What is Cryptocurrency?
Hello friends welcome to my blog today in this blog we are going to discuss about cryptocurrency. Also I will provide you with all the necessary details about cryptocurrency with the help of this post.
If you also want to know in detail about cryptocurrency then you have to read my whole post so that you do not have any confusion about cryptocurrency after reading this post.
Definition of Cryptocurrency
It is usually a digital payment system which does not rely on banks to verify the transaction at any time. It has a very good features through which you can easily enable your transaction and also receive payment from it.
Also if you do not want to carry cash with you all the time then cryptocurrency is very good because it allows you to do transaction at anytime and you will also not face any difficulty while doing transaction through cryptocurrency.
I would also like to tell you that whenever you do a transfer the transaction is always recorded in a public ledger and also it is stored always in a digital wallets.
Also the main feature of this app is that it uses encryption to verify the transaction which the users do. This usually means that cryptocurrency uses advanced coding system for transmitting of cryptocurrency data between your wallets and the public ledger’s. Also the main function of encryption is to provide security and safety to the transfer system.
I would like to tell you that the first cryptocurrency in the world was Bitcoin which was founded in the year 2009 and also in today’s time it almost remain the best known cryptocurrency. Also many of the people are interested in cryptocurrency because it helps in providing profit for the trade.
How does it works?
It usually runs on blockchain which is the distributed public ledger, also it helps you in recording all the transaction which you have done in updated and any also to help you in holding your currency holders.
Mining is usually the units of cryptocurrency which are created, which involves many computer power to solve difficult mathematical problems that are usually generated by the coins. It also helps you in buying the currency from the brokers and you can easily store and spend them by using the cryptographic wallets.
Also I would like to tell you that if you own your own cryptocurrency then you could not own anything. It always provide you different method which allows you to move a record or a unit of measure from the help of the one person to another person without a trusted third party involve in this case.
Also as we all know that Bitcoin has been with cryptocurrency since 2009, but then also cryptocurrency and many of the applications of the blockchain are still emerging in the financial terms and are mostly used and it will be used expected in the future.
With the help of many technology you can easily trade in the transaction which includes bonds,stocks and many other financial assets.
Some of the examples of Cryptocurrency
There are many cryptocurrency which are available. Some of them are
Bitcoin
It was founded in the year 2009 and I would also like to tell you that it was the first cryptocurrency and in today’s time also it is most commonly traded. It was developed by Santoshi Naka Moto who believe for an individual or the group of people whose images identity remains unknown in the world.
Ethereum
It was founded in the year 2015 and it is usually considered as a blockchain platform which has its own cryptocurrency called the ether or ethereum. Also it is considered as one of the most popular cryptocurrency after the Bitcoin.
Litecoin
It is very popular in the world. Also this currency is mostly similar to Bitcoin but in the recent time it has moved very quickly to develop new innovations which includes many faster payments and the process to allow more transaction.
Ripple
It was founded in the year 2012 and it is the distributed ledger system. It can be used to track different types of transactions very easily and not just only cryptocurrency. This company has also work with many of the banks and the financial institution all over the world.
Also many of the non Bitcoin cryptocurrency are collectively called “altcoins” to originally distinguish them from the duplicate.
How to buy cryptocurrency
If you are also interested in buying cryptocurrency and you also want that it could be safe. There are usually three steps which I am going to discuss in this post.
Always choose a correct platform
The first step in buying cryptocurrency is to always choose a correct platform to use. You can also choose according to your choice between a traditional broker or any dedicated cryptocurrency exchange
Traditional brokers
Traditional brokers refers to those brokers who are online broker who always want to buy and sell of the cryptocurrency and also helps in financial assets like stocks, bonds and ETFs. This platform always try to provide you cheapest trading cost but sometimes fewer crypto features.
Cryptocurrency exchanges
There are many types of cryptocurrency exchange which are present in today’s time but each have different function such as offering different cryptocurrencies, wallet storage, interest on account opening and also many features are added in it. It also charges many rupees for buying it.
Funding your accounts
If you have selected the right path for trading than you have to continue your account so that you can start your trading journey. Also most of the crypto helps in exchange which allows the users to purchase crypto using Fiat which is a government issued currency in the US dollars, British pounds or the euro with the help of the debit or credit cards.
Also i would like to tell you that the crypto which are purchase with the help of credit cards are considered very risky because some of the exchange doesn’t support them always. Also there are many credit cards company which does not allow you to purchase crypto.