What is cryptocurrency? How cryptocurrency works? this was the same question when I heard about cryptocurrency first time. So here I am going to share everything about cryptocurrency. How did it start? Is it legal or illegal or we should invest in cryptocurrency? Who started cryptocurrency? You will come to know so many things in this post hence keep reading this post till the end.
What is cryptocurrency?
So first of all let me tell you the meaning of cryptocurrency. Here crypto means Secret and currency means a medium of purchasing Goods and services. So cryptocurrency is a kind of private currency or secret currency. I hope you must have understood what is cryptocurrency. Now you must be thinking that who maintains it or can anyone manipulate it or not?
So let me tell you that cryptocurrency is maintained by so many computers in a public ledger. There are so many people who are maintaining cryptocurrency in a public ledger and it is called Peer to peer network. It is maintained by a revolutionary technology that is called Blockchain. The Blockchain word has been made with 2 words Block+Chain, the chain of blocks.
The Central American nation has started cryptocurrency and allows its people to buy goods and services. As per a Google report, Satoshi Nakamoto is the person who created Bitcoin.
How cryptocurrency works?
This blockchain is available on so many computers with complete transparency. If someone trying to cheat or fraud, they can be easily tracked. Whoever manages the public ledge is known as Miners and the process of transaction is called Mining. Doing all such things can not be done on normal computers. It requires a special kind of computer and software.
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We all know that whether it is Indian currency or the US dollar, the government has control of it. Cryptocurrency is a virtual currency and there is no control of any bank or government on it. Cryptocurrency does not follow any banking traditional system. Bitcoin is being accepted as a payment method in so many countries. However, there are some countries like China, Bolivia, Indonesia, Turkey, and Egypt where Bitcoin is banned. But most of the countries that accept Bitcoin like the US, Canada, and Australia.
We invest our income in FD, Mutual funds, Share Market, and Gold. But do you know we can also invest our income in Cryptocurrency? Yes, you can easily make the transaction in a second, even you can use it in an international transaction as well. You do not have to pay any transaction fees, it is completely free. There is no middleman in it and the transactions are secured and private. Do you know the value of 1 Bitcoin in Indian currency was 2.85 Rs and 0.06 USD in 2010? In 2021 1 Bitcoin is equal to 47 Lakh Rupees, you can imagine if you had invested 3 Rupees in 2010 it would have become 47 lahks Rs+ in 2021. This is how cryptocurrency works.
Types of cryptocurrency.
There are so many types of cryptocurrency in the world that are being used as digital payment. I am going to list some of the popular cryptocurrencies below.
1-Bitcoin
2-Ethereum
3-Binance coin
4-XRP (Ripple)
5-Tether
6-Dogecoin
These are the cryptocurrencies that are being used for digital payment all over the world. You must be thinking is it safe to invest in cryptocurrency? Yes, it is safe to invest in cryptocurrencies, and all you can do by just download some apps like CoinDCX, Binance App India, WazirX App, ZebPay App and etc. You can get it easily on the Google Play store and download it for investing in cryptocurrencies.
You guys must be thinking that it is so costly, how we can invest in it? So do not worry, you can purchase Bitcoin for 100 Rs only. You do not need to spend thousand or Lakhs, you can start investing in just 100Rs. This is the reason many people have started their investments in cryptocurrencies. The value of cryptocurrency fluctuates sometimes and the reason behind it is their demand in the market.
I am just giving an example, so suppose you have a piece of land and there are so many people who want to buy that land. Then definitely the price of land would increase but if you have fewer customers to buy that land then the price would decrease. So it is all about the demand for such things in the market. Now you know why cryptocurrency rates fluctuate in the market.
Conclusion.
The world is evolving day by day and we can clearly see it in our daily life. The finance system, technology, medical field, Communication system, transport system, etc. You can relate all these things before and after 20 years and you can see how it has changed human life. Everything is evolving and we are accepting these all things.
Before 20 years back people had no trust in digital payment transactions like on Paytm or other UPI apps. But today we can see that online payment has increased a lot. If you have 50 thousand Rupees in your locker, it may get damaged by insects or nibbled by rats. But if you have the same amount in your bank account then it is safe more than your physical money.
Cryptocurrency is the future and the most important thing is that it does not control by the government. The prices may increase or decrease but they can not be manipulated by the government. People nowadays invest and trade in cryptocurrency and Bitcoin is the most popular Cryptocurrency around the world. Here I am not promoting or saying that you should start investing or trading in Bitcoins or other Cryptocurrencies. Everyone has a different perspective and you are responsible for your decision.
Hence always consult with someone who is experienced in this field. Do your own research and if you are convinced then you can start using or investing in such Cryptocurrency. I hope you must have got so much information about Cryptocurrency and how cryptocurrency works?. If you found it helpful and knowledgeable then you can share it with your friend and colleagues. I wanted to know your opinion about Cryptocurrency hence if you read here then let me know what are your thoughts about Cryptocurrency.