Cryptocurrency, Bitcoins, and terms like “mining crypto” can be pretty perplexing. Nonetheless, it is something integral to understand in today’s digital world. The history of cryptocurrency is quite as fascinating as the concept itself. Crypto is notorious for ransom payments or illegal ways to purchase stuff in order not to get tracked.
Nowadays, cryptocurrency is more in the spotlight. The question that has been on everyone’s mind is, “what is cryptocurrency?” That is why the search engines are booming with searches for things like crypto explained, how to buy cryptocurrency and how to invest in cryptocurrency.
Not to worry, just like the former, we have got your back. Today, we’ll be breaking everything down and letting you know the basics of cryptocurrency. No time for this? and you can always check out this video Cryptocurrency for beginners on Youtube.
Cryptocurrency: What is it?
Crypto or cryptocurrency, are decentralized digital assets. It’s money or digital coins sent using the internet. Its transactions are verified, and the records are maintained, but there is no central authority. Simply, they are online assets that can be traded worldwide.
Cryptocurrency: Categories of crypto
Now that you understand what cryptocurrency is, we can jump on to the types of cryptocurrencies. Majorly cryptocurrencies are divides into three categories:
The main difference between crypto is whether or not they are tokens or cryptocurrencies. Cryptocurrencies have a private blockchain where transactions are registered, tokens can be created on a third party blockchain such as Ethereum or Cardano. Cryptocurrencies are also mined and not created, if you have no idea what cryptocurrency mining is, we advise you to visit fydcoin.com and learn more about crypto mining.
Masternode coins are also decentralized cryptocurrencies, however coins are minted rather than mined in masternode blockchains. If you are interested in Masternodes or masternode investing you can visit fydcoin.com/masternode.
Cryptocurrency staking is another method Proof-of-Stake blockchains utilize to mine new cryptocurrency coins. If you are unfamiliar with cryptocurrency staking you can find a detailed explanation on fydcoin.com/staking.
These are a type of currency that you can trade for services on different sites. These tasks can be anything from gaming and insurance to even business licenses.
Another type of cryptocurrency is known as “payment tokens.” This type is the closest to the actual concept of money that exists today. The usage of payment tokens is to buy from anyone who accepts the cryptocurrency. With payment solutions such as Bitpay, it is no longer required for merchants to accept individual cryptocurrencies. You can think of Visa or Mastercard that are currently using a centralized system to track transactions. With cryptocurrencies these companies will provide payment solutions only.
Another primary type is security tokens; these resemble buying and keeping stocks of companies. However, instead of using them for purchasing purposes, they are stored or, as the name suggests, are used to show ownership.
Last but not least are NFT tokens. In a nutshell NFT’s are tokens that register ownership in a decentralized ledger. Visit FYD wiki if you want to learn more about NFT tokens: fydcoin.com/nft.
Cryptocurrency: Is it worth it?
Cryptocurrency is the future of money, according to some; this is because the transactions made with crypto are maintained and tracked by a decentralized authority, not one country or third party like a bank. This prevents supply manipulation and offers a fair store of value, according to some.
These currencies and their usage have impacted the environment a lot because of the way they work (Bitcoin and Ethereum miners are using more energy than the entire country of Argentina).
How to invest in cryptocurrency
Since crypto is an emerging market, it is also good to do your due diligence before investing in cryptocurrency. Get your information from a variety of sources, and make your own opinion.
One of the concerns regarding cryptocurrency, as stated before, is the impact cryptocurrency mining has on the environment. FYD coin is a cryptocurrency that solves this issue. Proof of stake blockchains such as FYD require far less energy to maintain and secure a blockchain.
Where Bitcoin miners compete with the strength of the computer to decide who wins the blockreward, FYD coin miners (or minters) compete based on the size of their holdings. This method greatly reduces the impact the FYD chain has on the environment. Like Bitcoin, FYD has a finite supply, which means that the supply is limited. There can only ever be 650.000.000 FYD coin. FYD can also be sent from person to person without the need for a third party like a bank.
FYD is a project for and by crypto enthusiasts, if you are a beginner into cryptocurrency, Bitcoin or blockchain and looking for more information. You can always visit FYD for more information about FYD Cryptocurrency.