What is a cryptocurrency?
The first thing you have to know is what is cryptocurrency is all about.
A cryptocurrency is a form of digital currency that you can use to buy goods and services online. It uses an online ledger with strong cryptography to secure online transactions.
Types of cryptocurrencies:
You have understood what is cryptocurrency now I will tell you 10 types of cryptocurrencies.
1) Ethereum(ETH): The first cryptocurrency on our list is Ethereum. The market cap of Ethereum is $138.3 billion.
2) Litecoin(LTC): Litecoin was one of the first cryptocurrencies to follow in the footsteps of Bitcoin. The market cap of Litecoin is $10.1 billion.
3) Cardano(ADA): Cardano is a cryptocurrency that was created with a research-based approach by engineers and cryptography experts. The market cap of Cardano is $9.8 billion.
4) Polkadot(DOT): Polkadot is a unique proof-of-stake cryptocurrency. The market cap of Polkadot is $11.2 billion.
5) Bitcoin Cash(BCH): Bitcoin Cash holds an important place in the history of altcoins because it is one of the earliest and successful alternative to Bitcoin. The market cap of Bitcoin Cash is $8.9 billion.
6) Stellar(XLM): Stellar is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions. The market cap of Stellar is $6.1 billion.
7) Chainlink: Chainlink is a decentralized oracle network. The market cap of Chainlink is $8.6 billion.
8) Binance Coin(BNB): Binance coin is a utility cryptocurrency that operated as a payment method. The market cap of Binance Coin is $6.8 billion.
9)Tether(USDT): Tether was one of the first and most popular of a group of so-called Stablecoins. The market cap of Tether is $ 24.4 billion.
Bitcoin(BTC): Bitcoin is one of the most popular forms of cryptocurrency and it is also in trend nowadays, it can be considered a little safe than the other forms of cryptocurrencies. It was invented in 2008 and there are only 21,000,000 bitcoins in the world. the market cap of bitcoin as of August 2021 is $ 840 billion.
Should you invest in cryptocurrency?
If you know even a little about investing then you also know that investments are always risky and according to some experts cryptocurrencies is one of the riskiest investment of all time.
However, nowadays cryptocurrencies are one of the most hottest commodities in the market.
If you are looking after investing in Bitcoin then I would suggest you don’t just jump on it take a little bit of time, do some research about it and gain knowledge as much as you can and then you are ready to invest in cryptocurrency.
Disadvantages of Bitcoin investments:
1) Volatility: The price of bitcoin always change from a higher margin within few days it will fall so much down that you can’t imagine. It is a very unpredictable market. If you don’t want to suffer a huge loss then you have to be alert.
2) Online Hacking: Hacking is a big threat if you are a bitcoin investor. Many hackers target bitcoin to hack. Many hackers also use bitcoin as an illegal way of doing transactions.
3) Limited use: Bitcoin is accepted by very few merchants. Many companies have also declared bitcoin illegal. There is a fixed supply of bitcoin 21 million.
4) Wallets can be lost: If your hard drive crashes or a virus corrupts your hard drive, then your all bitcoin will be lost. You will be bankrupt from a millionaire.