Are you curious to learn and understand how cryptocurrency actually works?
If yes, you have just landed on the right place to get the required knowledge and understand how cryptocurrency works in straightforward terms that anyone can understand.
In this article, I will list the top cryptocurrencies that have been around in the crypto space for some time since its launch.
I Will also talk about my honest and personal experience in the crypto space in 2021.
Keep reading till the very end and learn from my experience.
Also, read our related post here
Lets gets started
Meaning of cryptocurrency and how it works
Cryptocurrency is a digital currency that works through the use of cryptography for security; it operates independently without the Central Bank in its decentralized.
Cryptocurrency transactions are verified through a network of computers and stored on a public ledger known as a blockchain.
To ensure every transaction is transparent and secure and cannot be altered once it is recorded on the blockchain.
Cryptocurrency can be bought and sold on differents various online platforms known as crypto exchanges.
The value of cryptocurrency is decided and determined by supply and demand.
Unlike traditional fiat currencies, which are pegged to tangible items like gold or oil
Cryptocurrency can also be used to make purchases and send money worldwide.
cryptocurrency has many used cases and many advantages over traditional Fiat systems,
for example, you can instantaneously send cryptocurrency anywhere in the world without involving a bank.
Unlike fiat currencies, which require intermediaries fees and time to process.
that is how most people are swarming to the banks and pulling their funds out there,
realizing that cryptocurrency is a much more secure way to transact and interact with the global economy.
With cryptocurrency, you own your assets; no one can take that away from you.
Cryptocurrency can be transferred without needing any controller or regulatory institution like government or organization.
There is no central authority in the cryptocurrency ecosystem.
All the crypto transactions are controlled and managed by Blockchain technology.
Blockchain is a file in which all the cryptocurrency transaction data are recorded and stored.
It is possible to create decentralized currencies and control their operation online.
My personal experience with cryptocurrency
This is my Personal experience in the cryptocurrency space in 2021. We had a good time with the crypto bull run.
People were making a lot of money, including me; you could buy a coin today, and in the next 24 hours, it would skyrocket to a considerable profit.
Now, I want to use that bullrun incident in 2021 to explain something you should know about in the crypto space.
So in that 2021 bull run, there were a lot of tokens that were deployed into the crypto space,
and a lot of people fell victim to some of those newly launched tokens, known as (shitcoins).
Now here is the real experience
I also fell victim to one of those shitcoins that was newly launched called (safe moon)
I invested a lot of money and purchased the Safemoon token, and it did well for some months from the time it was launched.
Many people purchase the token as well, but as time goes by, the safemoon token has no available liquidity to withdraw and get cash from the safemoon token.
They started upgrading from version 1 to 2, which is how I lost the money I used to purchase the Safemoon token.
My point here is that no matter how trusted a new coin may look, it can never be compared to the ones that have been around for years.
A good example is Bitcoin; it has been around for a long time and has built a good reputation in crypto.
Assuming it was Bitcoin that I bought, my coin would have been valuable and available up until now.
So, that is why you have to be very careful while interacting with the crypto ecosystem. There are some risks and gains involved.
So always make your decisions in the crypto space and interact wisely.
The Most Popular Cryptocurrencies Are
Bitcoin:
It is the first and the most popular cryptocurrency deployed as the first coin in the crypto space.
Bitcoin was launched in 2009. Today, at the time of writing this article, Bitcoin still exists.
Ethereum :
It is the second-largest currency in the cryptocurrency ecosystem.
It allows developers to create different distributed decentralized applications and technologies,
that work on the Ethereum blockchain, and Bitcoin works on its blockchain separately.
Ripple :
Another long-lasting crypto right from the time it was launched is Ripple.
Bitcoin Cash :
Bitcoin Cash is another coin in the space backed by the most significant Bitcoin mining company and ASIC, the manufacturer of Bitcoin mining chips.
Although it has not been on for a very long time (unlike cryptocurrency like (Bitcoin)
However, it has taken its position among the top five cryptocurrencies with good market capitalization.
