You gave Bitcoin a chance, but it didn’t impress you?
Or maybe, you want to diversify your portfolio but not sure which to choose?
Whatever the reason is, this guide on altcoins is going to help you out.
A cryptocurrency (also referred to as virtual currency) is a medium of exchange like fiat currencies but uses cryptographic techniques to safeguard transactions.
Unlike fiat currencies that are managed by a central authority (like banks and financial institutions), cryptocurrencies are facilitated by a community that works on a peer-to-peer basis. This “decentralized” nature of cryptocurrencies comes from cryptography.
From a user standpoint, a cryptocurrency transaction is a lot like a normal debit card or PayPal transaction. In fact, a new user doesn’t even have to understand the technical details of the system to transact with cryptocurrencies. What happens behind the transaction process is what makes cryptocurrencies so appealing.
So let’s take a look at how it works.
When you initiate an online payment with fiat currencies, the transaction is sent to banks (of the sender and the receiver) which then verify, send and record the money transfer on their respective databases.
This is not the case with cryptocurrencies.
A cryptocurrency transaction is essentially a fund transfer between two cryptocurrency wallets. When you want to transfer funds to someone, you initiate a transaction from your wallet to the recipient’s wallet address. This transaction is then sent to everyone in the blockchain network, where it is verified. Since it’s a decentralized network, all transactions and balances are recorded on the blockchain and available to the public.
The terms “cryptocurrency” and “blockchain” have become popular among many – but are understood by a few. That’s partly because it’s hard to establish a definition of these terms, as they refer to a wide array of technological developments.
In simple terms, you can think of a cryptocurrency as a digital asset and of blockchain technology as the infrastructure that underpins digital transactions.
Although it was a cryptocurrency (Bitcoin) that introduced blockchain technology to the world, blockchain use cases extend beyond the transfer of funds. Blockchain technology is essentially a decentralized public ledger that records data and transactional activities and validates the ownership of the data at any given point in time. This data can be anything from simple contracts to real estate stocks to virtual currencies.
Cryptocurrency uses blockchain technology’s features (immutability, transparency, and verifiability) to secure and authenticate transactions.
Currently, there are well over 5000 cryptocurrencies and this number shows no sign of stopping. These cryptocurrencies can be classified into one of the three categories based on their function: Bitcoin, altcoins and tokens.
It’s important for you to understand the way a review gets done. That’s why I’m going to tell you what happens behind the scenes.
In this section, I’ll walk you through how I analyze cryptocurrencies: the factors I consider to study a coin and the approach I take to compose the reviews.
While analyzing a cryptocurrency, I look beyond the benefits and the downsides. I study the purpose of the currency, its protocols and what value it adds.
To me, crypto is a lifestyle. A mindset. A set of values that gets us closer to a society that is secure, transparent and trustworthy. These values resonate in my work and trickle down in each of the steps below.
Once I publish an article, I ensure that the information and reviews are always up to date. After all, the crypto market is a high-volatile sector.
I’ve been active in the crypto space since 2012, but I also worked at financial institutions like Goldman Sachs and Blackstone. I’ve learned both from the new world and the old world of finance.
As the founder of Top Tier Impact, a global ecosystem of leaders in impact investing and sustainability practices, I see how the advances in technology across all economic sectors are helping our collective transition towards a more sustainable paradigm of living.
If you’re curious, learn more about that and about the book behind Blockchain Mavericks on the Alessa Berg page.
For someone who is new to the crypto world, the journey can be tricky. This is true to most Indian crypto enthusiasts, as there is no official framework for trading cryptocurrencies. That’s why Blockchain Mavericks aims to make crypto knowledge clear and accessible.
There is still uncertainty around the laws and regulations governing cryptocurrency. But the good news is, cryptocurrency trading is currently legal in India.
I intend to address the ambiguities related to the crypto world in all my reviews.
Is cryptocurrency a good investment for you? As with any investment, the answer to this question is not an easy one. And definitely not a direct one as it depends on a variety of factors.
But the short answer is yes. And here are three reasons why I think it is a good investment.
Your money is yours alone.
Indian crypto market prediction.
The goal of Blockchain Mavericks is simple: to provide trust and clarity on what happens in the crypto space.
I strongly believe that cryptocurrency and blockchain technology will play a pivotal role in shaping India’s economy.
The only question is, are you equipped to ride this Pareto wave?