Cryptocurrency: This is the type of currency that has recently become very popular because of its many attractive features. Contrary to the traditional paper currency this is in digital form and is stored online without any physical access. The person who holds the account and the secure key to it can only access the account. It is accepted as a medium of payment across many nations now. Several advantages are associated with this form of currency that has made it widely popular. Furthermore, we will have a look at the types of cryptos in practice, how can you go about buying them, etc.
Types of cryptocurrencies: It is astonishing to note that more than 10,000 different varieties of cryptos are traded now. There are separate exchanges where these are traded like the securities market. Also, all of these types are not traded in every crypto exchange.
- Bitcoin: People commonly know cryptos as Bitcoins only because this was the first introduced one and most popular too. It is very secure and allows P2P transactions using blockchain technology. Transactions are very confidential and for those not involved, it gives only the read-only option.
- ADA coins: The Cardano bridge is another type of crypto that is also known as the ADA coin. It is peer-reviewed and so a high level of security and anonymity is maintained. After the initial stages of creating cryptos, a lot of research was undertaken to provide the most reliable form of currency, and thus came the Cardano. It uses cryptography created by experts. A lot of hope has been pinned on this form of currency as it has been created using much research.
- Monero: This is also a secure form of currency that was launched in 2014. It is untraceable adding to its advantage. This is known as a donation-based currency and the high level of security has also created fears in the minds of people regarding its usage.
How to buy?
Cryptocurrency can be bought from exchanges that trade in this type of currency. For this, you have to create a wallet online on the exchange where you decide to buy the currency. All your currency is stored in digital form here and you can carry out all transactions using it like you normally do with a traditional form of money. It has begun to be recognized as a mode of payment in many countries now.
Word of caution:
Before you buy the currency you must read the company’s prospectus to know its reputation. Look if any popular investor has invested in the exchange. Since it is expected to be of great value shortly, there are a lot of players on the field. Analyze the risk involved and act accordingly.