Cryptocurrencies: A Study of Bitcoin, Altcoins, and Token Systems

This report provides an in-depth analysis of cryptocurrencies, focusing on Bitcoin, Altcoins, and their associated technologies. It explores the fundamental concepts of cryptocurrencies, including the role of blockchain technology, and differentiates between Bitcoin, Altcoins, and tokens. The report examines the advantages and disadvantages of cryptocurrencies, such as transparency, portability, and potential for market fluctuations. It discusses the process of obtaining cryptocurrencies through online marketplaces and highlights the high-risk nature of cryptocurrency investments. The author expresses a personal opinion against investing in cryptocurrencies due to the risk involved. The report concludes with a bibliography of relevant sources.

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Cryptocurrencies
Cryptocurrencies is the tradable digital asset or the money in digital form that is built
on the block chain technology and exists only online. Cryptography is used for verifying and
securing the transactions. In order to handle the money as well as private information of the
people, there is no need for trusting on banks anymore, rather they can secure their
transactions by the help of trading through cryptocurrencies. The block chain helps in
processing the transaction of the cryptocurrencies. Moreover, there are three main types of
the Cryptocurrencies, which are Bitcoin, Altcoins and Tokens. Bitcoin is that digital
currency, which is used for maintaining the transactions record and it is the new currency
units, which operates independent of the central bank. Further, Altcoin is the digital
cryptocurrencies that are alternative and better substitutes of the bitcoin. In addition, Tokens
are completely different from the above-mentioned types and it has does not have its own
block chain rather it depends on the existing block chain. It has always the price, which is
sold for and hence, people buy it. The positive side of cryptocurrencies is that it is
transparent, not traceable, portable, unlikely inflation and control of transaction. However,
the negative side of it is not widely known that leads to mistrust of it, non-recoverable and
subject to market fluctuations. In order to get Cryptocurrencies, the traders of it have to join
online market place or the exchange for trade. Investment in the cryptocurrencies involves
high risk. Hence, in my opinion, I would not be investing in cryptocurrencies because it
involves high risk and it is not for the retail investors who are risk averse.

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Bibliography
Bulut, A., 2018. Cryptocurrencies in the New Economy. Journal of International Trade,
Logistics and Law, 4(2), p.45.
Jackson, P., 2017. Cryptocurrency: The Ultimate Beginner? s Guide to Trading and Investing
in Cryptocurrency for Maximum Profit.