Understanding Cryptocurrencies and Some of their Kinds

Now, what is cryptocurrency is no longer a new thing for those who carry out investments. The reason is the presence of cryptocurrency is a development in the tools to make the latest payment transactions. So if you want to make any purchases from the internet using cryptocurrency. Paper currency is a tool used only for offline transactions.

1. Understanding cryptocurrencies

This cryptocurrency is a type of currency in digital or virtual form that can be used and has been guaranteed with cryptography so it is small to be counterfeited. Many cryptocurrencies use decentralized networks based on blockchain technology. The hallmark of cryptocurrencies is that in general their expenditures are not carried out by a central authority so that they are seen theoretically as more immune from government interference. Cryptocurrency has referred to the existence of encryption algorithms and cryptographic techniques that have protected these entries.

2. Types of cryptocurrencies

What cryptocurrency is already circulating and used by most people, so the existence of crypto is now becoming increasingly popular. The first blockchain base from cryptocurrency, namely bitcoin, is still considered very valuable to own. Current developments make the presence of thousands of cryptocurrencies with various functions and alternatives available. The types of cryptocurrencies that have competed with bitcoin are altcoins, litecoins, namecoins, ethereum, peercoins, EOS and cardano.

3. Advantages and disadvantages of cryptocurrencies

The use of cryptocurrencies has made it easy to transfer funds to two parties, so that a third party that is considered reliable is no longer needed. The disadvantage of using it is semi-anonymous, crypto transactions are widely used for illegal activities. However, cryptocurrency users understand and appreciate the anonymity of users more. That privacy is a protection for parties as reporters or activists under the government tends to be repressive.