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What Is Cryptocurrency Beginners Guide to Digital Cash

Do you know what is cryptocurrency? You must have heard its name many times in the news. Ever since the cryptocurrency has come into the market, people have got the option that gives the most returns, some people have even earned more returns than the stock market from this thing.

Due to this its popularity is also increasing day by day. And in a very short time it has made its place strong in the financial market.

Experts believe that the future of digital money i.e. Cryptocurrency is very big. Seeing all this, it is very important for you to know that what is this Cryptocurrency? So that you too might be able to earn some money from it!

Along with this, know how to use it? Where do you buy this? What are its advantages and disadvantages? What is its type? Do you know all this? No no! So let’s take information about all these things in today’s article.

What Is Cryptocurrency Beginners Guide to Digital Cash
What Is Cryptocurrency Beginners Guide to Digital Cash

What is Cryptocurrency

Cryptocurrency is a virtual currency which is also called digital money. Crypto means ‘invisible’ and currency means ‘money’ i.e. Cryptocurrency means invisible money. Cryptography is used to create this currency. This currency was first introduced to the world in the year 2009.

As our money lives in the form of coins or notes, this crypto currency is not physically available. It is a software program that is stored online. We cannot touch it like coins and notes. It is a decentalized peer to peer transaction technology.

It is based on Blockchain Technology. You can store this currency in a digital wallet, hence it is also called online money. We can easily transfer it to each other without the central bank. Its transaction is done through computer.

As you all know that Government and Bank have control over other currencies like our Indian Rupee or Euro of Europe, Dollar of USA, but there is no such control in crypto currency. It is used all over the world.

Today there are more than 5000 Cryptocurrency available around the world. The first Cryptocurrency is Bitcoin and Bitcoin has also been the most popular Cryptocurrency ever.

Value of Cryptocurrency

Like the currency of different countries such as Rupee, Dollar, Euro, Yen have some value. In that way Cryptocurrency also has its own value. Its value is many times more than its currency. Its value is never constant. There are many ups and downs in it.

So its price keeps changing every minute. The value of many top cryptocurrencies like bitcoin is up to lakhs of rupees. That is, you can use this currency to buy goods. That’s why you can also do trading and investment in it.

What is Cryptocurrency Wallet

Just like a wallet or locker is needed to store money, similarly you need a wallet to store cryptocurrency. It is available online. You can also store it on a USB drive or hard drive. It is very important to choose a good and safe wallet to store crypto.

Through wallet, you can send and receive this currency to anyone. There are two types of wallets in this, Hot and cold wallets.

Hot Wallets are connected to the Internet and are available online. This includes online cloud wallets, mobile wallets, crypto exchanges and software wallets.

Cold Wallet does not stay connected to the Internet. These are available offline. This includes hardware wallets such as mobile phones, computers, hard disks, USB drives and paper wallets.

Cold Wallet is the most secure way to store crypto. Online wallets are more risky. Because it is cheated by online virus and hacker. That’s why choosing the right wallet is very important.

Cryptocurrency Exchange

If you have a little knowledge about crypto currency, then you must know crypto exchange. Cryptocurrency exchange is used to buy and sell these currencies.

There are many types of crypto exchanges available. Through this you can buy and sell many types of crypto currency like Bitcoin, Ethereum, Dogecoin, Litecoin and many more.

Such as WazirX, Coinswitch, ZebPay, BuyUCoin, Bitbns, CoinDCX, Binance etc. Through these you can easily buy or sell crypto.

A digital wallet is created in this exchange and that wallet is linked to the user’s bank account. And whenever you buy any crypto, it is stored in that wallet.

The WazirX exchange has been well-liked in our country and is considered a more popular exchange.

Types of Cryptocurrencies / Cryptocurrency List

Today there are more than 5000 Cryptocurrency in the world. Many people are now investing in Crypto. So let’s see some of the most valuable and popular crypto currency.

1. Bitcoin (BTC)

Bitcoin is the world’s first and by far the most popular cryptocurrency. It was made by Satoshi Nakamoto in the year 2009. It is used for online shopping. It is a decentralized currency. Bitcoin has increased its value manifold in a very short time. Today the price of one bitcoin has exceeded 35 lakh Indian rupees.

2. Ethereum (ETH)

Ethereum is also a famous cryptocurrency like bitcoin. Vitalik Buterin made it in the year 2015. It is also known as Ether. It is used for the movement of smart contracts on the Ethereum network. It is a decentalized blockchain pay based crypto currency. Today

Ethereum is the most popular cryptocurrency after bitcoin.

3. Dogecoin (Doge)

Dogecoin has been in a lot of discussion these days. It was produced in the year 2013 by Billy Markus and Jackson Palmer. He made it as a joke. Dogecoin was created for the purpose of making peer-to-peer payments. But later on its value increased a lot and many people started investing in it.

Even famous industrialist Elon Musk has supported it by investing in it. Dogecoin has made its place in the market in a very short time. Its value has increased manifold in the last Some year’s. Its mining also takes place in a very short time.

