Cryptocurrency
In the past there was no currency to buy or sell goods. Another product was available in exchange for one product. But then came currency which could be paper notes or metal coins. And there is another currency which is completely digital that is crypto currency. Cryptocurrencies are the concern on everyone’s mind that what is cryptocurrency? ,How does cryptocurrency work? Advantages and disadvantages of cryptocurrency? Is cryptocurrency legal? Read the entire post carefully to know complete information about crypto market –
What is cryptocurrency?
Cryptocurrency is a private digital currency. Cryptocurrency is a new way of transaction. It can be said that cryptocurrency is a type of digital currency of cash. The word Crypto means secret and the word Currency means money in exchange for various products. Cryptocurrency means hidden money. Cryptocurrency is an encrypted currency where transactions are completely secret and no third party has hands on it. And the most important thing is that the government is not in control.
History of Cryptocurrencies
Cryptocurrencies are online currencies that you cannot touch with your hands but with which you can transact online.
This cryptocurrency or secret currency was launched in 1983. Cryptocurrency was pioneered by an American occult writer named David Chaum. What we know as cryptocurrency was named Cash by David Chaum. David Choum worked on this invisible cryptocurrency until 1995. David Choum tried to do something new at that time.
Satoshi Nakamoto gave birth to David Chaum’s new effort. Who made this currency very successful and he invented Bitcoin. From that time cryptocurrency started to be popularized and popularity of cryptocurrency increased day by day.
Cryptocurrency value
There is no literal number printed like cryptocurrency notes or coins but cryptocurrency has a fixed price or value. As it is online in the form of digits, it is called digital money or virtual money or electronic money. You can buy and sell goods through cryptocurrency but you can’t carry it around in a bank or locker or in your pocket.
Cryptocurrencies have a value that is several thousand times higher than the value of other currencies. The value of cryptocurrency is several thousand times more than the dollar. But the value of crypto currency does not change. Its value is always rising. As a result, the value of cryptocurrency can vary in a day.
How Cryptocurrencies Work
Cryptocurrency works through blockchain. The blockchain system started in 1980. The word chain means chain. In simple terms, blockchain is a chain of connected states of many blocks. When transactions are made in cryptocurrencies, all transaction information is recorded i.e. transaction information is kept securely in a block. Blocks are secured by miners monitored by a powerful computer called computer mining. Those who do computer mining are called miners. Cryptocurrencies work through cryptographic techniques such as hash functions and digital signatures.
What is the function of cryptocurrency?
Let’s see what you can do with crypto coins if you have them –
- You can buy goods with crypto currency.
- You can transact online with crypto currency but in that case you must get legal permission.
- You can exchange crypto currency within and outside the country.
Advantages of Cryptocurrencies
The use of cryptocurrencies is increasing these days. Before using cryptocurrency let’s know the advantages of cryptocurrency –
- The kind of notes that we use like 2000 rupees note, 500 rupees note, there is a possibility of getting lost note or torn note but cryptocurrency is a digital currency in this case there is no possibility of counterfeiting or tampering.
- If you suddenly want to send money to someone far away quickly, cryptocurrency is one of the mediums. Because cryptocurrency is digital currency, digital currency does not take much time to move from one place to another.
- Since there is no central institution for cryptocurrencies, there are no specific terms or guidelines for cryptocurrencies.
- In case of money transfer some amount is deducted but in case of cryptocurrency no charge is deducted.
- You can convert crypto currencies into cash through ATM Card.
- Cryptocurrencies are not regulated by any government or state.
- Crypto currency is a very good option for investment because its value sometimes goes up a lot.
- Cryptocurrency does not require a bank.
Disadvantages of Cryptocurrencies
Everything has two sides. Cryptocurrencies have their disadvantages as well as their advantages. Let’s go into detail about the disadvantages of cryptocurrencies –
- Cryptocurrencies are not regulated by any government or state. That is, no one has control over cryptocurrency. As a result, the price of crypto currency goes up and down.
- Cryptocurrency is a digital currency, so it has the potential to be hacked.
- Cryptocurrencies have no physical existence.
- Once cryptocurrency is transferred, it is impossible to recover it.
- Use of cryptocurrency is not legal in all countries.
- The use of cryptocurrency is limited.
- Cryptocurrency can be an ideal method of conducting illegal activities.
Some of the popular cryptocurrencies
Currently the most popular cryptocurrencies are –
- Bitcoin
- Ethereum
- Ripple
- Tether
- Litecoin
- Monero
- Cosmos
- Peercoin
- Name Coin
- USD Coin
- Stellar
- Polkadot
- Doge Coin
- Bitcoin Cash
- Binance Coin
- Cardano
- TRON
- Ethereum Classic
Types of Cryptocurrencies
The most popular cryptocurrency is Bitcoin but there are many other cryptocurrencies besides Bitcoin. Some popular top cryptocurrencies are –
Bitcoin
Bitcoin was started in 2009 by Satoshi Nakamoto. Which was the world’s first cryptocurrency. It is the most popular. Currently the most expensive digital currency is Bitcoin whose value is almost skyrocketing.
Ethereum
Ethereum was first launched in 2015. Ethereum is the world’s largest blockchain network. Earlier the price of ethereum was not very high but now one ethereum is worth about 3000 USD.
Doge Coin
Because the coin has a picture of a dog, it is called Dogecoin. It became a meme for everyone because of the image of the dog on it, thus increasing its value with the help of Elon Musk, the owner of the Tesla company.
Light Coin
In 2011, Charlie Lee launched the first Lite Coin. Who also worked as a Google engineer. Litecoin was known for its fastest transactions.
Cardano
Like other cryptocurrencies, Cardano has gained a lot of popularity. A Cardano costs around $69. Its value is increasing gradually.
Binance Coin
One of the most popular cryptocurrencies at present is Binance Coin. These coins can be traded for travel including train airplane book.
Name coin
Name Coin is basically based on Bitcoin. Namecoin’s domain name is the censorship-resistant domain name .bit. over which ICANN has no control.
Ripple
This cryptocurrency was created in 2012 by an American company. It is a cryptocurrency as well as a crypto exchange.
Is cryptocurrency legal in India?
Earlier cryptocurrency was not legal in India but in 2020 the Supreme Court legalized cryptocurrency. Since then investing in cryptocurrency has been recognized as legitimate. The Indian government has made various efforts to legitimize cryptocurrencies.
FAQ : Cryptocurrency
Is cryptocurrency legal in India?
In 2020, the Supreme Court legalized cryptocurrency.
Which is the cryptocurrency of India?
India has no cryptocurrency of its own.
