Cryptocurrencies have proven to be one of the best investment types over the years, despite many ups and downs in the global market. It is also true and individuals looking out to invest in it must be mindful that saturated tokens can wipe out your savings overnight. So as a beginner you need to figure out if cryptocurrencies are actually worth investing in for you.
- Which was the first cryptocurrency and when was it introduced?
Bitcoinwas launched in 2008 and it was the first cryptocurrency, and it remains by far the biggest, best-known, and most influential. In the decade since, Bitcoin and other cryptocurrencies like Ethereumhave made a position in the market as digital alternatives to money issued by the authorities.
- How is cryptocurrency created?
Cryptocurrency is created through mining, this process involves very complex problems being solved by powerful computer hardware and resilient software, usually as a reward for making successful decentralized digital money transactions. Alternatively, the exchange of crypto often leads to more cryptocurrencies being introduced in the world.
- How many cryptocurrencies are there in the
There might be variations in the numbers when you read it as the market is adding new cryptocurrencies every month. Reportedly, there are over 20,000 listed cryptocurrencies in circulation at the time and this number is only bound to increase. Out of this, Bitcoin has the largest share in the market followed by Ethereum and Tether.
- What is
Blockchain is essentially a digital ledger of transactions or a system in which a number of transactions made in bitcoin or any other cryptocurrency are maintained across several computer systems that are linked in a peer-to-peer (P2P) network.
Many cryptocurrencies use blockchain to manage and record transactions, wherein multiple entities maintain identical transaction records, making it a highly secure technology for your investments.
- Why invest in Bitcoin?
In addition to being extremely secure in nature, Bitcoin is also fast and completely transparent. For instance, every transaction made through Bitcoin is recorded in a public ledger that can be visible to all. It cannot be counterfeited or forged in any way. Blockchain transactions are also irreversible, reducing the chances of fraudulent activities and making your investments even more secure.
- Why are there so many cryptocurrencies?
Most cryptocurrencies active in today’s times are derived in some or the other way from Bitcoin, which works on open-source code and a censorship-resistant architecture. This means anyone can copy and modify the code and generate their own new coin.