4. Litecoin (LTC)

Litecoin is also a type of digital money. This is also a decentralized peer to peer cryptocurrency.

Which is different from other cryptocurrencies. Litecoin is used for instant peer to peer payment transactions. It was made by Charlie Lee in the year 2011.

The whole world its supply is more than bitcoin, that is, its total coin supply is 84 million. Its mining time is also 4 times less than bitcoin. And in this the transaction is also completed in a very short time. Its features are very similar to the features of bitcoin.

5. Tether (USDT)

Tether It is a blockchain pay based crypto currency. It is a stablecoin, meaning its value remains mostly stable. Tether was created specifically to create a bridge and stability between cryptocurrencies and fiat currencies. That is, Tether crypto is easily converted into fiat currency.

Tether was launched in the year 2014 under the name of realcoin. Later its name was changed to tether. Mainly the value of 1 USDT is 1 US Dollar.

6. Ripple (XRP)

Ripple is a RTGS i.e. Real time gross settlement system. Ripple is a crypto currency as well as a crypto currency exchange. It is known by the XRP symbol. Ripple was incorporated in the year 2012 as Ripple labs Inc. Manufactured by the company. It is a famous crypto currency. Ripple is based on the distributed open source protocol.

7. Monero (XMR)

Monero is a decentralized open source cryptocurrency. Which was launched in the year 2014. Monero provides a lot of privacy and security to the user. It also makes use of blockchain technology. Monero is also used for online transactions. This cryptocurrency is created from the fork of bytecoin.

8. Peercoin (PPC)

Peercoin is also called peer to peer coin. It is known as PPC or PPCoin. This currency is completely based on the framework of bitcoin cryptocurrency. Peercoin is an altcoin created by Sunny King and Scott Nadal in the year 2012.

This is the first such digital currency. In which the proof-of-stake (PoS) and proof-of-work (PoW) algorithm has been created by combining it. Compared to bitcoin, this currency consumes very little energy.

9. Dash (DASH)

Dash means digital cash. It is an open source cryptocurrency which is an altcoin. It was earlier known as Xcoin or Darkcoin. Dash is completely based on the bitcoin protocol. It was launched by Evan Duffield in the year 2014. Dash coin helps in speeding up the transaction. This currency is successful in providing users with more features than bitcoin.

10. Namecoin (NMC)

Namecoin is the first coin that was created from a fork of bitcoin. It uses the proof-of-work algorithm. This currency is also a blockchain based crypto. It gives more features than bitcoin. Namecoin is developed as the basis of decentralized DNS.

What is Pi cryptocurrency?

pi cryptocurrency or it is also known as PI Network. It was formed in March 2019 by three PhD students studying at Stanford University California. There are three phases of this cryptocurrency, now its last phase is in 2021, after which it will be launched, which means till now none of its trading has started.

This is such a crypto that is mined in its mobile itself for free. Because of this, it has become popular among people in a very short time and due to this many people are also downloading PI Network App from Google playstore.

But there was also news in the middle that the Pi Network app steals the user’s data. Don’t know if this is true, but if you want to earn PI by downloading this app, then some care should be taken. Even if you download the app, then do another mobile in which you do not have any private data, or do not have any other cryptocurrency wallet.

Advantages of Cryptocurrency

Crypto currency is a digital currency, so it is a very secure currency from other currency.

There is no control of any central government or bank in this. Therefore, there is no need to take anyone’s permission in its transaction.

This currency is more secure, due to this fraud cannot be done in it.

It is very easy to do transactions and investments in this.

If the cryptography algorithm is used in this, then it is considered a more secure method.

You can easily store it in a digital wallet and keep it. And you can easily send it to anyone.

Disadvantages of Cryptocurrency

There is no facility of reverse transaction in crypto currency. Once the transaction process is completed, it cannot be reversed.

It is stored in online medium so it can also be hacked.

If your Wallet ID is lost, it cannot be recovered. In such a situation, the money which is in your wallet is also lost forever.

No one has any control over the price of this type of currency. That’s why its price keeps on fluctuating more and more.

future of cryptocurrency in india

The first question that comes before investing in cryptocurrencies is, is cryptocurrency legal in India? Many countries have banned crypto currency. In India too, it was completely banned till March 2020.

But in March 2020, it has been banned and legalized by RBI. Since then many people have started investing in it.

Many experts and investors of the world believe that only crypto can become the currency of the future. You can get very good returns by investing in it.

Conclusion:

I hope you get through this article What is Cryptocurrency and its advantages, disadvantages and how to invest? In this way, all the questions of your mind will be answered. There must have been some improvement in your knowledge through this post.

It has always been our endeavor to give information about what is new in the world on our website and make people financially literate. Through which he could get some money and live his life easily.

Whatever question you have in your mind about this article, definitely ask by commenting. I have a request to all the readers that you must share this article with your friends, relatives, acquaintances. So that they also get some benefit from this information.

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