What does crypto mean? Is cryptocurrency an investment tool? What is the most famous cryptocurrency? 3 things you should know about crypto; here are the details.
The term ‘Crypto’ has been quite popular lately. When someone says crypto, many people think cryptocurrencies. So what does crypto mean? Are crypto and cryptocurrency the same thing? What is the most famous cryptocurrency? What is the relationship between crypto and blockchain? 3 things you should know about crypto, here are the details..
What does Crypto mean?
The word crypto means secret, hidden, or encrypted and actually refers to cryptography. Cryptography is the name that has given to the method for to block the accessibility of assets in the digital world. With this way, everything in the digital world can be encrypted. For instance; messages, passwords or contacts. Thus, no one can access these informations except you.
Today, the term of crypto has settled in people’s minds with cryptocurrency. The reason why using the cryptography for verification and security transactions during cryptocurrency transactions.
What Are the 3 Things You Should Know About Crypto?
1- The most famous cryptocurrency : Bitcoin
The most famous cryptocurrency, also known as virtual currencies or digital currencies, is Bitcoin, which was first released. Virtual currencies like Bitcoin are not depend on to any country. So, they are not affected by the country’s economic and special circumstances.
Also, no one has a control over such digital currencies. For this reason people can send money to each other easily without any intermediaries (such as a bank). In this process, there are no situations such as money transfer fee or waiting period. The only thing that you need for this type of transaction is; connection to the internet.
2- What Is Blockchain?
Whole digital currencies are using a technology which is called blockchain network. Each existing virtual currency has its own blockchain network. Also all the transfer transactions we mentioned are fulfilled over this blockchain network, which is not in control of anyone’s. In substance, we can say that blockchain is a data structure and demonstarates that certain events occur in a certain order.
Everything you can think about digital currencies, transactions, wallets and virtual currency is a blockchain concept. But it should be noted that; it is not possible to change or delete any transactions that were done with the blockchain network. The blockchain which was created with the blockchain network, can never be broken.
3- Is It A Cryptocurrency Investment Tool?
There are two different approaches about this issue. According to the first approach, cryptocurrency can be considered as a shopping tool. Even though there are few places where we can shop with virtual currency like Bitcoin, most businesses all around the world have begun to accept this type of virtual currency as payment. With this way, virtual money payments are becoming common day by day. But in the virtual shopping world, cryptocurrency is using in a widely way. Cryptocurrencies are used in many places such as betting sites, gift card sites, charities, auctions, video games, e-commerce systems.
According to the second approach, cryptocurrency is seen as an investment tool such as gold or oil. Because; the value of such virtual currencies like Bitcoin are quite high. Some of the major cryptocurrencies are according to the their values; Bitcoin (BTC), Ethereum (ETH), XRP, Litecoin (LTC), Stellar (XLM). Since October 2019, the sum of the market values of all major cryptocurrencies has been known as $ 194 Billion.
So are you interested in cryptocurrencies? Do you think it is safe? You can share in the comments.
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