(◔_◔) What is Cryptocurrency? { How Does Cryptocurrency Work 2022 }
 |
| Cryptocurrency Explain |
Are you what is Cryptocurrency? know about it. If not then today we are going to know about what is Cryptocurrency. There are many types of currency in the world, through which we do transactions. When we buy any Vastu, we give some money to the shopkeeper in return, which is a kind of currency. Different currency is used in different countries in the world. However, in today's time everything has become online, so in such a situation, we do currency transactions online.
If you live in India, then you do online money transactions. But there is also such a currency, which is completely digital currency. We know this currency by the name of Cryptocurrency. Today in this article we will know about what is cryptocurrency, and how to buy it, what are the benefits of cryptocurrency, and all the important information related to it. So let us first know, What is Cryptocurrency
Cryptocurrency
As mentioned above, each country has its own currency. Like America has Dollar, Kuwait has Dinar, and Arabia has Rial, and India has Rupee. Although everyone knows what a currency is, but let us tell you that a currency is a recognized currency from the country. This country is available in the form of paddy to the working citizens. Wherever we work, we are given currency (currency) in return. We can buy any Vaastu in exchange for currency.
But let us tell you that the currency which is canceled by the government, then it does not have any value. As the old 1000 and 500 notes have been canceled by the Indian government, now if you take any of these notes somewhere, and buy something from it, then you will not get anything in return. Same if you buy something with 100 note, then you will get it, because 100 rupee note is recognized by the government.
Currency of any country is printed on pieces of paper and metal. We can touch this currency with our hands. Also, we can keep it in our purse, and can also take it with us. So it is a type of physical currency. But if we talk about Cryptocurrency, then it is a type of Digital Currency , we can never touch it. It lives only in the world of the Internet, and all its transactions are done digitally.
What is Cryptocurrency ?
Cryptocurrency is a type of virtual currency, it does not come under the government of any country. Cryptocurrency is a completely independent digital currency. which is used digitally. Digital Signature is used for verification of its transactions, all this information is saved with the help of Cryptography. It is based on Peer to Peer Electronic System, which is built on Computer Algorithm by Internet.
There is no existence of cryptocurrency, the way we can touch normal currency, in this way we cannot touch cryptocurrency, it is completely virtual currency. It is used to buy and sell Vastu online. The world's first cryptocurrency is named Bitcoin, which was proposed and developed by Satoshi Nakamoto in 2009. Although no one knew bitcoin in the beginning, but today the price of one bitcoin is 23,28,285 Indian rupees.
How to Invest in Cryptocurrency?
In today's time you can invest in Cryptocurrency very easily. However, some time ago it was very difficult to invest in Cryptocurrency. But in today's time there are many such websites and apps on the Internet , where you can invest in Cryptocurrency. But even out of these, it is very important for you to choose a right platform. If we talk about Best Cryptocurrency Investment App in India, then WazirX App is the best App among them. You can invest in any Cryptocurrency here.
Cryptocurrency Value
As already told to you, Cryptocurrency is a type of Digital Currency. It cannot be kept in the bank like notes or coins. We also know it by the name of Electronic Money. But you can buy anything online through Cryptocurrency. Along with this, you can also invest in it, you can also do trading. If we know about Cryptocurrency Value, then it is done in the most expensive currencies of the world. Although the world's most expensive currency is the Kuwaiti Dinar , but Cryptocurrency is thousands of times more expensive than a dinar. And its value never stops at one place, it keeps going up and down, if we see the record of last few years, then it is getting expensive day by day.
How does Cryptocurrency work?
Cryptocurrency runs through a computer network. It is actually based on Blockchain. The record of all the transactions happening here is saved. All the transactions happening here are monitored by the computer. This type of activity is called Cryptocurrency Mining. There is also a lot of Cryptocurrency Mining Software available on the Internet.
As mentioned above, all the transactions of Cryptocurrency are saved inside the Blockchain. The work of complete Security and Encryption of this Blockchain is done by Miners. Therefore a better block code is found by the miners by solving a cryptographic puzzle. When a miner finds a correct and appropriate block code, it is added to the blockchain.
