About Cryptocurrency, Its Unique Features and Attraction For a User To Give Preference Over Conventional Currency
Hello and welcome to this webinar which is enriched with learning facts and concepts about “Cryptocurrency.”
This concept has currently a lot of hype around. You might have heard this word numerous times in news, newspapers, social media platforms, podcasts and so on. People everywhere are talking about this new concept.
Countries like El Salvador have even gone to an extent of declaring Bitcoin as their official currency!! That’s like a giant leap into the Crypto World!! Even the Indians have so far spent a sum of 40 billion in Cryptocurrency. There are many sources and channels on social media giving you recommendations and advice about Cryptocurrency. However, one must learn and understand it himself or herself first before seeking out opinions. And that’s when we come into the picture!!
This webinar is sponsored by InfoTaxSquare.com which creates companies including profits and non-profit organizations across the United States.
We’re the Crypto-Club Panel and in today’s session, we shall discuss the very basic things about Cryptocurrency including how it began, what it is and so on.
My name is Zaina Rafique and my co-presenters are Miss Monazza Aarfa and Mr. Mantri Markayenda Pragayadu who shall be extending their shares of knowledge respectively.
What is Cryptocurrency?
Cryptocurrency is virtual cash or digital assets. It is a type of a currency component which uses digital format files as money. Cryptocurrency is a very good alternative that will help you get rid of all the hassles regarding alterations, frauds, scams and theft of data.
It uses an online ledger to secure online transactions and make them confidential. It's like the science of hiding information. It is also a money investment strategy for future purposes.
Now you must be thinking that since it is digital, why has it not been named “Digital Currency” or “Techno-Currency”. The word “Crypto” highlights a very important feature. It stands for cryptographic system which makes this currency safe and transactions non-accessible to those not involved in it. You might have seen the word ‘encrypted’ in your WhatsApp chats. Well, it simply means that the data is hidden in a secret code using certain technology.
The transactions are entirely encrypted and highly secure, making it almost impossible for a third person to interfere or alter.
Hence, the name itself suggests the commendable quality of cryptocurrency. Cryptocurrency is also quite fast which makes it a really good alternative platform for investments and transactions in the future, with the technology advancing every day.
"Different types of Cryptocurrency"
A cryptocurrency generally falls into 2 categories and they are :
Further, coins are divided into Bitcoin and Altcoins. First and foremost, let us try to understand the difference between Coins and Tokens. Basically, coins are standalone crypto-currencies and they don't require another platform to run. They have their own technology and block chain and can be used for processing payments.
Some examples of coins are : Bitcoin, Litecoin, Ethereum, Ripple. Cardano and stellar. So, Bitcoin has its own block chain , so does ethereum, ripple, etc.
Now, let us try to understand what a Token is :
Tokens are a form of cryptocurrency that are built upon other platforms and exist on that, which means they are built on the existing block chain. So, you all need to note that if we hear that a token is being launched, It means it is launching on top of a platform. It doesn't have its own block chain, like coins and it simply uses a third party technology to operate and develop.
Also, Tokens are suitable for multiple needs.
Some examples of Tokens are - Uniswaps and chain links. Both these Tokens use ethereum block chain. So, in order to operate these tokens need ethereum (which is a coin) to exist and operate.
Okay, Now since we have got an idea what coins and Tokens are, Let us try to understand the different types of Coins. So, Like I said, coins are divided into 2 categories and they are Bitcoin and Altcoins.
Difference between Bitcoin and Altcoins?
Bitcoin is a term which you must have heard numerous times. It is basically a virtual currency that was launched in 2009 and it eliminates the role of middleman. Also, it uses a block chain technology which is highly secured. Altcoins are 2nd types of coins. It simply refers to coins that are an alternative to Bitcoin. These are digital currencies that were launched following the success of Bitcoin. These cryptocurrencies also use block-chain technology and they do have certain similarities with Bitcoin but they distinguish themselves from Bitcoin in rules, functionality, limitations etc.
Some of the examples of altcoins are : Litecoin, Dogecoin, and cardano.
You need to understand that all these cryptocurrencies whether it's Bitcoin, dogecoin or ethereum and ripple. all of them have different values and the values are dependent on the markets demand.
Like, bitcoin's price fell after China's crackdown on mining and dogecoin's price doubled after renowned billionaire Elon Musk tweeted about it. So, you should not even get worried when a price of a cryptocurrency falls because it's totally normal. One day it will fall and the other day it will rise. You just need to learn how to invest properly and avoid being the market's next fool. Speculate and invest based on demand and supply.
Frequently Asked QuestionsConclusion
We really hoped that you found this session informative and helpful. This is just a gist of what we learned today.
Who are we? We are the “Crytpo Club Panel”.
This initiative was started for the investors and traders to be aware, informed and know exactly what they are dealing with. We are not advisors but just intend to bring you accurate and simple information. You shall explore Cryptocurrency with us in different ways through many such sessions. We are not the advocates of Cryptocurrency but rather the advocates of Transparency.