Due to the pandemic, many people lost their livelihoods, employees were getting fired, and traders experienced a decrease in turnover. Investment can be one way for you who are in economic problem to get additional income during this pandemic. There are many investment alternatives such as stocks, gold, bonds, mutual funds, property, business, and collectibles. Besides these alternatives, have you ever heard about cryptocurrency before?
Cryptocurrency is a digital currency used for virtual transaction via online. Differ to conventional currency, digital currency is decentralized in which there’s no intermediary between sender and receiver in a transaction. Cryptocurrency offers you a convenient way to invest whenever and wherever you want by using a computer only. Moreover, it has future potential high prices increases and is completed with blockchain to secure, faster, and facilitate digital payment. If you’re new to this but interested to know more, we’ll briefly explain some terms related to cryptocurrency down below.
The Followings Are Several Popular Terms Related To Cryptocurrency
Bitcoin
Bitcoin is a one kind of cryptocurrency, a digital currency created by Satoshi Nakamoto in 2009. Bitcoin is the most popular digital currency with an exchange rate of up to more than $11.000 per coin. Primarily, Bitcoin is used in transactions on the internet without using any bank services. Also, to provide basic security functions, Bitcoin uses cryptography in which it can only be used by its owner. Nowadays, many people use this currency for various transactions or even for sale as a form of investment.
Ethereum
Ethereum is a decentralized computer network whose basic functions are as a blockchain and virtual machine. As a blockchain, it plays a role to record traces of digital currency transaction. Then, as a virtual machine, it can create smart contacts whose functions are creating ERC20 token and facilitating token transaction. As a result of having functions as a blockchain and virtual machine, Ethereum can support DApps (Decentralized Applications). Just like many other blockchains, Ethereum also has its own cryptocurrency namely Ether (ETH).
ERC20
ERC20 or ERC20 token is a token that is made and used in Ethereum platform only. It is made by Fabian Vogelsteller in 2015 and still popular today although its price isn’t as expensive as Bitcoin. Just like other cryptocurrency, ERC20 can be shared, exchanged for other tokens, or transferred into a crypto wallet. ERC20 provides a standard for naming functions and parameters that interface applications can call. It makes developers need to develop one interface only for all ERC20 based tokens.
Besides Bitcoin and ERC20, you can also try to invest Stablecoin GOLD which is the latest product of Digital Gold. Just like ERC20 Stablecoin GOLD is also made using Ethereum smart contacts. Stablecoin GOLD is a virtual form of the real gold which equals to 1 gram of gold per 1 coin. As for the advantages of investing this gold token in Digital Gold are guaranteed security and privacy, no transfer fees. Moreover, it offers low service fees and high liquidity.
Those are several terms related to cryptocurrency that you may not have known before. It is true that cryptocurrency can be a new way that is more convenient and profitable than other investment alternatives. However, what you should keep in mind is no matter how good something, it surely still has flaws. Thus, if you want to start to invest using cryptocurrency, you better learn it well beforehands. Do not forget to learn investment principles as well so that you can succeed in investing.