After this it is verified by the computer network, this verification process is called Consensus. After this, when the Verify process is completed, Consensus becomes completely secure, after which some Cryptocurrency Coins are given to the miner who has secured it. These are a kind of reward for Cryptocurrency Coins Miners, these coins are called "Proof of Work".
Types of Cryptocurrencies
Whenever we talk about Cryptocurrency, or we talk about Top Cryptocurrency, the first thing that comes to our mind is Bitcoin, almost everyone knows about it, who knows a little about Cryptocurrency. Too much information. But let us tell you that apart from Bitcoin, there are many Top Cryptocurrency all over the world. You might not know about these Cryptocurrencies. So let's know complete information about
Top Cryptocurrency List –
Bitcoin (BTC)
Bitcoin was started in 2009 by Satoshi Nakamoto. It was the world's first cryptocurrency, which had the most success. Many digital currencies were created even before bitcoin, but none of them became as popular as bitcoin. But Bitcoin had skyrocketed in no time. The highest bitcoin price in India has gone up to Rs 44,54,673. Although it can go even higher, its price keeps going up and down.Tether (USDT)
Tether Cryptocurrency was launched in July 2014. Initially the name of this cryptocurrency was Realcoin. But later it was named Tether. Tether is a stable cryptocurrency, its value is always equal to one dollar. This currency is hosted on the Ethereum and Bitcoin blockchains. The tokens of this cryptocurrency are issued by Tether Limited, a Hong Kong company.
Polygon (MATIC)
Polygon Cryptocurrency was created in 2017. It is a framework to connect Blockchain Network with Protocol and Framework. The company was founded by Sandeep Nelwal, Anurag Arjun, Jayanti Kanani, and Mihailo Bjelic.
Cosmos (ATOM)
Cosmos Blockchain helps to connect networks with each other and do communication and data sharing between them. Cosmos is also known as Network of Blockchain. Uses Tools and Products for Communication, Transaction and Data Sharing in the Cosmos Blockchain Network.
Monero (XMR)
Monero is a popular cryptocurrency, which was released in 2014. Monero is mostly used in the Dark Web. Because Monero Currency is known for its Security Fetures. Therefore this currency is also mostly used for illegal activities.
NameCoin (NMC)
NameCoin is a type of Cryptocurrency, it is linked to Bitcoin, it is completely Bitcoin based currency, which uses Proof of Work Algorithm. Actually Proof-of-Work (POW) proposal was issued to keep cryptocurrencies secure. Just as bitcoin is limited to 21 million coins, it is also limited to 21 million coins. NameCoin can store the data in its own Blockchian Transaction Database. Its main thing is that this Censorship-Resistant Domain Name which is .bit. This is a top level domain, similar to .net and .com domains. But still ICANN (Internet Corporation For Assigned Names And Numbers) has no control of any kind on this domain.
Ethereum (ETH)
Ethereum (ETH) cryptocurrency was launched in 2015, it is the second largest cryptocurrency in the world. Ethereum acts as a kind of decentralized open-source blockchain. It is also known as Ether, and is the most actively used Blockchain Network in the world.
Litecoin (LTC)
Litecoin (LTC or ) MIT/X11 is a Peer-to-Peer Cryptocurrency. It is a type of Open Source Project. It was launched in October 2011. This cryptocurrency is almost the same as bitcoin.
BitTorrent (BTT)
BitTorrent Cryptocurrency is built primarily based on the Peer-to-peer File Sharing Protocol. BitTorrent was created by the Tron Foundation. The main purpose of this mudra is to ease the file transfer activity between the untrusting process participants. This currency is based on Blockchain Technology.
Peercoin (PPC)
Peercoin is a type of Proof-of-Stake Based Cryptocurrency. Which was launched in August 2012. Apart from this, it also uses peer-to-peer and proof-of-work systems. The proof-of-stake system provides new coins to the holding person in a way, which means that the share holder will get 1% of the block of all proof-of-stake. So that it is helpful in making the currency expensive in a way.
Benefits of Cryptocurrency
Cryptocurrency is being used a lot today. Most of the people are investing in Cryptocurrency. But a question comes in the mind of many people, what are the advantages of Cryptocurrency, so let's know, Advantages of Cryptocurrency –
- Cryptocurrency is completely secure, because it acts as a digital currency in a way, there is no possibility of any kind of fraud here.
