Rates, Forecasts, Chart, Rating of Cryptocurrencies

What Is Сryptocurrency

Cryptocurrency is a type of electronic money in the form of a mathematical code that uses cryptography to ensure the security of payments.

In 2011, Forbes magazine published an article detailing the workings of the new digital money, marking the first discussion about cryptocurrency. Since then, the term has gained widespread popularity.

What Аdvantages Do Сryptocurrencies Have Over Paper Money?

1. Decentralization. No bank or government controls the issuance of cryptocurrencies.
2. Application of blockchain. An open electronic register records all transactions, ensuring full transparency and security of financial dealings.
3. Cryptographic protection.The sophisticated algorithms and structure of the blockchain make it impossible to forge transactions and fraud.

Cryptocurrency does not have a physical form like banknotes or coins. It exists solely in digital form, lacks control by government authorities, and essentially belongs to no one. Unlike fiat money, its value is not backed by physical assets such as gold reserves, precious metals, or government bonds.

How Can You Obtain Cryptocurrency?

In practice, there are several ways to issue cryptocurrency:

• ICO.Initial Coin Offering is a way to raise investment by issuing tokens.
• Mining.Using PC power to solve mathematical problems and generate new coins.
• Staking.Cryptocurrency holders "lock" their coins in a wallet to participate in confirming transactions and creating new blocks. In return, they receive new coins.
• Forging.Creating new blocks in cryptocurrencies using the Proof-of-Stake (PoS) algorithm. Unlike mining, it does not require solving complex mathematical problems. The right to create a new block in the network goes to the forger with the most significant amount of coins in their wallet.

What Аre the Similarities and Differences Between Cryptocurrencies and Electronic Money?

Cryptocurrency transactions share many similarities with electronic cashless payments. Both types of payments occur digitally without the use of physical forms. Both payments are relatively fast, especially when compared to traditional bank transfers. Additionally, you can pay remotely using the Internet and mobile devices.

However, despite their many similarities, differences exist. Cryptocurrency transactions are decentralized and not controlled by authorities, while regular electronic payments are centralized and controlled by payment systems. Cryptocurrency transactions are fully transparent (except for some anonymous coins). In contrast, data on electronic payments is encrypted and accessible only through official requests from regulatory bodies.

Another critical difference is the reversibility of payments. Cryptocurrency transactions are generally irreversible, while a payment system or bank can cancel electronic cashless payments. Cryptocurrency transfer fees depend on network load, while costs in electronic payment systems are fixed and known in advance.

There is also a technological difference. Cryptocurrency transactions rely on blockchain technology, while electronic payments use payment gateways and banking systems.

What Is Fiat Money?

By the way, where does the strange name "fiat money" come from? Why "fiat"? It's unlikely that the Italian car manufacturer FIAT from Turin had anything to do with it. "fiat money" originates from the Latin word fiat, which translates to "So be it."

In ancient times, rulers set the value of money through decrees. Such an approach allowed them to regulate the economy not through gold and other precious metals but by using monetary policy.

Thus, "fiat money" emphasizes that its value relies not on physical backing but on the issuer's authority and public trust in the government. But let's return to cryptocurrency.

Reasons for the High Popularity of Cryptocurrencies

Several factors explain why cryptocurrencies have become so popular. The main reason is that digital money has become a universal means of payment, not tied to financial institutions or countries. It has gained particular importance in the age of information technology and the freedom of global movement.For example, you only need your counterparty's wallet number to conduct financial transactions with cryptocurrency. A unique cryptographic code secures your payments.

Cryptocurrency Rankings

Bitcoin became the first digital currency in 2008. Today, there are several thousand cryptocurrencies, each with its characteristics. However, almost half of them lack real backing—these projects can be called "bubbles," and we will not consider them in this article.

In total, there are 6 most popular electronic money today. Let's look at the best cryptocurrencies .

1. As of the time of writing, the most popular cryptocurrencies were:

2. Bitcoin (BTC)is the first cryptocurrency in the world. Its creator, Satoshi Nakamoto, is believed by some to be a pseudonym for a group of developers. The total supply of Bitcoin is capped at 21 million coins, although the market has not yet reached this limit.
3. Ethereum (ETH).A cryptocurrency created under the leadership of Vitalik Buterin, a Russian programmer. It launched in 2015 and quickly secured the second spot in global popularity.
4. Tether (USDT). A digital currency whose value is always "tied" to the US dollar. It appeared in 2014 as a digital dollar or "stablecoin." However, it later emerged that Tether's reserves were only 74% backed by US dollars.
5. Ripple (XRP)is the cryptocurrency of Ripple Labs Inc.'s payment system, created to facilitate inexpensive cross-border transfers.
6. Binance Coin (BNB) is a payment method and technical token for the Binance exchange, launched in 2017. It used to pay fees and participate in token sales.

