Cryptocurrency: Can Its Volatility Serve as Profitability?

Cryptocurrency has been around for quite some time. There are several individuals who have invested in this. Many have invested in this volatile business. Some also question if cryptocurrency is indeed profitable.

There are already a lot of cryptocurrencies coming out. Some are easy to understand and others are not. The important part of cryptocurrency is investment. You have to know that you will invest in whatever cryptocurrency type you will go.

To have a better view of cryptocurrency, let’s dig in to the different types and how it actually works. Here are the types of cryptocurrency that have been going around these years.

Bitcoin

This is the first type that came about. It is a digital currency that you are able to send to others. Bitcoin started in 2008 and grew faster between 2014-2015.

All transactions through Bitcoin are stored in a shared database called blockchain. When someone sends Bitcoins these are stored in the blockchain. All can see the transaction but only the owner of the Bitcoin can decrypt it. Although, everyone is given a private key for their Bitcoin.

Bitcoin is the biggest crypto to date. It is the first. The cool thing is since it is so popular, you can pay using Bitcoin. This is also easy to exchange in cash. There are a lot of stores that accept Bitcoin as payment.

Litecoin

Litecoin’s blockchain was a part of Bitcoin. This crypto used to be a fork of Bitcoin. When it was updated that was the time it split up from Bitcoin. The crypto is updated to improve what Bitcoin already has. Most of the functions are similar to Bitcoin but with different features.

This type of crypto is less expensive than Bitcoin. Although, it still needs more update to be at par with Bitcoin. Litecoin is best for small payments. It already will make transactions faster. This type has become more popular as the updates are done all the time.

A lot of people already trust this crypto. There are even those who are investing more on this type than the former one.

Token

Here’s a type of crypto that is unique in its way. While Bitcoin and Litecoin have their own blockchains, Token does not have one. Token is used on decentralized applications (dApps). This type uses tokens to purchase some stuff using dApps.

Some people buy tokens to sell it at a higher rate later on. You need to have Ethereum and NEO for this type of crypto. Token uses Ethereum and NEO’s blockchain to pay-off anything.

Ethereum

The currency of this platform is called Ether (ETH). People who use Ethereum are allowed to build dApps, token, and smart contracts. The good thing about this crypto is it will last longer. It is because the currency here is used for Token in doing transaction through dApps.

Most transactions made through Ethereum are fast. It can be done in seconds. In this age of cryptocurrency, Ethereum has been gradually building up. In time, it will be huge. As the technology updates all the time, and so will this type of crypto grow.

Ripple

Designed for bank use in order to make payments faster, Ripple is another blockchain technology that’s also known as the banker’s coins. Currently, a lot of bank partnerships are being worked on Ripple.

The good thing about Ripple is it is trusted by big banks. There are already banks who have partnered with this type of crypto. It seems that this cryptocurrency will have a better future since there are still more big banks thinking about partnering with it.

What About Cryptocurrency?

 

Most of us already have knowledge on these cryptocurrencies. There are some who are already investing. These cryptocurrencies will always require investment from you. There are advantages and disadvantages that have been shared ever since it started. You can always check cryptocurrencies and check also some neue Erfahrungen.

Bitcoin is the oldest of these cryptocurrencies. Most of the people already invested in this type. There are others and the important thing to consider is to know more about a certain type of cryptocurrency before investing. You have to know where your money will go.

Final Thoughts

In case you want to get into the cryptocurrency world, you need to understand each type. To know more means getting yourself safer all the time. It is money that you invest on. You have to make sure that you get more than what you have been giving out.

These are some of the types of cryptos that are already existing. You can choose from these types what you want. Bitcoin has been around and it is the first ever crypto made. It already did more for the rest of the people since it started. It can do more.

 

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James

James

James Scott is a general news and feature writer of Untitled Magazine. Prior joining the company, he previously worked as a senior writer in different publishing companies in New York.