What is cryptocurrency? how to invest?

Introduction: What is cryptocurrency? How to invest?

Cryptocurrency is a virtual money that was first launched in 2009. The first popular cryptocurrency was Bitcoin. It is not like notes or coins, which means we cannot hold them as rupees or keep them safe in our pockets, it is only saved in our digital wallet, or we say it is online currency because it exist only online. Online payment is only possible for Bitcoin. This is the only currency that is not controlled by any government or central banks. It does not follow the traditional banking system it is only transferred from one computer wallet to another. There are more than 5000 cryptocurrencies. we can buy or sell them as easily as Bitcoin. Slowly it is also becoming popular in India. Slow speed in cryptocurrency is, it was firstly illegal. It was banned by RBI. In March 2020 it was removed by SBI. now it is legal in India to use cryptocurrency. Facebook, PayPal, and Amazon are also linked with cryptocurrency. Elon Musk, Jack Dorsey, Mike Tyson, and Kanye West are all cryptocurrency users. In countries like the USA, China, Japan, and Spain cryptocurrency is the most popular used. Moreover, it is very easy to use.

What is cryptocurrency? how to invest?

How to use cryptocurrency?

It is very easy to use cryptocurrency. By using cion-switch bitcoin, you can invest in one click, you can buy or sell it, and it is easier than buying your favorite things from online stores.

BlockChain.

Blockchain is made by combining two words block and chain. This means a chain of blocks. Blockchain is available on all computers and laptops with complete transparency. It will be tracked if anybody wants to cheat or fraud you. Let’s understand with an example. Joy and Hunny are two boys, who both have cryptocurrency, Joy has two bitcoins, one he gave to Hunny. Now every computer checks that, Joy has two bitcoins. By all possible transactions, it’s clear that Joy has two bitcoins. Joy loses its one bitcoin, and that bitcoin is added to Hunny’s other bitcoin. All transactions happen within seconds with complete accuracy.

Miners.

People who take responsibility for the public ledger and maintain it, are called miners

Mining.

The process by which this process is maintained is called mining. The whole process is system-generated. It required special kinds of computers and software. Miners got some rewards in that currency for the involvement of time and money. It is a private digital currency. The transaction is recorded in the type of public ledger. In many other systems, they are maintained in the blockchain.

Now the question arises, Where is privacy?

Here is the strong pillar of cryptocurrency. Cryptography means everything is coded. It is the main reason for the development of cryptocurrency and its popularity. Some people might have an issue that if the money is mine, then why should others control us? Why currency cannot be decentralized. If the coin is for everybody then the control should be for everybody. According to them, why should bank people know how much money they have? Why other trading agencies and pantries should know that? how does the rate of Bitcoin decrease or increase? This decision is taken firstly on how many coins will be produced. When something is fixed, then its cost depends on its demand.
For example, a piece of land is fixed land. When the rate of people buying it will be more, its price will increase, if the rate of people decreases, then the price will also decrease. The same processes happen in cryptocurrency.
Supply of Bitcoin is limited, with only 21 million. So with its demand its price increases or decreases.
Cryptocurrency price also depends on current news, plans of companies, and plans of investors.

Advantages of cryptocurrency.

  • It is decentralized.
  • No government control.

Yes, cryptocurrency is legal in India. Investing in cryptocurrency is legal. But it is not a legal tender of money, you cannot replace it with money. In some countries, it is legal tender, but in India, it is not legal tender. Trade, holding, and investing in cryptocurrency are legal.

Yes, it is absolutely legal to use, buy, or purchase cryptocurrency in the USA.

Why crypto was created?

Anywhere in the world at any time now, this ties into the fundamental idea of how and why the blockchain was created. Now it’s important to understand that this public and transparent nature of blockchain technology is not just a feature; it’s the very heart of the philosophy of cryptocurrencies like Bitcoin. That core idea is the gift of trust from central authorities like banks or governments to a completely decentralized, transparent system where anyone can verify transactions for themselves. This is a massive shift from traditional financial systems where transactions are normally hidden behind bank doors and only accessible to a few privileged partners. By making all transactions visible on that public ledger, also known as a blockchain, cryptocurrencies allow us to imagine a world where financial systems are now open and accessible to everyone. You see when we are talking about cryptocurrencies, we are not just talking about a new type of digital asset; we are talking about transformative technology that has the potential to redefine how we perceive and interact with financial systems by removing intermediaries and opening up financial transactions for verification by anyone.

This is why we invest in and decide to use cryptocurrencies. We are also participating in the larger vision of a more open and decentralized financial world. Now I am sure there is going to be a large percentage of people who do not even care about the philosophy behind crypto, but just think about it like this: in the past few years, the U.S. money supply has increased at an enormous rate.

Leave a comment