Other popular cryptocurrencies include EOS, Solana, Neo, TRON, IOTA, and Cardano. However, Bitcoin has remained the most popular among them. Its name breaks down as follows: "bit" refers to the smallest unit of information. At the same time, "coin" is translated from English as "monetary unit." Bitcoin has a program and digital wallet designed for storage.

Cryptocurrencies have gained such popularity that special ATMs allow users to withdraw bitcoins as fiat money. Some stores and retail chains already accept payments in bitcoins alongside traditional currencies. Moreover, freelance platforms have emerged where clients pay for services using cryptocurrency.

The cryptocurrency rankings help track the most in-demand digital assets.

Cryptocurrency exchange rates change online every minute.

Advantages and Disadvantages of Cryptocurrency

Cryptocurrency differs significantly from traditional money. These differences have both positive and negative aspects.

Let's list the advantages of digital money:

1. No issuing center or body controls the circulation of cryptocurrency. As a result, anyone with sufficient computing power can mine coins (mining). In addition, decentralization makes control over this money impossible – no financial institution or state can restrict or prohibit the issuance of cryptocurrency.
2. Most cryptocurrencies have an issuance limit, eliminating the possibility of over-issuance and reducing inflation risk.
3. Cryptography and blockchain technology prevent anyone from stealing or copying cryptocurrencies.
4. Cryptocurrency transactions are cheaper than conventional money because there are no intermediaries, such as banking organizations, and no transfer commissions.

Of the disadvantages of cryptocurrencies, we note:

1. Forgetting the password to the electronic storage can easily result in losing the coins in the wallet. Yes, there is no control over transactions. Still, at the same time, no one guarantees the safety and security of funds.
2. High volatility - frequent fluctuations in value, both upward and downward - is a characteristic feature of any cryptocurrency.
3. While the government cannot directly control cryptocurrencies, it does have mechanisms to crack down on people who engage in illegal mining or fraudulent transactions with digital assets.
4. Over time, mining becomes less profitable because as the amount of cryptocurrency mined increases, the mathematical problems computers need to solve become more complex.

The above characteristics are inherent in all cryptocurrencies to a greater or lesser extent. At the same time, they have some properties that are characteristic of conventional money:

• Universality
• Exchange and accumulation
• Making money transfers and payments

Demand determines cryptocurrency prices. A few months ago, some were worth mere cents. Still, today, their value has multiplied tens of thousands of times, enriching early investors.

Earnings on Cryptocurrency

Today, there are several ways to earn income from cryptocurrency:

• Investments in digital assets.The user buys coins for a favorite project in the hope that the project or its product will become popular in the medium or long term and that the coins' value will grow.
• Purchase with subsequent resale on an exchange.The user buys cryptocurrency while it is, in his opinion, cheap and resells it when its exchange rate rises significantly.
• Cryptocurrency mining. You will need special equipment or an expensive mining farm to work effectively. It will also require a separate room with a cooling system and an uninterrupted supply of inexpensive electricity.
• Cloud mining. The user invests in a company's computing power and all the necessary mining equipment. However, beware of scammers operating on the principle of a pyramid scheme. If you invest in a cloud service, do it only with a proven company.
• Earnings from bitcoin cranes. These special services give users coins for the most straightforward actions (for example, entering captcha or visiting partner sites). You can increase income from such activities by attracting referrals. Some developers integrate Bitcoin faucets into their games, attracting new users. Of course, you won't earn much - it will take at least a month to accumulate the minimum amount for withdrawal, and you will have to work on several such services.

Conclusion

Cryptocurrency has long become a popular tool for earning, investing, making payments, and transferring funds. Despite lacking a physical form, it has reached mainstream fiat money. At the same time, its ease of use allows some to profit without investing their funds.

The exponential growth of digital assets no longer surprises anyone. Staying informed and regularly analyzing cryptocurrency charts can help you maximize their potential.

Cryptocurrency resembles traditional money but eliminates its key drawbacks – no central issuer or government control exists. Its borderless nature and financial freedom have quickly made it popular worldwide, offering earning opportunities to everyone. All you need to do is analyze the market and choose a cryptocurrency likely to rise in value soon.