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At the most beginner level, Cryptocurrency is just a Digital or Virtual Currency. It is secured using Cryptography techniques and algorithms. One of its main properties is decentralization. These decentralized networks, distributed computers, and distributed wallets are developed using Blockchain technology.
The decentralized network, and not being controlled by any authority make cryptocurrency not traceable and resistant to Government laws and regulations.
In cryptocurrency, the token is a term that refers to secure online truncations. Online Wallets are used to keep this digital money and make anonymous transactions. Crypto part of the word cryptocurrency denominates the encryption algorithms which are used to make it secure, un-traceable, and the implementation of other cryptography mechanisms.
History of Cryptocurrency
The history of cryptocurrencies started way back in 1983 with person David Chaum. Davis was an American cryptographer. In 1983, David developed a currency transaction system eCash. After 12 years of eCash, David developed another system DigiCash. Digicash was a cryptographic money transaction system. David made it to make secure and secret economic transactions.
But till yet there was no idea of cryptocurrency. For the first time, in 1998, the idea of Cryptocurrency was developed when Wei Dai there should be a cryptographic and decentralized money transaction system.
But the question Who created cryptocurrencies remains. Well, we got it. A person knows as Satoshi Nakamoto created the first cryptocurrency Bitcoin. It is now the most famous and largest cryptocurrency. What if we tell you, no one knows exactly who created cryptocurrency. You will say if no one knows who created cryptocurrency, then who is Satoshi Nakamoto? Well, that unknown guy is just known as Satoshi Nakamoto but his real identity is hidden. Satoshi becomes the 1st person to create cryptocurrency but he was not the 1st who created the idea of cryptocurrency, as mentioned above. Satoshi created Bitcoin so that he can develop such a money transaction system that is decentralized, encrypted, and controlled by no authority. So, people can use and take benefit from this unconventional and irregulated transaction system.
How cryptocurrency works
Fundamentally, cryptocurrency transactions are just peer-to-peer connections. These connections are established by using specific and secure online software, Cryptocurrency Wallets. The entity that wants to make the transaction uses wallets to transfer digital currency from one wallet to another. As mentioned above, all connections and transactions are encrypted by secure blockchain asymmetric encryption algorithms so that there needed a key to do transitions. That key is called the Private key and each wallet has a different private key. Then, that encrypted transaction is added into the queue waiting to be added into a public ledger of that cryptocurrency network. Queued-up transactions are added into the public ledger by a process, Mining. All wallet holders can have access to that public ledger.
In that public ledger, only the transferred amount is recorded, not the identity of the sender and the receiver. Both entities remain anonymous and encrypted. Behind every transaction, there is a set of keys(unique passwords) and the owner of those key sets owns the amount associated with those keysets. There can be thousands of transactions waiting to be added into the public ledger and this process can be so long. So, many transactions are combined as a block and added to the ledger. As the result, miners add those blocks to the ledger, in a sequence. As a result, miners get some reward in form of cryptocurrencies. Now you can understand the concept of Blockchain technology. Blocks are added to the ledger by a chain sequence.
Top Cryptocurrencies in 2021
There are more than 900 cryptocurrencies are circulating in the market. According to Forbes, top cryptocurrencies in 2021(till now) are given below:
||Currency||Current Market Cap
|4||Binance Coin||$56 billion|
|8||USD Coin||$23 billion|
Best cryptocurrency to invest in 2021
The crypto market is much un-stable. Every day got a new trend in this market. May 2021 proved not a good month for cryptocurrencies as a whole. But Jun 2021 was quite well. There are almost 1 thousand cryptocurrencies are circulating in the market so it is very difficult to know which currency is good for beginners to invest in. Just read this guide to get an idea.
It is among the most increased currencies price-wise in recent times. Economic Forecast Agency said that in July 2021 it can beat Bitcoin to be the top-priced currency. So, invest in the rising currencies is a quite good idea.
Current value: $2329.42
No list of top cryptocurrencies can indeed be considered complete without Bitcoin. Bitcoin is the oldest, largest, and most valued cryptocurrency for years. So, it is a good investment for crypto investors. No matter how this market is going the Bitcoin always finds its spot – the top spot.
Current value: 35461.30
Cardona can be one of the best cryptocurrencies to invest in today. Now, it comes with the updated blockchain implementations and improvements. It can be your choice for long-term investment.
Current value: $1.38
Tether is a silent growing digital currency. It is known to be more stable than some popular cryptocurrencies like Bitcoin, and Ethereum. In recent times it starts gaining more popularity and investments. It can be a good choice for long-term investment.
Current value: $1.0
It is itself not a stand-alone cryptocurrency. Primarily, it is used to trade other digital currencies. Uniswap working method is to use Eherium’s blockchain network to make transactions for itself. Some expert says Uniswap can have potential to grab the top spot.
Current value: $20.69
Good investment practice is to invest in constantly raising values. Polygon is the only currency that is grown by 9,000% in 2021. It is only the first half of 2021. Now, you can understand the importance of investing in Polygon.
Current value: $1.11
According to Digitalcoin, Binance coin can coss the market value of $1200 till 2028. You can say it is not an effective fact but its value is constantly rising. This makes it one of the best choices for long-term investment.
Current value: $309.27
Bitcoin Cash is raising its value again after a slight down. It offers more transaction speed than others with fewer transaction charges from others. According to experts, there is a high potential to grow Bitcoin cash. Today, it can be the best crypto investment for you.
Current value: $536.35
Polkadot comes with some innovations in crypto trading. Thus, It is transforming the meaning of the decentration of currencies. Polkadot has high speed, more security, and is scalable. Polkadot is scaleable globally. This scalability feature is yet to come in other popular digital currencies.
Current value: $15.97
Ripple becomes more popular in recent times because Ripple won a lawsuit against The security and exchange commission. As a result, this proves a good thing for Ripple because after this its value starts increasing.
Current value: $0.6781
The Crypto market is a rapidly changing market. Above mentioned values are recorded on 4-July-2021. Check updated values here.
This blog is not the deep dive into cryptocurrencies but to tell you how this is working on a basic level.