With the invention of digital currency, risen to life are a number of digital currencies. In this post, I will take you through the different digital currencies available and what digital currency means. Fasten your seatbelt; it’s going to be a quick one.
Before we proceed with anything today, let us first understand these terms. What is Digital currency? Well, Digital currency, also known as digital money, electronic money, or electronic currency is simply any currency that is primarily managed, stored, or exchanged on digital computer systems over the internet. The definition gives us an overview that both Cryptocurrency and StableCoins follow under Digital currency.
The most common digital currency today is the cryptocurrency Bitcoin. Digital money is exchanged using technologies such as smartphones, credit cards, and online cryptocurrency exchanges, then, they can be represented in fiat currencies, such as dollars or euros.
Two Types of digital currency
- Virtual Currency
List of main digital currencies?
- Ethereum (ETH) …
- Litecoin (LTC) …
- Cardano (ADA) …
- Polkadot (DOT) …
- Bitcoin Cash (BCH) …
- Stellar (XLM) …
- Dogecoin (DOGE) …
- Binance Coin (BNB)
Cryptocurrency is a digital payment system. The good thing about it is that it doesn’t depend on banks to verify transactions. Cryptocurrency is a P2P system and allows anyone in the world to send and receive payments.
Just like the overall definition of digital currencies, cryptocurrencies operate on software networks. Computers running the Cryptocurrency program just run the program on their end but have no control over the whole network of digital currencies.
Cryptocurrency is one of the most secure digital forms of cash that is stored in cyber wallets. However, Hackers and cracks may find a way of stealing this wallet just like they would have done to any bank around the world. This brings us back to the phrase, “No one is safe on the internet because the internet is not safe”
Purpose of Cryptocurrency
The reason for Cryptocurrency was to fix the problems of traditional currencies by putting the power and responsibility in the currency holders’ hands. It doesn’t matter; you can always convert your Cryptocurrency to cash whenever you want. This is usually done through Cryptocurrency exchanges.
Another type of digital coin we can talk about is the StableCoins. It is a type of digital currency whose value is tied to an external reference that is viewed as stable. You may get stablecoins from another user after an exchange for a currency such as U.S. dollars at a P2P exchange rate.
Below is a list of the Top Stablecoins
- Tether Stablecoin: USDT.
- Binance Stablecoin: BUSD.
- Gemini Stablecoin: GUSD.
- Coinbase Stablecoin: USDC.
You may be asking yourself whether StableCoins is a good investment for you. Research shows that
Stablecoins is another safe and long-term source of investment one can make in this generation.
The main purpose of the StableCoins is to provide stability regardless of their sizes and forms. This is one way of providing stability in the cryptocurrency market.