What is cryptocurrency? – This question arises in the mind of all of you whenever you hear about crypto currency from anywhere. Cryptocurrency is often discussed but very few people know about it. Cryptocurrencies continue to be the hottest topic of the present time. Where its popularity has increased all over the world.
On the other hand, if we talk about India, the number of people investing in it has increased. In simple language, we can say that crypto currency is a digital or virtual currency. This virtual currency is protected through cryptography. Only online transactions can be done through this currency, there is no interference of any third party in this.
The most interesting thing about crypto currency is that all the currencies of the world are issued by one country or the other, but there is no control of any country’s government or bank on crypto currency, nor is there any authority of crypto currency. Price can be fixed. Today hundreds of forms of crypto currency are present in the world such as – bitcoin, ether, litecoin and monero etc. are some of the popular crypto currency.
So without wasting time let us tell you what is cryptocurrency and how does it work.
Table of Contents
What is cryptocurrency
Crypto currency is a means of financial transaction. Just like Indian Rupee and US Dollar, the only difference is that it is virtual and neither you can see it nor you can touch it. . That’s why cryptocurrency has also been named as Digital Currency.
Its entire business is done through online medium only. Apart from India, more importance is being given to this currency in other countries. Cryptocurrencies are getting a huge boost in the trading sector. Digital currency is a Peer to Peer Electronic System. Which is easily used through the Internet. At present, the use of digital currency in buying Goods and Services has started increasing instead of regular currencies.
In this system, work can be done even without informing the government and banks, so some people believe that cryptocurrency can be used in a wrong way. If we do Cryptocurrency first, then it will be Bitcoin which was first brought in the world for these works. If we see today, there are more than 1000 Cryptocurrency in the whole world, but only a few of them are more important, about which we will know later.
If we talk about all cryptocurrency, then the first of them became famous like – Bitcoin. It was also made the first cryptocurrency, but Bitcoin is used the most in it. There were many controversies regarding Bitcoin, but today Bitcoin is still at the top of Cryptocurrencies.
So friends, let’s move this article forward and tell you about some other Cryptocurrencies here, maybe you already know some of it.
How does cryptocurrency work?
What is blockchain? – Cryptocurrencies actually work through Blockchain. That is, a record of transactions is kept in it. , Also it is monitored by Powerful Computers, which is called Cryptocurrency Mining. And those by whom this mining is done are called Miners.
When there is a transaction in cryptocurrency. So his information is recorded in the Blockchain. That is, it is kept in a block. And the security and encryption of this block is done by the miners. For this, they solve a cryptographic puzzle to find the appropriate hash (a code) for the block.
What is bitcoin?
To know what is bitcoin, it is very important to understand that the basic form of cryptocurrency is bitcoin. Actually “Crypto” is an English language word and its Hindi translation is “secret”. BTC is used on the method of cryptography. Cryptography means the art of solving coding language. Bitcoin can be saved only in Digital Wallet. Its transaction is possible only through the Internet. Bitcoin only comes in the 0 to 1 series.
Actually bitcoin was created by Satoshi Nakamoto in 2008. But in 2009 it was launched as open source software. The smallest unit of bitcoin is a satoshi and there are 100 million satoshis in a bitcoin.
What is blockchain? (blockchain technology)
You must have seen the account book, so you can understand it in simple words that blockchain is a digital public ledger. Crypto currency is operated only through this digital ledger. Every transaction is recorded and allocated to a public ledger.
The specialty of Blockchain technology is that even once a transaction is registered here, it can neither be removed from here nor can there be any change in it. In this, every transaction is verified by digital signature. These digital currencies are encrypted (coded) and controlled through a computer network.
Due to this feature of blockchain, there is no need for a trusted third party such as a bank for the transaction of crypto currency. In this way, blockchain is a technology whose benefits will be maximum in the financial sector in the coming times. It is expected that with the help of blockchain, the cost of transactions will also decrease in the coming times. This will increase financial transparency and also get rid of fake transactions.
How and where to buy crypto currency?
