Meaning of cryptocurrency
Cryptocurrency or crypto is the currency used in crypto futures trading. Unlike currencies of different countries and nations, there is no physical form of this currency. Thus, it is a digitally existing currency that uses the method of cryptography for transactions.
Cryptocurrencies are very different from the currencies of countries. These currencies do not have any governing authority, unlike national currencies. Instead of a centralized system, crypto has a decentralized one.
In this system, there is no regulation of transactions. However, all transactions made in different cryptocurrencies are thoroughly recorded. It also happens digitally. Thus, there is a physical record of cryptocurrencies or their transactions.
Since there is no physical form of cryptocurrency, it does not need banks. Thus, the transaction of such currencies is done independently of banks. Instead of banks, these currencies are stored in digital wallets. Every person that owns cryptocurrencies also owns a digital wallet.
Cryptocurrency is an advanced type of normal currency. This currency uses the encryption method to verify globally occurring transactions. The encryption method involves a lot of advanced coding. Thus, everything that happens with cryptocurrency is done with advanced coding.
Since cryptocurrency is digital, a crypto trading platform is also digital. If someone wants to buy or sell any cryptocurrency, they would have to find a good digital crypto trading platform.
The system in which all records of transactions of cryptocurrency are stored is called a blockchain. In this system, any currency holder can update, change, and check the records of the currency. Thus, this system is maintained by the users themselves. No third-party system or organization is necessary for maintaining this blockchain system.
Types of cryptocurrencies
When the system of cryptocurrencies started, there was only one cryptocurrency. Thus, all types of transactions and trading on btcc platform were done through only one cryptocurrency.
However, as technology advanced and people turned towards the internet, more cryptocurrencies began to emerge. Currently, there are around four major types of cryptocurrencies existing on the digital market. Apart from that there are other minor cryptocurrencies as well.
The first cryptocurrency that came into the digital market was Bitcoin. bitcoin futures and bitcoin trading began with the invention of Bitcoin. This cryptocurrency was founded in 2009.
Even after all these years, this cryptocurrency remains the most popular and traded cryptocurrency. This cryptocurrency was developed by a man named Satoshi Nakamoto.
After Bitcoin, another cryptocurrency called Ethereum was developed in 2015. Apart from being a cryptocurrency, Ethereum is also a blockchain platform. This cryptocurrency seconds Bitcoin in terms of popularity.
After Ethereum came Litecoin. As the name might suggest, Litecoin has some similarities with Bitcoin. However, unlike Bitcoin, Litecoin had the support of advanced technology during its development.
Due to that reason, Litecoin quickly developed into an innovative cryptocurrency. Hence, people who trade Litecoin can make faster payments and trades. In addition, it also allows them more transactions in a given period.
Ripple is also a cryptocurrency. It was developed in 2012. Apart from trading and buying, this cryptocurrency can also be used to track transactions. Apart from these currencies, others also exist. These are collectively called altcoins.