Over the past several years, the popularity of cryptocurrencies has grown; as of 2018, there were over 1,600 of them! And the quantity keeps increasing. The need for blockchain developers, who create the underlying technology behind cryptocurrencies like bitcoin, has increased as a result. Blockchain developers’ pay reflects the high regard in which they are held: As per Indeed, a full-stack developer typically earns over $112,000 annually. Even a website just for jobs related to cryptocurrencies exists.
What is cryptocurrency?
The digital payment system known as cryptocurrency, or “crypto,” does away with the necessity for paper money. It is exclusively available digitally, and while most transactions are conducted online, there are some physical purchases that may be made with it. In contrast to fiat currency, which is only issued by the government, a number of businesses offer cryptocurrencies.
How are cryptocurrencies created?
The technique by which cryptocurrency is created is called mining. Cryptocurrency transactions require validation, which is done through mining, which also produces new cryptocurrency. Mining is the process of adding transactions to the blockchain using specialized hardware and software.
Not every coin is produced by mining. Cryptocurrency, for instance, that is not spendable is not mined. Instead, a hard fork is used by engineers to produce the new currency. A blockchain hard fork forms a new chain. While one branch takes the new route, the other stays on the previous one. Generally, cryptocurrency that isn’t mineable is employed for investments rather than purchases.
How to store cryptocurrency
After buying bitcoin, you must store it securely to prevent theft or hacking. Crypto wallets, which are hardware or software platforms that keep your private keys safely online, are typically where cryptocurrencies are kept. You can store directly through the platform with ease thanks to the wallet services offered by certain exchanges. But not every broker or exchange will offer you wallet services by default.
Types of Cryptocurrency
Bitcoin was the first kind of cryptocurrency and is now the most widely used, valued, and well-liked one. Other alternative cryptocurrencies with differing degrees of features and functionality have been developed in addition to Bitcoin. Some are completely new creations, while others are variations of the bitcoin network.
2009 saw the introduction of Bitcoin by a person or group going under the pseudonym “Satoshi Nakamoto.” In March 2021, the total market capitalization of bitcoins was estimated to be $927 billion, with over 18.6 million of them in use.
Altcoins are rival cryptocurrencies that emerged as a result of Bitcoin’s popularity. The following are a few popular altcoins:
- Litecoin
- Peercoin
- Namecoin
- Ethereum
- Cardana