The digital currency known as crypto currencies are the currency based on cryptography. Cryptocurrency has become the most innovative concept in finance that allows people to exchange money instantly. It is a technology which allows instant transactions and it makes business transactions cheaper. In a world where there is high inflation, global financial instability, and low liquidity virtual currencies are the perfect solution.
There are different systems of handling money such as credit cards, checks, debits, and banks.
All these systems are created for a specific purpose, which means they offer features to suit those who are employed. For example, a bank account will allow a customer to handle their finances easily and an account card will allow the client to make transactions within their budget.
In case of physical money, the bank will provide all sorts of services such as checking and savings accounts. There are a monthly transaction fee and interest charged on it. This is to ensure that the customers are earning interest and not spending money and paying them interest.
However, there is a new solution, which is a digital currency and this is the currency designed to have a real purpose and not serve for profit. These cryptocurrencies have proved to be a viable option for many individuals because they can reduce the transaction costs without changing the nature of the business.
There are many different types of cryptocurrencies and they are the ones that have the highest market cap. Below are some of the types of cryptocurrencies.
BTC – Bitcoin is the most popular cryptocurrency and it was created by a group of venture capital investors who wished to create a mechanism that would increase the liquidity of the digital currency. The technical network structure and its size also facilitated the implementation of Bitcoin.
ETH – Ethereum is another popular cryptocurrency.
The advantages of Ethereum are that the price of Ether is influenced by the activities of othercryptocurrencies, which increases its liquidity and market cap.
LTC – Litecoin is the simplest of the cryptocurrencies and it is the one that use a proof-of-work system. As it uses a proof-of-work system, it has low transaction fees and it has an excellent reputation for usability.
XRP – Ripple is another cryptocurrency and it is a cross between Bitcoin and the Litecoin. It is also an effective method of exchanging money.
Namecoin – This is another popular crypto currencies and it is a currency based on DNS. It is an ideal type of cryptocurrency for internet businesses.
NMC – NCR is another of the cryptocurrencies that has a good market cap.
- It also has low transaction fees and it is open to all types of users and has a proven record of usability.
- It is very important to understand the currency you are planning to invest your money in before you actually buy the virtual currency.
- In most cases, a good source of information about the virtual currency is online.