WHAT IS CRYPTOCURRENCY?
A cryptocurrency (or “crypto”) is a form of payment that can circulate without the need for a central monetary authority such as a government or bank. Instead, cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely.
Cryptocurrencies can be exchanged for goods and services, though they often are used as investment vehicles. Cryptocurrency is also a key part of the operation of some decentralized financial networks, where digital tokens are an important tool for carrying out transactions.
HOW MANY CRYPTOCURRENCIES ARE THERE?
More than 16,000 different cryptocurrencies are traded on the open market (publicly), according to market research site CoinMarketCap.com.
ARE CRYPTOCURRENCIES A GOOD INVESTMENT?
Cryptocurrencies may become more expensive, but many investors see this as pure speculation, not real investment. Because? Like real currencies, cryptocurrencies do not generate cash flows. So, in order to win, someone has to pay more than you for this currency.
ARE CRYPTOCURRENCIES LEGAL?
China has actually banned its use, but it is legal in the United States, and ultimately the legality of this varies from country to country. Also consider how to protect yourself from scammers who see cryptocurrencies as an opportunity to attract investors. As always, buyers be careful.
WHY ARE THERE SO MANY CRYPTOCURRENCIES?
There are 1583 cryptocurrencies listed on coinmarketcap.com. That is more than all the different types of fiat currencies in the world. All of these cryptocurrencies aim to use blockchain technology to revolutionize areas such as finance, healthcare, energy, storage, privacy and security, machine learning, payments, social media, utilities and logistics, and content ownership. Then there are those with utility functions. There is also a cryptocurrency group that is developing as an infrastructure. They allow it to integrate other cryptocurrencies into the network. The best example is Ethereum, with an Ethereum virtual machine that can generate multiple tokens on the network. Another important type of cryptocurrency that we commonly refer to as application or platform cryptocurrency. This type of cryptocurrency is built on the basis of additional currencies. A good example is the Augur cryptocurrency that launched on the Ethereum network.
TOP FIVE LARGEST CRYPTOCURRENCIES BY MARKET CAP
1. Bitcoin (BTC)
• Price: $29,155
• Market Cap: $557
2. Ethereum (ETH)
• Price: $1,797
• Market Cap: $219 billion
3. Tether (USDT)
• Price: $1.00
• Market Cap: $72 billion
4. USD Coin (USDC)
• Price: $1.00
• Market Cap: $53 billion
5. Binance Coin (BNB)
• Price: $305.71
• Market Cap: $50 billion