What is Cryptocurrency & How does it work?

What is Crypto Currency? You must have heard something about from social media, news, books of general awareness etc. Ever since the advent of Cryptocurrency in the market, it has remained the best option giving returns, sometimes the bounce of cryptocurrency is more than the stock market, due to which its popularity is increasing day by day.

Very soon it has established its place in the financial market. In today’s article What is Cryptocurrency? How to use Cryptocurrency? How to earn money from Cryptocurrency?

What is cryptocurrency?

Crypto currency is a type of digital money, which is used on a digital platform only. Experts also believe that the future of digital money i.e. cryptocurrency is very far ahead. Crypto currency is a type of virtual currency (VIRTUAL CURRENCY), also known as digital money (DIGITAL MONEY).

‘Crypto’ means invisible and ‘currency’ means currency. Cryptocurrency simply means that invisible currency, which can be used but cannot be seen. The method used to create cryptocurrency is called cryptography. The first cryptocurrency was presented to the world in the year 2009.

Physical currency like our Indian currency is available in the form of coins and notes, in the same way talk about crypto currency, it is not physically available. Cryptocurrency is a type of software program to manage, where Cryptocurrency is stored or kept online but it cannot be touched like coins or notes. This technique is called Decentralized peer to peer transaction technique. This currency is stored in a digital wallet. That’s 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. Its transaction can be done with the help of computer or mobile or laptop.

As we know, our Indian currency Rupee (Rupees), the currency of Europe (Europe), the currency of the USA (USA) is controlled by the government and the bank, but in crypto currency, the government and the bank have control. There is no interference. It is used all over the world.

At present, there are more than 5000 cryptocurrencies available all over the world. The first name in the world of crypto currency is Bitcoin , which is the most popular and popular crypto currency. In a cryptocurrency exchange , an online wallet means a digital wallet is created and linked to the user’s bank account. Whenever we buy crypto currency, it is stored in the online wallet. Coinswitch App and CoinDcx App are more liked in our country and remain popular among people. Let us go ahead and share some more information with you.

What is the value of cryptocurrency? (What is the value of Cryptocurrency?)

We all know that there are many countries all over the world and the currencies of all the countries are different. Just as the currency of all countries is different, such as the value of Rupee, Dollar, Yen, Euro etc. The value of crypto currency is many times more than the value of our country’s currency.

The value of Cryptocurrency keeps fluctuating from time to time. For information, let us tell you that the value of crypto currency is never fixed, but it keeps on changing. Hence its price sees per minute changes in its value from time to time.

What is a Crypto Currency Wallet? ( What is cryptocurrency wallet?)

Just as we need wallets, wallets, lockers, etc. to keep our money, similarly wallets are needed to store crypto currency. It is very easily available online. We can store it in hard drive or USB drive.

It is necessary to choose a good and safe wallet option to store crypto currency . Through wallet we can send and receive crypto currency, that means wallet is a better medium of transaction for us.

How to store crypto currency?

If you want to store crypto currency and want to know how to store crypto currency ? Answer, then let us tell you that two types of wallet facilities are provided to store crypto currency in the wallet, which are as follows-

Hot Wallet: Hot Wallet is connected to the Internet and is available online. This includes online cloud wallets, mobile wallets, crypto exchanges, software wallets.
Cold Wallet: Cold Wallet is not connected to the Internet. It is made available offline. This includes hardware wallets such as computers, hard disks, mobile phones, USB drives, and paper wallets. Cold wallets are considered the most secure way to store crypto currency.

Online wallets ie hot wallets are considered more risky than cold wallets because there is a possibility of getting cheated by online viruses and hackers. Therefore, to use crypto currency, it is necessary to choose a right type of wallet.

How many types of crypto currency are there? ( 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 crypto currency. There are more than 5000 cryptocurrencies in total, out of which we have mentioned about some popular cryptocurrencies. Next we will talk about some popular cryptocurrencies, which are as follows –

Bitcoin (BTC)

Bitcoin is the world’s first and by far the most popular cryptocurrency. It was produced by Santoshi Nakamoto in the year 2009. Bitcoin has increased its value in a very short time. At present, the value of one bitcoin is more than 37 lakhs.

Litecoin (LTC)

Litecoin is also a type of virtual money. It is a decentralized peer to peer currency. Litecoin is used for Peer to Peer Payment Transaction on Instant Basis. It was produced by Charlie Lee in the year 2011.

At present, it is used relatively more than bitcoin all over the world. Its transaction time is very less and some of its features are quite similar to the features of bitcoin.

Ethereum (ETH)

Just as Bitcoin is a famous cryptocurrency, Ethereum is also a famous virtual currency (crypto currency). It was created by Vitalik Buterin in the year 2015. It is also known by another name Ether. At present, Ethereum is the second most popular currency after bitcoin. It works on the basis of decentralized blockchain technology.

Dogecoin (DOGE)

Dogecoin remains the subject of much discussion at the moment. It was created in the year 2013 by Jackson Palmar and Billy Markus. This currency was made jokingly by those people, which later became very popular and people started investing in it. The value of which increased immediately after seeing it. To support this, famous business men Elon Musk also invested in it. Dogecoin has established its place in the market in a very short time. Its value has increased rapidly over the past several years.

What are the advantages of crypto currency? ( What are the profits of Cryptocurrency?)

Talking about the benefits of crypto currency, its benefits can be seen as follows –

If we talk about other payment options, then its transaction fee is relatively less.
The risk of fraud in cryptocurrencies is low.
It is account safe as compared to other platforms because different types of cryptography algorithms are used in it.
There is no interference of the central government, state government or any bank in crypto currency. There is no need for anyone’s order for its transaction.
Cryptocurrency is a type of virtual currency that is relatively secure.

What are the disadvantages of cryptocurrency? ( What are the losses of Cryptocurrency?)

While there are many advantages of cryptocurrency on one side, it also has some disadvantages which are as follows –

It is a type of virtual currency, which stores data in an online medium. That’s why it is possible to hack it.
There is no reverse transaction facility in this virtual currency i.e. once the transaction is done, it cannot be withdrawn.
No one has control over the value of cryptocurrency. Its value can rise and fall at any time.
If you lose your Wallet ID, it is difficult to recover it. That’s why whatever money you have in your wallet is lost forever.

How to earn money with crypto currency?

As we told you in the above information that bitcoin is an important type of crypto currency as well as popular, then at the same time, if the question arises, how to earn money from crypto currency? For information, let us tell you that the value of popular crypto currency like bitcoin is more than millions of rupees. Good income can be earned by trading and investing in it. This means that you can earn a lot by using it. With its help, you can fulfill your daily needs. It can also be used to buy an item.

Cryptocurrency exchange (What is cryptocurrency exchange?)

If you what is crypto currency? and have a little bit of information available to you, then you would also know about crypto currency exchanges. Cryptocurrency exchange is used for buying and selling of cryptocurrencies.

There are many types of crypto currency exchanges available in crypto currency, through which you can buy and sell many other types of crypto currency like Bitcoin, Ethereum, storeJ, Litecoin. After knowing about crypto currency, now the question is how to buy and sell crypto currency? So let’s see the answer below.

There are many applications online for exchanging crypto currency. This mainly includes Coinswitch App, CoinDcx App, Binance App, wajirX App, ZebPay App, BuyUCoin App etc., through which crypto currency can be bought or sold.