What is Cryptocurrency

What is Cryptocurrency

 The system from which the term "cryptocurrency" is derived is based on encryption techniques. Which is used to secure the network. If we look at the history of cryptocurrency, it started in 1983, American cryptographer David Chaum conceived an unknown cryptographic electronic money called Ex. Later in 1995, he implemented it through Digicash. An early form of cryptographic electronic payments What is Cryptocurrency

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                                                     What is Cryptocurrency

What is Cryptocurrency: cryptocurrency is a digital or virtual currency that is cryptographically secured, which makes counterfeiting or double spending almost impossible. Many cryptocurrencies are decentralized networks that develop systems that are based on blockchain technology – a distributed ledger implemented by a disparate network of computers. A defining characteristic of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.

The countries of the world have different thinking about cryptocurrency, some countries give it legal recognition and these countries have explicitly allowed their use and trade. Some countries have banned it. According to the Library of Congress, a "complete ban" on trading or using cryptocurrencies applies in eight countries: Algeria, Bolivia, Egypt, Iraq, Morocco, Nepal, Pakistan and the United Arab Emirates. Another 15 countries apply "implied sanctions", including Bahrain, Bangladesh, China, Colombia, the Dominican Republic, Indonesia, Iran, Kuwait, Lesotho, Lithuania, Macau, Oman, Qatar, Saudi Arabia and Taiwan.

Indian cryptocurrency

In the year 2018 the Central Bank of India also banned trading on cryptocurrencies, and in the year 2019 a draft was prepared to completely ban the cryptocurrency in India. But in March 2020, the Supreme Court of India completely lifted the ban on cryptocurrency.

Indian digital currency

completely different from crypto

In simple words, CBCD, RBI's digital currency, can be used commonly as our rupee. You can say that money will now be in digital form. The Reserve Bank will issue this digital currency CBCD. That is, the RBI will have control over its transactions. Apart from the changes in the RBI Act regarding cryptocurrencies the central bank also needs to consider aspects.

such as the infrastructure required Recently, the Deputy Governor of the Reserve Bank of India (RBI) said in a speech that continuous efforts were underway to evaluate the application and feasibility of Central Bank Digital Currency (CBDC), acknowledging that virtual currencies are the current are part. There will also be a need for the future as well.

While getting started in crypto investing, keep in mind that stick with only one crypto at the initial stage. Try not to spread your legs here and there. The cryptocurrency market sees tremendous volatility, so it would be smart to start with a small investment.

types of cryptocurrency

bit coin

You must have known about bitcoin, it is the most expensive cryptocurrency in the world.

sia coin

Siay coin comes after bitcoin in terms of growth, its growth is increasing continuously. It is also known as SC.

sys coin

It is a very fast working coin which usually works for money transactions and works more securely It is also used for selling/buying assets. It is a part of bitcoin that works in the deep web.

voice coin

As the name suggests, it is a voice coin, so it is used to set the value of the work of musicians and singers.

monero

Monero is also a coin of cryptocurrency that uses different types of security. It is named Ring Signature. It is widely used in dark web and block market. Smuggling is done with its help. Black marketing is done with the help of this currency.

Cryptocurrency is a word made up of two words. Crypto which is a Latin word derived from cryptography and which means hidden / hidden. Whereas currency also comes from Latin currentia, which is used for money-money. So cryptocurrency means hidden money. or secret money. Or Digital Rupee. Kshitij Paub, Lead International & Commodities Research, Capital Via Global Research Ltd., and a stalwart of cryptocurrencies, explains that in general, cryptocurrencies are a kind of digital money, which you cannot touch, but can hold. That is, it is a digital form of currency. It is not in your pocket in a solid form like a coin or note. It happens completely online.

Bitcoin Most Expensive Virtual Currency

Simply put, cryptocurrency is a digital cash system, which is built on computer algorithms. It stays online only in Digit form. There is no control of any country or government on this. Initially it was declared illegal. But later due to the increasing popularity of Bitcoin, it has been legalized in many countries. Some countries are even bringing their own cryptocurrencies. Bitcoin is the most expensive virtual currency in the world.

