Cryptocurrency is a digital or virtual currency which is supported by blockchain technology.
Bitcoin is one amongst of digital cryptocurrency that is familiar from the time of conceptualization.
- Both Coins and Tokens are referred as cryptocurrencies with unique difference.
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- Coins are built on their own blockchain. Ex, Ether (ETH) by Ethereum Blockchain.
- Tokens are built on their existing or another blockchain. Ex, Compound (COMP) a flavour of Ethereum Blockchain.
- All the cryptocurrencies except bitcoin are called as alternative cryptocurrencies i.e., altcoins.
- A Stablecoin is also a cryptocurrency that has same powers as other cryptos, but with steady value similar to traditional currencies like USD.
- Crypto Wallet is used to store your public and private keys. We can share the public key to anyone for transacting with cryptocurrencies, similar to a Bank account number wherein the private keys should not be shared as in a Debit card PIN number or OTPs.
- Cryptocurrency exchanges are trading platforms that allows you to buy and sell cryptocurrencies that can be exchanged.
Some of the cryptocurrencies are:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP (XRP)
- Tether (USDT)
- Cardano (ADA)
- Algorand (ALGO)
- Binance Coin (BNB)
- Dogecoin (DOGE)
- Polygon (MATIC)
- Internet Computer (ICP)
Points to consider:
- There is no third-party involvement that incurs less transaction fees.
- Everyone can view the transactions which facilitates increased transparency.
- Only few countries have cryptocurrency regulated.
- It is very difficult retrieve/recover a wrong transaction paid to an unintended recipient.
