The most popular cryptocurrencies
Everyone is familiar with bitcoin (BTC), yet it has been 13 years (!) since its birth. Many new cryptocurrencies were born during this time period, strengthening their market position.
Others are still emerging, but not all of them will survive and grow stronger. Each new cryptocurrency distinguishes itself in some way. Currently, Ethereum (ETH) is characterized by a strong rising trend, with its value steadily increasing since its entrance into circulation in 2015.
Initially utilized within the Bitcoin network, Liteon has evolved to the point where it is now quicker than Bitcoin. At the present, other popular cryptocurrencies are Ripple XRP, NEO, and IOTA.
What is cryptocurrency mining?
The term "cryptocurrency mining" should not be interpreted literally. Digging in the traditional sense of the word does not occur. The term is simply a metaphor for the original meaning of the word "digging," which is linked with the extraction of ores, minerals, or other important resources.
Miners, or people who mine bitcoins, use miners (crypto miners). A cryptocurrency excavator is just an extremely efficient piece of computer hardware, a machine with a lot of computational capacity that can tackle challenging cryptographic (hash) jobs.
The task calculation allows for the addition of a new block to the cryptocurrency network on the blockchain. The miner is rewarded with cryptocurrency for adding a new block to the network.
Because a bitcoin digger consumes a large quantity of electricity while operating, mining cryptocurrencies at home is not profitable when electricity rates are high. Today, cryptocurrencies are primarily mined by large-scale organizations that specialize in this.
Invest or not?
The answer to the issue of whether investing in cryptocurrencies is a good idea is: it depends. It all depends on who they want to invest in and what cryptocurrency they want to invest in.
Cryptocurrency technology has undeniably huge development potential, and the market share of transactions based on blockchain technology is increasing. You must have some understanding in order to manage the crypto market effectively.
To invest, it is worthwhile to understand a little bit at first and extensively investigate the issue of crypto and investment. In the case of cryptocurrency, the potential reward is far bigger than, say, typical bank deposits.
There are many other types of cryptocurrencies, but not all of them are reliable, so it is best to start with the strongest and most well-known cryptocurrencies, such as the most popular Bitcoin or Ethereum.
Investing in new cryptocurrencies, on the other hand, is possibly dangerous. Not every new cryptocurrency will be able to withstand the test of time and rise in value. Furthermore, cryptocurrencies that enter the market are typically of little value.