- You get many Digital Wallets in cryptocurrencies, due to which you can easily invest here.
- Buying and selling cryptocurrency is very easy, you can buy and sell it at any time.
- You do not need any kind of bank for cryptocurrency.
- Its most important thing is that cryptocurrencies are not controlled by any state or government.
- If you invest your money in cryptocurrencies, then you can make good profits here, although it completely depends on the market, but after many years the price of cryptocurrencies has been increasing continuously.
Disadvantages of Cryptocurrency
Just as everything has its benefits, in the same way it also has some disadvantages. In the same way cryptocurrencies have both advantages and disadvantages. So let's know, what are the disadvantages of cryptocurrencies –
- The biggest loss in Cryptocurrency can be to the Investor, because it is not controlled by any authority. Because of which no one knows when the cryptocurrency price will decrease and when will it increase. However, according to the reports of many years behind, the price of Cryptocurrency has not fallen down yet, it is increasing continuously. But still investing in it can be a risky task.
- Cryptocurrency is a type of digital currency, so here there are daily hack attacks. Although it is completely secure, it has happened once with Ethereumn currency.
- Cryptocurrency is completely virtual currency, it does not have any kind of coin or note.
- Cryptocurrencies are mostly used for illegal activities. It is used to buy stolen Credit/Debit Cards, Drugs etc.
Is Cryptocurrency Legal?
This question comes in the mind of all the people, is Cryptocurrency Legal? So let me tell you that the answer is different according to different countries. Because Cryptocurrency is Legal in many countries, and Cryptocurrency is Illegal in many countries. If we talk that Cryptocurrency is legal in India, then the answer is yes. You can buy Cryptocurrency in India. Because the Government of India has not banned it yet. However, some time ago the news of banning Cryptocurrency in India came to the fore. But the Supreme Court of India has removed the restriction imposed by the Reserve Bank of India. But according to some news, the Government of India will issue a law regarding Restricted or Regulated on cryptocurrencies.
History of Cryptocurrency
Cryptocurrency also has a long history of its own, just as other things have a history. Cryptographic was first introduced in 1983 by David Chaum of America, who based the idea of an anonymous cryptographic electronic money. After this, he started in the year 1995 through Digicash.
Cryptographic is an early form of electronic transaction. In 1996, the National Security Agency described the cryptography of encrypted electronic cash in its How to Make to Mint paper. Earlier it was also published in the MIT Mailing List, after which it was also published in American Law Review in 1997.
The first cryptocurrency in history was launched by Satoshi Nakamoto. The name of this cryptocurrency was Bitcoin. Although the name of Satoshi Nakamoto is Presumed, many people have different opinions on this, some people believe that Bitcoin has been created by some organization. The name of the organization that created Bitcoin was Satoshi Nakamoto.
But there is no opinion on this matter. If we also see on Wikipedia about the founder of Bitcoin, then there is no real picture of Satoshi Nakamoto, a picture of a statue has been put there. Initially cryptocurrency was used in the dark web, although it is still used in the dark web, but it has become popular only from the dark web.
Only 3 months after the launch of Bitcoin, there were about 1.2 million transactions in its dark web. This happened because no one knows anything about the transactions happening from here. Here the identity of the user is hidden. The same if we do any transaction by the bank, then the whole eye of the bank is on us. But this does not happen in Cryptocurrency, here all the information is hidden.
Frequently asked questions about cryptocurrencies
What is India's cryptocurrency?
There is no cryptocurrency in India.
How to buy cryptocurrency?
You will find many websites on the Internet to buy cryptocurrencies. You can easily buy cryptocurrencies from WazirX, CoinDCX. Apart from this, you can also install the app of these websites from Play Store. Here you can easily buy cryptocurrencies after completing your KYC.
Note – This article was based on Cryptocurrency. In which you have been told, what is Cryptocurrency, apart from this you have been given many more important information related to cryptocurrency, such as how cryptocurrency works, and many more information has been told to you in this article. . I hope that you must have liked this article. If you have any question related to this article, then you can tell us by commenting. If you liked this article, then please do share this article with your friends, thank you.
24 comments