A Cryptocurrency is a digital currency produced by a public network, rather than any government, that uses cryptography to make sure payments are sent and received safely.
It is a fully decentralized, digital currency that is not issued by central banks, and bank policies do not define their values. Unlike regular currencies, where new money can be introduced according to the money supply as central banks previously set monetary policy. Cryptocurrency prices are based on supply and demand, and anybody can produce digital currencies.
What determines the value of a cryptocurrency?
The technology behind Cryptocurrency plays a crucial role. Decentralized currencies are resistant to be tracked or controlled, and more, it is nearly impossible just to shut them down.
Bitcoin is usually described as a virtual, decentralized, and anonymous currency that is not government-tracked or tracked by any other legal entity.
Ethereum is a decentralized platform that runs so-called “smart contracts”. Smart contracts are “self-executing” contracts or applications that run exactly as programmed.
Ripple is an open-source, peer to peer decentralized digital payment platform that allows for near instantaneous transfers of currency regardless of their form.
Bitcoin Cash (BCH) is a decentralized peer to peer digital cash. It is based on Bitcoin’s original algorithm, yet with some changes to its underlying code.
Litecoin is an open-source, decentralized P2P Cryptocurrency. It was launched in October 2011 and is based on Bitcoin’s original algorithm. Litecoin is often described as the ‘silver’ to Bitcoin’s gold.
Stellar is an open-source, distributed payments infrastructure. Its goal is to connect people to low-cost financial services to fight poverty and develop individual potential.
Cardano is designed and being further developed as a platform on top of which smart contracts and decentralized applications can be run.
IOTA is an open-source eco-system where people and machines can transfer value and/or data without any transaction fees, without permission, and decentralized environment.
NEO is an open-source Blockchain platform on top of which smart contracts and decentralized applications can be run. NEO sometimes referred to as the “Chinese Ethereum”.
Monero, with a focus on private and censorship-resistant transactions, has been specifically developed to allow its users to execute transactions in full anonymity.