Ancient humans used the barter system as a means of exchange of goods or services. After many years, people began to use shekels made from gold or silver. Then came the paper money, which was easy to carry around. After a while, credit cards were introduced, making payments even more effortless and protecting the cardholders and the people who received payment. All of these show the many changes the concept of money has recorded over the years.
Today, we have cryptocurrency – usually referred to as digital money, which allows people to store, exchange, and trade them digitally. The cryptocurrency market allows for a universal means of trading and investing. You no longer have to change your currency to a particular type before sending money to someone from another country.
You can buy Dogecoin, Bitcoin, or any other cryptocurrency, and you can send money anywhere in the world.
What Exactly Is Cryptocurrency and What Makes It Unique?
Cryptocurrency is more than digital money; it is an innovation that further strengthens the digital world we live in. Most importantly, it is a system of global value. Many people worldwide are buying cryptocurrency because of its high prospects. They are buying because it is a more valuable way to store money and invest. Buying cryptocurrency and storing it is synonymous with keeping your money in the bank, except that your money invested in crypto yields more profits than it would in a conventional bank.
When buying a cryptocurrency like Bitcoin or Dogecoin, you believe that its value will increase in the future. However, the difference between cryptocurrency and a company’s stock is that any company does not control cryptocurrency, and the volatility is high. This means that there is no way to calculate if the value will rise or fall. The value of a cryptocurrency is determined by the different activities of investors and traders in the market.
How Does Cryptocurrency Work With The Blockchain?
If cryptocurrency is not controlled or regulated by any company, how is it working? It works on a technology called the blockchain, which offers a secure and transparent ledger system. The blockchain is an extensive network of computers acting as a ledger for any transaction on it.
The first cryptocurrency was created by Satoshi Nakamoto in 2009, even though the white paper was released in 2008. However, the name Satoshi Nakamoto is only a pseudonym, and no one knows if it was a man, a woman, or a group of people. The cryptocurrency was designed to work on blockchain – a decentralized system which means that no single computer has autonomy in the system. All the computers work together to approve, authenticate, and record transactions.
This technology was first tested in 2009 after Bitcoin was created. Now, the blockchain provides a safe system to make transactions or invest in cryptocurrency from anywhere in the world. The blockchain is more like the banks that we have today, only that it presents more advantages.
With blockchain technology, people have more control over their money, and they can approve transactions themselves. The blockchain provides more security over private information and can be used to brew trust between parties. These advantages are the reasons why a lot of people are going into the cryptocurrency market today.
The level of trust, efficiency, and transparency the blockchain offers the cryptocurrency world continues to attract investors. Interestingly, people currently who invest in cryptocurrency believe that blockchain will attract more investors to the cryptocurrency market in the future.
What Are Notable Things Cryptocurrencies Can Be Used For?
Cryptocurrency, like the name suggests, is a means of payment for goods and services. However, people in the cryptocurrency market buy Dogecoin and other currencies for investment purposes. Even though several platforms, especially e-commerce platforms, accept it as a valid means of payment, it is not as widely accepted as hard currencies in local retail shops.
How Many Cryptocurrencies Are Available In the Market?
According to data from CoinMarketCap, there are over 13,000 cryptocurrencies in the market as of October 2021. Some of these currencies include Dogecoin, Ethereum, Binance Coin, Bitcoin, and USDT. While this seems to be a lot of coins, the number is likely to double in the coming years.
People are buying cryptocurrency every day, and there is no reason you shouldn’t hop on the train. However, before you buy Dogecoin or any other crypto asset, research to ensure it has the potential to rise.
Bitcoin, Dogecoin, Ripple, there are so many cryptos that you can invest in today. You can start at any level based on how much money you have. The most important thing is to be consistent with your study of the market as much as you are with your investment. Find a reliable crypto exchange platform and start to stock your crypto wallet.