CRYPTOCURRENCY; A GLOBAL PHENOMENON
I struggled to write this post as I felt like I had little or no knowledge about cryptocurrency.
What exactly is cryptocurrency? Is it legal? Is it safe? What does the future hold for cryptocurrency? This and many more questions race through my mind.
The world is evolving and cryptocurrency is becoming a global phenomenon in recent years.
Prior to now, I have never been involved in cryptocurrency as the concept appears to be very fuzzy. But I have heard exciting things about crypto that I find fascinating like cryptography, decentralization, blockchain, altcoins etc
According to Oxford Languages, Cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.
Entering the cryptocurrency market can be a complicated and daunting task but understanding the basic distinction between the various types of cryptocurrencies can help you manage risk and make better decisions in a volatile ecosystem.
Apart from Bitcoin there are thousands of coins and blockchain projects out there.
Cryptocurrencies are classified into two distinct categories: coins and tokens.
Just this morning I came across an article written by ledger academy about coins and tokens. I read through it carefully to understand their difference.
These are the take-aways;
-Coins are any cryptocurrency that has a standalone independant blockchain (Bitcoin, Ethereum)
-Altcoins are considered as coins that are not Bitcoin.
-Tokens are cryptocurrencies that do not have their own blockchain but live on another blockchain. As they live on another blockchain, they benefit from its technology. (ERC-20 tokens)
With the arrival of virtual currencies, there have been a change in the global economy.
Today, many people prefer to use cryptocurrencies instead of the traditional physical money. The main reason is that it is faster and easier to use.
Although, I have read other exciting articles on this platform that have been very beneficial, some of this things are still vague to me.
Please share your thoughts as I am willing to learn and find out more interesting things about cryptocurrency.
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