Cryptocurrency is a growing term in when it comes to investment. It is called a virtual or digital currency where transactions are done between end to end operators without the interference of any intermediaries like financial institutions and government. The secrecy of the transaction is lies between both of the operators who send money and who receives money. There are few persons who are aware of cryptocurrency and their functionality. But it is the good way to invest money online if operated very well. The first cryptocurrency was bitcoins. Bitcoins are created by Satoshi Nakamoto in 2008. It is called “Peer-to-Peer cash transfer system”.
Top 3 best performing cryptocurrency
The top 3 best performing cryptocurrencies are as follows:
Let’s understand these three currencies and their performance in future to get the best platform for investment.
What is Bitcoins
Bitcoins, the “peer-to-peer transaction system is the first cryptocurrency and came into effect from 2009. This is the virtual creation of Satoshi Nakamoto. Bitcoins use the term cryptography for the mandate and generation of coins or currency.
Bitcoins is the reward in the process of mining. They can be swapped in any currency or products, and amenities. Since 2015 more than 100,000 vendors accept the bitcoins as an acceptable trade currency. According to the research of the University of Cambridge in 2017, around 2.9 to 5.8 million users using Bitcoin in their cryptocurrency wallet.
How Bitcoins Works?
Bitcoins are totally computer-generated coins or currency planned to be self-operated for their price, without the interference of the banks or financial institutions. Once the operator has the bitcoin, they act like physical gold coins. This is the online money so that operates can buy and sell the product or services online. They are traded from wallet to wallet. A wallet is a small personal database that can be stored on the computers, phones, tablets, and anywhere in the cloud.
Future of Bitcoins:
It is not possible to say anything about the future because it is the completely uncertain term. The normally assumed that the value of Bitcoin will continue to upsurge as more transactions are done by the similar 21 million Bitcoins.
The more that people wish a system of currency to ratify transactions, the more that the currency is value. If operators cannot mine more Bitcoins to meet the growing demand for their possession, then their worth to all goods must increase. Bitcoins are one of the best choices to buy but they levied a high transaction fee. As they are very old cryptocurrency, the reliability to buy is more.
What is Ripple
Ripple is created in 2012 by Chris Larsen and Jed McCaleb. It is the technology that works as both a cryptocurrency and a digital transaction network for currency transfer or transaction. The ripple coins are nicknamed or labeled as XRP. Ripple works as an open source and peer to peer digital transaction system which allows any type of currency.
It the other way to make payments than banks and financial institutions where you need to visit for all financial transfers. It is becoming more famous nowadays. It is the single cryptocurrency which surges in the market whereas other cryptocurrencies are not.
How Ripple works?
Ripple uses Gateway that works as the link between two parties want to make a transaction. Gateway works as the credit midway that accepts and sends currencies to open addresses over the Ripple system. Anyone can register and open a gateway that approves the operator to works as the trader for exchanging currencies, keeping liquidity, and exchanging payments on the network.The XRP works as a mediator currency to other. It does not differentiate between one currency and another, so it makes easy to exchange in any currency.
Future of ripple
Ripple is one of the upsurging currencies that would not be affected by the downfall of the Korean market. It rose by 9.4% when other cryptocurrencies are dropped down. In 2017, it increases from 0.6 cents to $1.70 per coin. It is most famous cryptocurrency today. As it is surging a lot and the Korean market downfall could not affect its market. It is the must-buy currency which could give the best results in future.
What is Ethereum
Ethereum labeled as Ether, is an open source blockchain based digital transaction system. It is created in 2013 by VitalikButerin. Ether implement scripts via a global network of public nodes. It can be transported among accounts and used to recompense participant nodes for calculations performed. After the collapse of DAO project in 2016. It was split into two parts, one is new version there (ETH) and other is old ethereum classic.Each application needs to keep a trail of the ‘state’, or the current data of all of these applications.
How Ethereum (ETH) works?
The working system of etherum is same as bitcoins. Every node on the network collects a copy of transaction history.The nodes of the ethereum store in the current state of each canny contract, in accumulation to all of the ether transactions.
Future of Ethereum
The future of every cryptocurrency is uncertain but we can make estimates with the previous records of transaction histories of them. By going through the growth of the market the data of upsurging of ether is collected. In January 2017 the growth was $8.24 and until August 2017 it has risen up to $203.30 that is around 2367% growth. It is second most valuable currency after bitcoins. As etherenum is new to the market so the risk is high.
Conclusion The market of cryptocurrency is growing amazingly. Bitcoins dominates the crypto market. These virtual transactions are more secure and confidential than the transactions made with banks. These three cryptocurrencies have emerged as one of the top growing currencies. These are digital currencies which will give the high returns but they are market volatile too. The risks are also there because it is all kind of speculation. The market of crypto is volatile. Sometimes you can get a high return and sometimes it could be loss.