NEM :
this crypto project uses the proof-of-work (PoW) method,
there are other cryptocurrencies just like the NEM that use proof-of-importance (PoI),
which requires its users to already have coins in hand to purchase coins.
It encourages users to redeem their savings and track all their transactions to determine the user’s overall importance in the NEM ecosystem.
Litecoin :
It was created to serve as “digital silver” in response to Bitcoin’s “digital gold” image.
It is a branch of Bitcoin but unlike Bitcoin,
it allows block production four times faster and four times as many coins (84 million) in total supply, while Bitcoin has (21 million).
IOTA :
The ledger technology that is the invention of this crypto unit is called “Tangle” and requires the sender to provide proof of work confirming two transfers.
In this way, IOTA removed miners from the process.
NEO :
Neo is An intelligent contract network that enables the development of all types of financial contracts and third-party distributed applications.
While it shares mostly common goals with Ethereum since it was developed in China,
it may gain an advantage due to improved relationships with China’s regulators and local companies.
Dash :
A two-layer network. At the first level, some miners protect the network and keep records of transactions,
at the second level, controller nodes transfer transactions and enable InstantSend and PrivateSend-type transactions.
The first level is much faster than Bitcoin, while the second level is entirely anonymous.
Qtum :
A currency created by combining the technologies of Bitcoin and Ethereum and targets business applications.
The network increases the reliability of Bitcoin while enabling the use of smart contracts and distributed applications mainly used on the Ethereum network.
Monero :
A cryptocurrency that is very actively used due to its open and privacy-oriented principles with private transaction opportunities.
Cryptocurrency, unlike traditional currencies, is a digital currency that is traded in an encrypted manner and does not have a fixed exchange rate.
This encryption was developed to ensure that cryptocurrencies, designed as a medium of exchange that can replace cash, are secure and verifiable.
You can transfer value over the internet with cryptocurrencies whenever you want, wherever you want, to anyone you want.
Cryptocurrency has become an investment tool for many people today. It is used in a lot of countries around the world,
cryptocurrency has a huge market capitalization.
Can I Get Rich Off Crypto?
The answer to this question is Yes and No, depending on your situation in the crypto space.
That is precisely what will determine whether you can get rich off cryptocurrency.
Let me break it down and explain what I mean.
You could purchase some kinds of cryptocurrencies and then get rich off such coins.
At the same time, there are some cryptocurrencies you can buy, and they will not make you rich.
In a situation like this, a coin you purchase might be rug-pulled, or the market is not in good condition.
That is how some people end up losing their hard-earned money. I have been in the crypto space for some time and have seen a lot of crypto that has helped some people get rich.
Some crypto projects have made some people poor and broke.
This is an example of a coin that has helped many people get rich from it.
It is known as (SHIBA INU) this token has generated a lot of billionaires in the year 2021
Shiba Inu had done so well and printed a lot of money for some people who bought it earlier before it went viral.
Another good coin that has helped a lot of people to make millions of dollars is called (DOGE COIN)
This coin has risen from $0.004 to $0.71 per dogecoin, which was an all-time high (ATH)
Don’t get me wrong; I have seen a lot of other crypto projects that have not been able to be performed, like Dogecoin and Shiba Inu.
So the truth is that you need to put your money on a coin that will perform well to get rich off such coins.
But if you end up choosing a coin that doesn’t performs well, you will not be able to get rich off such coins.
Conclusion
For the fact that you have read the whole article till this point,
that alone has proved that you have learned one or two things from this article about how cryptocurrency actually works.
I have been able to explain the meaning of cryptocurrency, how it actually works, and how to use it.
Also, I have listed and talked about different cryptocurrencies in the crypto space.
The truth is that the most popular cryptocurrencies, which I have listed below, have the potential to stay for as long as possible.
Rather than the new ones just launched into the crypto ecosystem.
If you have read this article from the beginning, you will realize where I talked about my experience in cryptocurrency.
Also, read this related article about cryptocurrency Here.