Cryptocurrencies have been a popular frenzy in the last decade with drastic booms and depressions in the market rates. Cryptocurrencies came into existence in 2009 by a developer by who goes by the pseudonym of Satoshi Nakamoto, who created Bitcoin. Although American cryptographers had been working on electronic money since the early 1980s, yet Bitcoin was seen as a significant breakthrough in the world of digital currency. It is impossible to visualise Bitcoin or any other cryptocurrency in a tangible sense as they only exist in the digital realm.
The whole idea of cryptocurrency is based on the feature of encryption, which helps move this digital currency safely and securely around multiple platforms. There is no central authority which regulates the mining and storage of these coins; it is governed by a consensus of existing users who decide if the market needs new coins or if the currency in regulation is sufficient or not. Being intangible and relatively technical, cryptocurrency has attracted the youth and the educated, but the majority of the population is still deprived of the world of digital currency. For them printed legal tender or using online banking once in a blue moon is the only advance transaction they are away of. Let us look at a few cryptocurrencies which can prove to be great investments in the future.
Ripple gained popularity as a digital currency which helped banks to engage in cross-border settlement of funds with high levels of transparency in real-time scenarios. It was launched in 2012 and is one of the pre-mined cryptocurrencies which means that all of the ripple coins were developed before its launch and had been regulating in the market, this can be seen as the defining feature of Ripple (XRP), differentiating it from other coins. Ripple is ranked at the third position right after bitcoin and ether with a market cap of more than 9 billion US dollars.
Litecoin (LTC) came into light after its release in 2011 due to its structure and function being remarkably similar to Bitcoin itself. It was created by Charlie Lee as opensource software, under a licence provided by the Massachusetts Institute of Technology. Although being a spin-off of the original Bitcoin, Litecoin improved on processing speed and block structure, and it incorporated the password-based key mechanism, commonly known as script and included the PoW system (Proof of Work) which is a consensus mechanism and provides safety from fraud and cybercrime. Litecoin is a relatively new currency as compared to its competitors, Ether and Bitcoin, but is slowly moving up the scale. In the first month of 2020, Litecoin (LTC) reached a market cap of 3 billion US dollars.