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                      Home Business Crypto

                      Everything You Need To Know About Cryptocurrency & How Does It Work?

                      Lal Pratap Singh by Lal Pratap Singh
                      January 6, 2022
                      in Crypto
                      4 min read
                      what is Cryptocurrency and digital Currency
                      Share on FacebookShare on TwitterShare on WhatsAppShare on TelegramShare on RedditShare on Pinterest

                      Contents

                      • What is cryptocurrency?
                      • A-List of Some Well-Known Cryptocurrencies
                      • Bitcoin (BTC) 
                      • Ethereum (ETH)
                      • Litecoin (LTC)
                      • Dogecoin (DOGE)
                      • How Does It Work?
                        • Conclusion

                      Do you know about digital currency? Familiar with the concept of what is cryptocurrency? Since the world is going digitalized, you need to cope up with the digital currency system. Before utilizing such kinds of digital currencies and payment systems, you need to learn about the basement of digital currency systems. 

                      If you want to know about the digital currency system, you need to understand the concept of cryptocurrency and Blockchain technology. The entire digital currency system mainly works on the Blockchain network and it is considered as cryptocurrency. In this article, you will learn about what is cryptocurrency, examples of some well-known cryptocurrencies, and how does it works. So, let’s start.

                      What is cryptocurrency?

                      Cryptocurrency is mainly a digital currency system and payment method that works on a decentralized Blockchain network. It can circulate without any central monetary authority such as Government, or Bank. According to the concept of Blockchain technology and cryptographic technique, these cryptocurrencies are created. It is also known as “Crypto”. 

                      Moreover, it can allow the users to exchange such kinds of cryptos with their required goods and services. Thus, this digital currency system provides the opportunity to conduct any buy, sell, or exchange activities via cryptocurrency on a decentralized Blockchain network. So, cryptocurrencies can allow the users to conduct a smooth transaction process on a decentralized network through Blockchain technology. Curious to get free cryptocurrency???     

                      A-List of Some Well-Known Cryptocurrencies

                      There are various cryptocurrencies that have already existed in the crypto world. According to the analysis of December 2021, more than 8,000 cryptocurrencies are exits and this number is never limited, rather it is growing. Here, I would like to discuss some popular cryptocurrencies that can play a significant role in the crypto world. For example, Bitcoin, Ethereum, Litecoin, Dogecoin, Binance Coin, and so on.    

                      Bitcoin (BTC) 

                      Bitcoin is one of the popular cryptocurrencies all over the crypto world. Excited to know how to earn Bitcoin? You can earn Bitcoin through the mining process. You just need to follow some guidelines to complete the mining process and get free Bitcoin into your wallet.  

                      Ethereum (ETH)

                      Another exclusive cryptocurrency is Ethereum and there are lots of tokens and coins are included in the Ethereum Blockchain network. According to the analysis of September 2021, there are 117.5 million ETH are already existed such as ERC20 tokens, Basic Attention Token (BAT), Bancor (BNT), and so on.   

                      Litecoin (LTC)

                      After inventing Bitcoin, Litecoin was the first cryptocurrency that followed the rules and regulations of Bitcoin. Litecoin helps to create a global payment network system on a decentralized Blockchain network. So, you can easily conduct the overall trading activities via Litecoin on a Blockchain network.  

                      Dogecoin (DOGE)

                      Dogecoin is one of the popular cryptocurrencies and it was created as a “Joke” for making fun of. This cryptocurrency can be able to create a payment system and you can easily earn this interesting crypto through the Dogecoin mining process.

                      Most significantly, you can launch your own coins that will establish as a well-known and profitable cryptocurrency after a certain time. In this regard, you must have to know the step-by-step process of how to launch an ICO.

                      Surprised to hear about ICO??? It’s very obvious if you want to launch any new coin or token, you need to know about the concept of Initial Coin Offering (ICO).  

                      How Does It Work?

                      Hopefully, you have understood the overall concept and definition of cryptocurrency. Now, I will discuss how does it work on the decentralized Blockchain network. 

                      • All of the cryptocurrencies run on a decentralized Blockchain network and keep a record of all of the transactions. 
                      • When the overall process is conducted, a little amount of cryptocurrency is created which is called mining. By solving mathematical puzzles, the miners can earn a few amounts of cryptocurrency through crypto mining. 
                      • Also, the traders or users can buy any cryptocurrency from any cryptocurrency trading marketplace. 
                      • After completing the buying or trading process, you can hold such kind of cryptocurrency in any crypto wallet. There are various cryptocurrency wallets available and you can choose any of them according to your convenience.  

                      Conclusion

                      You have arrived at the closing part of this article. Now, you can easily understand the basic concept of cryptocurrency and some popular cryptocurrencies in the crypto market, as well as, its working principle. Also, this article helps you observe the working process of cryptocurrency as well.

                      Also Read: CoinFlip: Making Cryptocurrency Exchange Easier And More Efficient

                      Tags: CryptocurrenciesCryptocurrency NewsDogecoinEthereumHow Does Digit Currencies WorkLitecoinWhat Is Cryptocurrency
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                      Lal Pratap Singh

                      Lal Pratap Singh

                      I am an accomplished coder and programmer, Quality Engineer and I enjoy using my skills to contribute to the exciting technological advances that happen every day at Multi-National Tech. Organization. I am pouring my experience into writing Technical blogging. I graduated from the Vellore Institute of Technology in 2012 with a Bachelor's Degree.

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