Cryptocurrency
Use was derived from cryptography, a method of protecting information with codes so only
those for whom the information is intended can read it.
Cryptocurrency is a form of digital currency. Which doesn’t have any physical form; It however
facilitate payment of goods and services using complex codes that only exist in digital
algorithms. There are about 7000 cryptocurrencies being traded as of 2023.
Top cryptocurrencies to invest in
1.Bitcoin
Bitcoin is the first cryptocurrency and has the largest market share of cryptocurrency. It was first
released in 2008 and the first trading happened in 2009 after the writing of the white paper by
Satoshi Nakamoto. Its mining process consumes a lot of energy and is expensive. The total
number of Bitcoins that can be mined are only 20 million there are already 18million Bitcoins in
circulation.
2. Ethereum
Ethereum is the technology used to drive Ether, launched in 2015.
Ether uses smart contracts and distributed applications. This is a unique blockchain software that
is built on the blockchain blueprint used for bitcoin.
3.Stablecoins
Is a cryptocurrency whose value is tied to another currency; commodity was done to deal with
fluctuations associated with crypto. Divided into: Fiat collateralized- stablecoins, crypto
collateralized- stablecoins, Algorithmic stablecoin.
Altcoins
-These are a group of coin whose number is growing each day that use the same blockchain
technology as bitcoin while trying to solve the shortcomings of Bitcoin.
Understanding blockchain technology
Blockchain is a distributed peer to peer network which makes use of cryptography to securely
host applications and transfer digital instruments of value. It combines:
Peer to peer networking: Computers communicate without central authority.
Asymmetric cryptography
Cryptographic hashing
How to buy and store cryptocurrencies
1. Download a cryptocurrency exchange app.