How does Cryptocurrency work

The popularity of cryptocurrency currencies has increased over the past few years. They are used through blockchain software. These digital currencies are encrypted ie coded. It is managed through a decentralized system.

In this, each transaction is verified by digital signature. Its records are kept with the help of cryptography. Purchasing is called Cryptocurrency Mining because every information has to be created digitally in the database. Those who do this mining are called miners.

To understand more in simple language, cryptocurrency is a virtual currency based on blockchain technology which is secured by cryptography. All this work is done through powerful computers. Kshitij even says that it is almost impossible to copy its code.

How is the transaction done

Whenever a transaction occurs in cryptocurrency, its information is recorded in the blockchain, that is, it is kept in a block. The work of security and encryption of this block is done by the miners. For this, they solve a cryptographic puzzle and find the appropriate Hash (a code) for the block.

What happens after finding the hash?

When a miner secures a block by finding a strong hash, it is added to the blockchain and verified by other nodes in the network. This process is called consensus.

What happens after consensus is reached?

If the consensus is reached, the block is confirmed to be secure. If it is found to be correct, then cryptocoin is given to the miner who secures it. It is a reward which is considered to be proof of work.

How many are like?

Now a question is also arising in the mind that if it is in digital form then how many types are there.  there are more than 1800 crypto currencies available. Which you can also use apart from Bitcoin. There are Ethereum (ETH), Litecoin (LTC), Dogecoin, Faircoin (FAIR), Dash (DASH), Peercoin (PPC), Ripple (XRP).

How People Trust Cryptocurrencies Predicted that bitcoin would end around $180-$200. But with the mass adoption by the masses it is gaining more trust. In the last quarter, about $700 million dollars were added to the market cap of bitcoin. However, the price has almost more than doubled since September 2020.

Many countries are going to bring cryptocurrencies

Although it has been debated that this bubble is in space and can burst at any time, it has become more valuable with the widespread acceptance and entry by new investors. It has to be trusted because many countries are now considering bringing their own cryptocurrencies. Earlier the government was contemplating to ban it, but now it has seen softness.

Who are the Indian market players?

Bitcoin Wallet is very similar to our mobile wallet. Where we store our money and do transactions from it. WazirX, Unocoin, Zebpay are Indian companies that are in the business of bitcoin.

What is the WazirX Finder called?

Nischal Shetty, Founder and CEO of WazirX said in an interview, 'There is a lot of confusion about this in India right now. Because there is no regulation for this in the country. People get scared when they hear about it. In fact, a lot of things on the Internet are unregulated. E-commerce including ola, uber are also unregulated. The most important thing for investors is that if not regulated, the chances of fraud and scam increase.

How to buy and sell crypto?

The answer to this question has also become easy now. Due to the increasing popularity, there are now many crypto exchange platforms in the market. In such a situation, it is quite easy to buy and sell cryptocurrencies like Bitcoin and Dogecoin in the country. Popular platforms include WazirX, Zebpay, Coinswitch Kuber and CoinDCX GO. Investors can also buy other cryptocurrencies such as Bitcoin, Dogecoin and Ethereum from international platforms such as Coinbase and Binance.

What can be bought with crypto?

The world's most expensive diamond has been bought with cryptocurrency in July. It has become clear from this that material things can also be bought from this in future. However cryptocurrencies cannot be printed in the room of notes and coins. But still it has its value. With Cryptocurrency, you can buy, trade and invest goods, but you cannot keep it in your vault. Nor can they be kept in the locker of the bank. Because it stays online in the form of Digits. It is also called digital money, virtual money and electronic money. Its value is much more than the physical currency. Some of the top cryptocurrencies are worth thousands of times more than a dollar.

What is Cryptocurrency Market?

The place where the trading and trading of cryptocurrencies takes place. It is known by names like Cryptocurrency Exchange, Digital Currency Exchange (DCE), Coin Market and Crypto Market.

Conclusion

 Cryptocurrency currency cannot be called a good capital instrument because there cannot be any kind of control over it.

Due to lack of government control, it is not in good exchange system.