We hope that from this article of ET Hindi, you must have got basic information about crypto currency. If you want to invest in crypto currency, then being a digital currency, you will have to invest in it online. There are many platforms where you can find out the current price of crypto currency and buy or sell it.
We are going to tell about some of the major crypto currency buying and selling online websites. You can buy or sell crypto currency by creating your account on all these websites. Some of them have also launched their mobile app, by installing which you can invest in crypto currency from your mobile as well.
- CoinSwitch
- Wazirx
- Unocoin
- Zebpay
- Coinbox
- BTCxIndia (BTCxIndia)
- LocalBitcoin
How to invest in Cryptocurrencies?
To invest in Cryptocurrencies, you have to choose the right platform. Because if the right platform is not chosen then you may have to pay more fees while trading. Similarly, the most popular Cryptocurrency platform in India at present is “Wazirx”.
Investing and trading in it is very easy and its founder is also an Indian. I have also invested in it and have done so for many years. If you want too, you can invest your money in it.
Types of Cryptocurrencies
Currently there are many forms of crypto currency. Here we are discussing some popular crypto currency. Bitcoin is considered to be the world’s first crypto currency. It was created by Satoshi Nakamoto in 2009. It is a de-centralized currency, that is, it is not controlled by any government or institution. Due to the continuous increase in the price, people have a lot of attraction towards this currency.
1. Bitcoin (BTC)
If we talk about Cryptocurrency and there is no talk of Bitcoin, then it is not possible at all. Because bitcoin is the first cryptocurrency from the world. Which was created by Satoshi Nakamoto in 2009. It is a digital currency which is used to buy goods and services only online.
It is a De-centralized currency which means that the Government or any institution has no hand over it. If we talk about today, then its value has increased a lot, which is now around 13 Lacks, the value of a coin. From this you can find out about its present importance.
2.Ethereum (ETH)
Like Bitcoin, Ethereum is also an open-source, decentralized blockchain-based computing platform. The name of its founder is Vitalik Buterin. Its Cryptocurrency token is also called ‘Ether’.
This platform helps its users to create a digital token, with the help of which it can be used as a currency. Recently, due to a Hard Fork, Ethereum has been divided into two parts, Ethereum (ETH) and Etherim Classic (ETC). It is the second most famous Cryptocurrency after Bitcoin.
3. Litecoin (LTC)
Litecoin is also a decentralized peer-to-peer cryptocurrency which is an open source software released under the MIT/X11 license in October, 2011 by Charles Lee, a former Google Employee.
Bitcoin has a big hand behind its creation and many of its features are similar to those of Bitcoin. Litecoin’s block generation time is 4 times less than that of Bitcoin. That’s why transactions are completed very quickly in this. Scrypt algorithm is used in this to do mining.
4. Dogecoin (Doge)
The story of the formation of Dogecoin is quite interesting. It was compared to a dog to make fun of Bitcoin, which later took the form of a Cryptocurrency. Dogecoin founder’s name is Billy Markus. Like Litecoin, Scrypt Algorithm is also used in this.
Today Dogecoin’s market value is more than $197 million and it is accepted in more than 200 merchants all over the world. In this also mining is very quick as compared to others.
5. Tether (USDT)
According to Coinmarketcap.com, Tether is the largest stablecoin with a market cap of $78 billion as of January 17. It uses the blockchain technology of Bitcoin. Stablecoins have reduced volatility pegged to the US dollar and euro, and are one of the most popular options for those looking to invest in cryptocurrencies but reluctant to encounter volatility.
6. Binance Coin (BNB)
This cryptocurrency is the native cryptocurrency of the Binance crypto exchange, which is the world’s largest exchange by volume. Binance was only launched in 2017 but has expanded very quickly by facilitating trading on its platform.
The crypto has come a long way from its price in 2017 which was just $0.10 to 5200% on 3rd January 2022 to 5200%. According to Coinmarketcap.com on January 17th, Binance (BNB) ranks fourth with a market cap of around $80 billion.
