WHAT IS CRYPTOCURRENCY?
A cryptocurrency is a virtual or digital currency secured by cryptography which makes it impossible to double spend or counterfeit. Most of the cryptocurrency is somewhat like a decentralised system based upon the blockchain technology. They are never issued by a central authority that makes it secure from any sort of manipulation or government interference.
It can be understood as a form of digital cash that is usually anynomous and secure. The first type of cryptocurrency was BitCoin developed in 2009 and it is still the world's most famous cryptocurrency. There are more than 20,000 types of cryptocurrencies available on the Internet as in 2020.
HOW DOES CRYPTOCURRENCY WORKS?
Cryptocurrency uses decentralised technology which helps a user to make secure payments and store money. They need not use their name or the details of the bank. It runs on a distributed public ledger known as blockchain, which is a record of all transactions held by the currency holders and is frequently updated by them.
Units of cryptocurrency is developed by a process known as mining which involves computer powers to solve complicated mathematical problems through which coins are generated. Transactions which involve stocks, bonds, and financial assets could be eventually be worked upon by using this nascent technology.
WHY WOULD YOU USE A CRYPTOCURRENCY?
Cryptocurrency is a very secure medium and is known to provide a level of anonymity. The transactions made by them cannot be reversed and or faked and it requires a very low fees. This makes it more cost effective and reliable than other convectional modes of transaction. As they are still nascent, the cryptocurrency markets have boomed overnight and they are promising source to convert a small investment to a large sum!
BEGINNERS GUIDE TO DIGITAL CASH:
Digital cash is known to us in many ways: electronic cash, digital currency, e-money, etc. The most used and popular e-money is cryptocurrency BitCoin. People basically use physical cash to buy digital credits which are usually stored in a digital wallet. You need not install any hardware or software to use your digital cash. It is just like physical cash.
So let us discuss some advantages of digital cash or BitCoin:
- Digital cash is never adversely affected by the economy of a country.
- Digital cash can be transferred from one corner of the world to another corner within seconds which is expensive and time consuming in case of physical cash.
- It uses the existing computers and and Internet networks making is very less expensive.
- Availability of many BitCoin ATMs
- The greatest advantage as stated earlier that it cannot be counterfeited or cheated. It is very safe.
THINGS TO REMEMBER WHILE INVESTING IN CRYPTOCURRENCY:
- Choose the right wallet.
- Invest wisely. Invest the amount that you may afford to lose.
- Don't indulge in taking loans.
- Do your own research, monitor the news wires, and view technical analysis on the respective cryptos that you decide to go within a loan to invest.
- Don't get over ambitious and greedy when it comes to profits.
Hope you enjoyed reading this article. If you have any related questions feel free to comment. I will be the most happy to assist you.