Instead of keeping their money in bank accounts, people nowadays have a more innovative way to save it, that is, by investing their money in different avenues. For the creation of more money and to fulfill their financial goals, people are ready to take risks now because it leads to greater rewards. No doubt, there are a variety of options available for investment purposes like mutual funds, shares, real estate, bonds, cryptocurrencies, and many more. However, out of all these, Crypto-currency is the new-age investment option that is gaining much popularity among people. If you are looking for a reputable trading platform, you may visit Qumas AI and start your trading journey.
What is Crypto-Currency?
Just like we use currency to make payments in the market, this is also a currency, but in a digital form. It means that it is not in a physical form like the usual currencies or paper form of currencies that we use. It involves the use of the internet and computer network and acts as a medium of exchange for making transactions.
Some points to keep in mind about Cryptocurrency are-
- Free from Government Control
- Digital Currency
- Powered by computer Network
- Relatively Safe and Secure
- Used Blockchain Technology
- Fast Growing Market
- Private Transactions
- International transactions with no difficulty
- Operates 24/7
- Fast transaction
- Economic
- Anonymity in transactions
Types of cryptocurrencies:
There are many types of Cryptocurrency, each having its features based on the purpose of what the developers have designed them for. Some of the popular ones are mentioned below.
- Bitcoin:
The most popular type of Cryptocurrency all over the world is Bitcoin. Launched in 2009, it is decentralized and uses a peer-to-peer electronic cash version to get transferred. These do not have the involvement of any third party and involve smooth transactions nationally as well as internationally.
- Ethereum:
Known for its native Cryptocurrency, Ether, it is the second most famous digital coin used for securing any digital technology. It deals with creating technologies involving how people will use them in our daily lives and how the industry works. It is, like bitcoin, decentralized and involves blockchain technology.
- USD Coin:
USD Coin is a type of Cryptocurrency that is often known as a ‘Stablecoin,’ linked to the U.S. Dollar, but there is no role of the U.S. Government in issuing these coins. These are often used for maintaining stability in prices and are open- source coins.
- Binance Coin:
Binance Coin , also known as BNB, was created in 2017 and is used for trading purposes. Not only that, one can utilize this coin for investment, fees, entertainment purposes, payments of credit cards, and many more.
- Tether:
In 2014, Tether Limited Company launched the crypto-currency Tether, which has now become the world’s third largest crypto-currency for its market value. This type is quite different from other cryptocurrencies like Bitcoin. Also known as a Real coin, this is a Stable coin linked with the Dollar. The token value is 1 Dollar which is tried to be maintained so that stability is maintained and balanced.
Bitcoin or Ethereum: Where to Invest?
One might get confused when one thinks about investing in different Crypto-Currencies- Bitcoin and Ethereum. To take away the confusion, the following are the points one must go through to know about their difference.
- The purpose of creating Bitcoin was to create an alternative national fund transfer system that has its native currency running digitally only. In contrast, Ethereum is a programmed blockchain, the purpose of which was to facilitate the functioning of digital technology.
- In Ethereum transactions, specific codes that are executable are used for transactions, whereas while transacting through bitcoin, only transactions with information are used.
- Because of its increasing applications in different areas such as financial contacts, technology, arts, etc., Ethereum is growing amazingly. However, in the case of Bitcoin, it depends upon the governments of different countries to adopt it, and there are still many countries that have not shown any interest in doing so.
- As an alternative currency, the Government can put specific regulations on the Bitcoin currency for its smooth and fair functioning in the country. At the same time, Ethereum is a Software Platform that is both open-ended and decentralized and does not involve much of the Government’s involvement.
One can invest both in Bitcoin and Ethereum, one being the first crypto-currency that is, thus, reliable and valuable, while the other, despite having some flaws, is rapidly growing.
Conclusion:
A cryptocurrency is a smart option for investment purposes, but it involves a lot of risk and speculation. Before making any investment, people should research or contact a qualified professional and have updated knowledge about the investment options. Furthermore, one should always have a backup strategy before investing to ensure one does not lose their hard-earned investment. Thus, safe investment helps in making a secure profit.