7. Solana (SOL)
Recently, Solana has been facing a downtrend, but the crypto is on the third spot in this list because of its extremely successful 2021. SOL has proven itself to be one of the fastest growing cryptos in the market. Furthermore, there can be no disagreement that SOL is the biggest competitor to Ethereum. SOL token has reportedly gained 13,662% in 2021.
8. Ripple (XRP)
Ripple was released in 2012 and is based on a distributed open source protocol, Ripple is a real-time gross settlement system (RTGS), which runs its own cryptocurrency called Ripples (XRP).
This is very much and famous Cryptocurrency and whose overall market cap is about $ 10 billion. According to their Officials, Ripple provides users with “secure, instant and nearly free global financial transactions of any size and with no chargebacks”.
9.Polygon
This year’s prospects can be considered quite good. And experts believe that the credit goes to Ethereum. Crypto is all set to transition to version ETH 2.0, which relies heavily on layer-2 solutions like Polygon. It could also indicate that Polygon has the edge to experience an increase in value, and is a good option to buy and hold.
Advantages of CryptoCurrency
There has always been some change in the currency of cryptocurrencies. Presently digital platforms are developing and any currency can be easily moved on these digital platforms. So that’s cryptocurrency. That’s why according to the time its many benefits are going to be available to the common man. And those who do trading. They are going to benefit a lot from cryptocurrencies, so let us look at some of the benefits –
- Cryptocurrency hinges on a secure system. That’s why the chances of getting fraud are very less.
- Payment of cryptocurrency through digital means is considered secure.
- Talking about online transaction feeds, it is limited in cryptocurrencies.
- Account created for cryptocurrency remains secure.
- It is very easy to use in currency trading.
- Cryptocurrencies are easier to exchange than regular currency.
- Big platforms are finding a way to access it.
- Currently major platforms like Microsoft Telsa are supporting cryptocurrency exchanges.
Disadvantages of Cryptocurrency
Any monetization has to face resistance to adapt to the new format. It will definitely take time for people to adopt crypto currency. Because it cannot be touched. It can only be used in digital wallets. That’s why most countries consider it appropriate to delay its implementation. However, the craze of cryptocurrency is going to increase in the coming times and some disadvantages associated with it have also come to the fore like:-
- It is very difficult to reverse a cryptocurrency transaction once it is completed.
- The developers have not been able to find any option to reverse the digital currency yet.
- As you have already known, it is saved in a digital wallet and if you forget or lose the digital password or the security associated with it, then it will be difficult for you to find it, so keep the ID safe. Keeping up is a challenge.
- It is currently not possible to recover digital currency in case of a forgotten Wallet ID password.
Conclusion
I sincerely hope that I have explained to you what is cryptocurrency? Gave complete information about Cryptocurrency in Hindi and I hope you guys have understood about Cryptocurrency.
I request all the readers that you should also share this information in your neighborhood, relatives and friends, so that there will be awareness among us and everyone will be greatly benefited by this. I need your cooperation so that I can convey more new information to you.
It has always been my endeavor that I always help my readers or readers from all sides, if you people have any kind of doubt, then you can feel free to ask me. I will definitely try to solve those doubts.
FAQ’s – What is Crypto Currency?
Q1. What is cryptocurrency?
Ans. Cryptocurrency is a digital money. Which is used to buy Goods or Services through the Internet and training is also done in cryptocurrency.
Q2. Is cryptocurrency a safe currency?
Ans. See, cryptocurrency is taking the form of an affluent currency, monetization has happened from time to time. It is possible that in the coming time, considering the increasing field of digitalization, full cryptocurrencies can be implemented. Currently it is also safe. So its disadvantages have also been seen in some dimensions.
Q3. How is crypto currency used?
Ans. Digital currency is used through the Internet. It is impossible to touch it. That’s why it has been named virtual currency. It is transacted online only and can be used without informing the bank.
Q4. How many types of crypto currency are there?
Ans. Different types of cryptocurrencies are being created. Basically the cryptocurrency rests on bitcoin and apart from bitcoin, other cryptos have also been launched.
