What is cryptocurrency? How does cryptocurrency work?

What is cryptocurrency? You must have heard something about cryptocurrency from social media, news or general awareness books, etc.


Since the advent of cryptocurrency in the market, it has become more and more popular and its popularity is increasing day by day.


In today's article, we will share with you what is cryptocurrency, how to use cryptocurrency, how to make money from cryptocurrency? Etc. I will try to discuss the subject in detail.


What is cryptocurrency
What is cryptocurrency? How does cryptocurrency work?


What is cryptocurrency?


Cryptocurrency is a type of digital money that is used only on a digital platform.


Experts also believe that the future of digital money, or cryptocurrency, is far ahead. Cryptocurrency is a type of virtual currency, also known as digital money.


‘Crypto’ means invisible and ‘currency’ means money. In other words, cryptocurrency simply means invisible currency, which can be used but not seen or touched.


The method used to create cryptocurrencies is called cryptography. The first cryptocurrency was introduced to the world in 2009.


In our country (metal) coins are available in the form of coins and notes.


Similarly, cryptocurrency is not physically available. That is, we cannot touch or see this coin.


A type of software program used to manage cryptocurrencies, where cryptocurrencies are stored or stored online.


But like coins or notes, it cannot be touched. This strategy is called the decentralized peer-to-peer transaction strategy.


This coin is stored in a digital wallet. This is why it is also called online money. It is based on blockchain technology.


Cryptocurrency is used very simply. To transfer cryptocurrency, we can do this transaction without the help of any bank.


It can be transacted with the help of a computer, mobile, or laptop.


We know that the currency of Europe (Euro), the currency of the USA ($ dollar) is controlled by the government and the bank, but the government and the bank have no control over cryptocurrency.


There is no government intervention in cryptocurrency. Even so, owning one is still beyond the reach of the average person.


There are currently over 5000 cryptocurrencies available worldwide.


The first name in the world of cryptocurrency is Bitcoin, which is currently the most popular cryptocurrency.


On a cryptocurrency exchange, an online wallet, meaning a digital wallet, is created and linked to the user's bank account.


Whenever we buy cryptocurrency, it is deposited in the online wallet. Coinbase and CoinDcx apps are popular among more people in our country.



What is the value of cryptocurrency?


We all know that there are many countries in the world and all countries have different currencies.


The currencies of all countries are different, such as money, dollar, yen, euro, rupee, dirham, etc.


Similarly, cryptocurrencies have different values. The value of cryptocurrency is many times higher than the value of our country's currency.


The value of cryptocurrency fluctuates all the time. The value of cryptocurrency is never fixed, it is constantly changing. So its value changes from time to time every minute.




What is a cryptocurrency wallet?


We need wallets, lockers, etc. to keep our money. Similarly, wallets are needed to store cryptocurrencies. It is very easily available online.


To save cryptocurrency, you need to choose a good and secure wallet.


We can send and receive cryptocurrencies through Wallet, which means that Wallet is a good medium for us to transact cryptocurrency.



How to save cryptocurrency?


If you want to save cryptocurrency, we will tell you that there are two types of wallet facilities for storing cryptocurrency in the wallet, which are-


  • Hot Wallet: Hot Wallet is connected to the Internet and available online. These include online cloud wallets, mobile wallets, crypto exchanges, software wallets.
  • Cold Wallet: Cold Wallet is not connected to the Internet. It is used offline. These include hardware wallets such as computers, hard disks, mobile phones, USB drives, and paper wallets. Cold wallets are considered to be the safest way to store cryptocurrencies.


Online wallets are considered riskier than cold wallets because online viruses and hackers are more likely to be deceived.


Therefore, in order to use and store cryptocurrencies, one needs to choose the right type of wallet.



How many types of cryptocurrency?


There are more than 5000 cryptocurrencies in the world. There are many people in the world who are now investing their money in cryptocurrencies.


There are over 5000 cryptocurrencies in total, of which we have mentioned here some of the most popular cryptocurrencies. We will talk about some of the popular cryptocurrencies, which are as follows-


  1. Bitcoin (BTC)
  2. Litecoin (LTC)
  3. Etherium (ETH)
  4. Dogecoin (DOGE)


1. Bitcoin (BTC)


Bitcoin is the world's first and by far the most popular cryptocurrency.


It was created in 2009 by Santoshi Nakamoto. Bitcoin has risen in value in a very short time. A bitcoin is currently worth over $ 46,453.20. (in 05/01/2022, 10.20PM)



2. Litecoin (LTC)


Litecoin is a type of virtual money. It is a decentralized peer-to-peer currency.


Litecoin is used for peer-to-peer payment transactions on an instant basis. It was created in 2011 by Charlie Lee.


Currently, it is used more than bitcoin worldwide.


Its transaction time is very short and some of its features are quite similar to the features of Bitcoin.



3. Etherium (ETH)


Just as Bitcoin is a popular cryptocurrency, so is Etherium a popular virtual currency (cryptocurrency). It was created in 2015 by Vitalik Buterin.


It is also known as ether. Currently, Ethereum is the second most popular currency after Bitcoin. It works on the basis of decentralized blockchain technology.



4. Dogecoin (DOGE)


Dogecoin is a hot topic right now. It was created in 2013 by Jackson Palmer and Billy Marcus.


This coin was made by people for fun, which later became very popular and people started investing in it.


After seeing which, its value increases. Famous businessman Elon Musk also invested in it to support it.


Dogecoin has made its place in the market in a very short time. Its value has increased rapidly in the last few years.




The advantage of cryptocurrency


Talking about the advantages of cryptocurrency, its advantages can be seen as under -


  • If we talk about other payment options, its transaction fees are relatively low.
  • The risk of cryptocurrency fraud is much lower.
  • Its account is more secure than other platforms because it uses different types of cryptography algorithms.
  • There is no central government or bank intervention in cryptocurrency. So no order is required for its transaction.
  • Cryptocurrency is a type of virtual currency that is relatively secure.



The disadvantage of cryptocurrency


While cryptocurrency has many advantages, it also has some disadvantages which are as follows-


  • It is a kind of virtual currency, which stores data online. That is why it is possible to hack.
  • This virtual currency has no reverse transaction facility i.e. once the transaction is done it cannot be withdrawn.
  • No one has control over the value of cryptocurrency. Its value can increase or decrease at any time.
  • If your wallet ID is lost, it is difficult to recover. In that case, all the money in your wallet will be lost forever.



How to make money with cryptocurrency?


As we mentioned above, Bitcoin is an important type of cryptocurrency as well as popular.


So at the same time if the question arises, how to make money from cryptocurrency? Popular cryptocurrencies like Bitcoin are worth more than a few million dollars.


It is possible to make a good income by doing business and investing. This means you can make a lot of money using it. With it, you can meet your daily needs.



What is a cryptocurrency exchange?


Cryptocurrency exchanges are used to buy and sell cryptocurrencies. Many types of cryptocurrencies can be exchanged in cryptocurrency.


Through which you can buy and sell many more types of cryptocurrencies like Bitcoin, Ethereum, StoreJ, Litecoin.


Now that you know about cryptocurrency, the question is how to buy and sell cryptocurrency?


There are many applications available online for cryptocurrency exchange.


These mainly include Coinswitch, CoinDcx app, etc., through which cryptocurrencies can be bought or sold.



Conclusion


We hope you find out what cryptocurrency is through this article.


Here we have tried to discuss in detail all the important issues related to cryptocurrency, which will help you to get detailed information about cryptocurrency.


If you have any questions or comments about the article, please let us know in the comments section.


Thanks.

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