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Last updated on April 7, 2021
The world evolves at breakneck speed, and the banking industry is no different. One of the biggest revolutions of banking is the invention of cryptocurrency, which is gaining traction every day. Finances evolve with our technological world, and cryptocurrency is a futuristic way of saving and utilizing money online and via technology rather than physical cards or cash.
In This Post:
What Is Cryptocurrency?
What exactly is cryptocurrency? In simple terms, it is a digitalized form of currency that typically exists separately from banks. It is encrypted with special coding to monitor the transfers and accumulation of funds. It is a method to gather personal wealth outside of banking institutions, though many cryptocurrency companies work in tandem with banks to fit the needs of every individual. It is a brand-new method of saving and spending money in a time where everything is already digital.
Are They All the Same?
Actually, no. There are numerous cryptocurrency companies now, though Bitcoin may be the best known. Every company functions a little differently, and some even have their own form of cryptocurrency separate from the other companies. However, their overall goals are the same: to help you save and transfer funds digitally in the safest way possible.
The best-known cryptocurrency provider, Bitcoin, is the most straightforward and simple method. Their cryptocurrency behaves similarly to what we would expect from “normal” currency, except everything is digitalized and encrypted for maximum security. Bitcoin has garnered a lot of power and influence recently, as more and more investors flock to their company.
There are other cryptocurrency providers, though, typically referred to as “altcoins”. Some of these may have less encryptions than Bitcoins, and as such do not function in quite the same ways. There are companies like Ethereum and Ripple, each with different models and types of currencies for their clients. However, again, the overall goal is the same: to help customers save and invest.
Which One Should You Choose?
Herein lies the tricky part. The various types of cryptocurrencies and methods of investment depend entirely upon what it is you wish to save for or invest in. Bitcoin is by and large the biggest cryptocurrency provider, and if you are looking for something along the lines of what is familiar, Bitcoin may be the way to go. They can help you purchase and save cryptocurrency and walk you through the value and fluctuations of the cryptocurrency industry.
If you are more into the business aspects of cryptocurrency investments, perhaps you should look at Ethereum. It is a company dedicated to the development of “blockchain” applications with its own type of currency, called “ether”. Cryptocurrency is typically a “blockchain” type of application, which is why the company assists in the creation and regulation of cryptocurrency companies alongside their own.
Ripple is a more “bank friendly” kind of cryptocurrency, with a special focus on business to business transactions. It can, of course, be used for person to person transactions, but its design is to send large amounts of money across the globe in seconds. Ripple has seen its rise and fall and risen once more, and it is one of the most business-friendly cryptocurrency models.
How Do I Begin?
Research first! Find out about the different types of cryptocurrencies, from Bitcoin to Ripple and everything in between, and decide what is the best option for you or your business. Bitcoin’s popularity and soaring prices have made it much easier to find information on them, but many fear the price tag that seems to be associated with Bitcoin. However, it isn’t unattainable – just make sure you do your research.
Ethereum is a bit trickier, as it is focused more on investments and growing a business. It is easy for businesses and individuals alike to get started with Ripple. In fact there are companies out there dedicated to the task – for instance, Crypto Head can show you how to buy Ripple. It’s all about research and knowing what you need.
Cryptocurrency is the way of the future, so jump into the digital currency world now!