What is Cryptocurrency?



What is Cryptocurrency?

In this Article we can talking about Cryptocurrency.

A cryptocurrency is a digital or virtual currency that is secured by cryptography, making it nearly impossible to counterfeit or double spend.

In simple language, “a money system that is recognized by a country and used as a medium of money by the people there”.

Meaning by using this currency we can buy any item or any service.

“Crypto” refers to the various encryption algorithms and cryptographic techniques that protect these entries.


On which technology does Cryptocurrency work?

Cryptocurrency works on Blockchain Technology.

This technology is in such a way that a computer stays online as a file and supports it as a digital wallet.

This whole system which is managed by Decentralized System.

As you know that every country has its own currency like India has rupee and America has dollar, Japan has yen and many countries have their own currency.

Founder of Cryptocurrency

In 1983, American cryptographer David Chaum conceived an anonymous cryptographic electronic currency called eCash.

Later, in 1995, he implemented it through Digicash.

Are cryptocurrencies legal?

Fiat currency derives its authority from the government or monetary authorities as a medium of transaction.

For example, each dollar bill is backstopped by the Federal Reserve.

But cryptocurrencies are not backed by any public or private entities.

Therefore, it has become difficult to make a case for their legal status in various financial jurisdictions of the world.

It is clear that some countries have accepted it and in some countries it is not recognized yet.

Cryptocurrency Advantages
Advantages of Cryptocurrency:

  • Cryptocurrencies represent a new, decentralized paradigm for money.
  • Cryptocurrencies promise to make it easy to transfer funds directly between two parties, without the need for a trusted third party such as a bank or credit card company.
  • Crypto investments can be used to generate profits.

Cryptocurrency Disadvantages
Disadvantages of Cryptocurrency:

  • The big disadvantage of crypto is that it does not control any particular authority and no one can control its prices and its price keeps on increasing and decreasing.
  • Another disadvantage of this is that it is a digital currency, so its black can also be done easily.
  • The biggest disadvantage of cryptocurrency can be easily done in promoting terrorist activities.
  • Illegal Weapons, Drugs Smuggling and Theft Can Be Used to Buy Credit/Debit Cards.

The 5 Most Common Types of Cryptocurrencies:

(01) Bitcoin

The first cryptocurrency was created in 2009 by an individual (or possibly a group) who goes by the pseudonym Satoshi Nakamoto.

Bitcoin, the world’s most expensive crypto, continues to drive its price to record highs.

For the first time its price reached beyond

For the first time its price reached beyond 60 thousand dollars.

(02) Ethereum

Like Bitcoin, Ethereum is a blockchain network, but Ethereum was designed as a programmable blockchain.

Which means it was not built to support a single currency.

(03) Cardano

Cardano envisions itself as a third generation blockchain platform to cast itself as the next level player.

(04) Binance

Binance is one of the largest crypto exchanges in the world, and Binance Coin (BNB) is a crypto token.

Which was created to be used as a medium of exchange on Binance.

(05) Tether

Tether was the first cryptocurrency to be marketed as a “stable coin” – a breed of crypto known as a fiat-collateralized stablecoin.

The value of Tether is pegged to a fiat currency – in this case, the U.S. dollar. Dollar.

The Best Crypto Exchanges of 2022.

Binance.US — Best Overall Crypto Exchange.
Coinbase — Best crypto exchange for beginners.
Binance.US — Best crypto exchange for crypto enthusiasts.
Best of the Rest.

cryptocurrency in india
cryptocurrency market in india

Talking about India, CoinDCX, CoinSwitch, WazirX and Unocoin are the most famous exchanges.

How to Invest in Cryptocurrency?

By downloading any of these apps, you will get their approval after completing the KYC process.

And add Funds to your account and buy your favorite crypto.

Note: At present India does not have any cryptocurrency of its own.

Read Also:

What is NFT?

Leave a Reply

Your email address will not be published. Required fields are marked *