What is Cryptocurrency? Beginners Guide in Simple Words

Cryptocurrency is decentralized digital money that’s based on blockchain technology, most famous cryptocurrency is Bitcoin which is launched in 2009 by Satoshi Nakamoto.

What is CryptoCurrency?

Now everyone listening about mouth to mouth and other media platforms about What is Cryptocurrency? Many of us still do not understand what it is, well everyone knows about online money transformation and all like that cryptocurrency is digital cash or digital currency and technology which is not even currency it has the potential to convert the financial sector and other industries as well.

In another word, Cryptocurrency is digital currency or cash that can exchange for any kind of service and goods like Bitcoin. Bitcoin is also well known digital currency and this is why other alternatives come into the limelight with different features to distinguish themselves.

Origin of Cryptocurrency

Cryptocurrency is a Greek word where crypto is taken which means hidden or nonvisible and current means drive.

The cryptocurrency was originally made for making international transactions easier, Consumers in developing countries often lack consistent access to conventional fiat currency options such as U.S. Dollars or European Euros.

So, this is how Bitcoin was introduced as virtual currency and transaction form of payment in the alternative of money or the traditional form of banking money that can easily be available to them and this cryptocurrency was less involved with government intervention and added benefits of the instant transaction recorded on the public blockchain.

This currency was popular among those who were early Bitcoin proponents.

Then it is called, Cryptocurrency is the biggest form of high-risk investment as well as the biggest losses method. After investing in Cryptocurrency you may have a higher risk of losses but also the biggest benefits. There is a Community that discus on cryptos always have the discussion that like Bitcoin and other currency should be viable monetary or can highly speculative investment opportunities.

What is BlockChain

As mentioned above all cryptocurrency transactions are recorded on blockchain public ledger, Blockchain is a kind of technology that is used for keeping a record of every transaction, like any normal bank account where all your transactions are recorded automatically as same cryptocurrency transaction also recorded on the different block and these block chained together to create a record within the memory of a system that is infinite. Every transaction has different and unique blocks.

Blockchain helps to keep a record of every transaction so it prevents double-spending problems, As these records are easy to keep and copy so digital money requires a mechanism that reliably prevents a currency unit from being “duplicated” or otherwise spent more than once. Cryptocurrency is established and organized without any involvement of the central government the currency is publicly organized by blockchain which is not changeable and can be front in public. Nt any kind of hacker or network can interrupt this transaction, blockchain technology prevent these fraudulent and establish trust between all the investors and public users.

How Many Cryptocurrencies Available?

There is a number of cryptocurrencies available now but the most famous and successful currency is Bitcoin. Developing cryptocurrency is easier and there are many cryptocurrencies is available in the market as they are easier, like Ethereum’s (CRYPTO: ETH) allow to write bits of code to the blockchain, so allow to launch any kind of tokens by using Etherum network. This currency can develop and establish in the market but instead of starting from scratch developers just use pre-existing infrastructure.

There are several cryptocurrencies available in the market and many more thousands about to come, According to coin cap market research, there are 13,669 cryptocurrencies as of late 2022. New tokens are still coming and developing.
As they are easy to Develop.

How Cryptocurrency Works?

Cryptocurrency regulates transactions through cryptocurrency wallets, these wallets are available for digital currency, those wallets don’t keep currency into the wallet even they provide an address to keep your funds into the blockchain. This cryptocurrency has two types of keys which is public and private which allow for the complete safest transaction.

How do Wallets work?

Each wallet keeps two string characters which are input and output, First character string means the Username and the other one defines the password which is the private key. This string of characters performs to secure your crypto account without login to account you can’t make any transaction. If you are investing in cryptocurrency you must have a crypto wallet, if not your crypto investor who suggests investment or any crypto vendor can help you to open crypto wallets as this is also part of their services.

Is Cryptocurrency Safe?

Cryptocurrency is made using blockchain technology which keeps the records of transactions of users. This is hack-proof technology which is why any hacker needs to modify all the blocks simultaneously. In addition, there is two-factor authentication required during the login process where you need to put the code which you will get on your mobile number. This is how developers can keep an eye on every transaction in any account and keep ensure that the account is correct. They apply charges to keep safe your crypto account for their efforts during the transaction.

What is Most Popular Cryptocurrency?

The most famous and old cryptocurrency is Bitcoin, And the other cryptocurrencies are Ethereum, Litecoin, and Tether now trading. Most people trust and invest in Bitcoin.

Now in India these cryptocurrencies is not illegal but not also regulated yet. That means if you get fraud and had gone through any kind of losses, you can’t make any complaint about this, this is not governed by any central bank or authorities.

Here are some Cryptocurrency Names

  • Bitcoin
  • Ethereum
  • Litecoin
  • Binance Coin
  • Polka Dot
  • Cardano
  • Dogecoin
  • Dash
  • Ripple
  • Uniswap
  • Tether

What Determines the Price of Crypto Coins?

Cryptocurrency prices are not determined nor regulated by any government, or central authority, the market itself forces dictate price on a daily basis. Bitcoin is relatively scarce, with a cap of 21 million BTC in circulation, so the value of each token tends to be higher than a cryptocurrency with a much greater supply.

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