Cryptocurrency

Cryptocurrency is a method of digital payment that does not depend on any bank for the verifications of the transactions. It is a peer-to-peer system and it enables everyone to send and receive payments from anywhere and at any time. It is a digital currency that works as a medium of exchange through some computer network not depending on any central authority such as a bank or a government for its maintenance.

Cryptocurrency name is originated because it uses encryption to verify the transaction. Unlike any other currency, crypto can not be stored physically and thus is stored in digital wallets. Bitcoin is the first cryptocurrency developed by Santoshi Nakamoto. He described the project as “an electronic payment system based on cryptographic proof instead of trust”. This cryptographic proof is obtained in the form of transactions that are both recorded and verified on the blockchain. Other popular cryptocurrencies are Ethereum, litecoin, dogecoin e.t.c

Investment in cryptocurrency is a complicated issue as it does involve high risks. There have been speculations against its legality and regulations. There are many countries that have declared some of the cryptocurrencies as legal and there are some who still are not ready to accept crypto as a viable payment method. Recently, India decided to legalise it with 30% of tax regulation. Also, El Salvador has also adopted Bitcoin as a national currency. Thus, we can see that crypto has been making quite an impact in the market.

Working of cryptocurrency:

Cryptocurrencies run on “blockchain”, which is a distributed public ledger and keeps the record of all the transactions held or updated by the currency holders.
The mining process is used to create the units of cryptocurrency that involves computer power to solve complicated mathematical problems that generate coins.
If needed, users can buy the currencies from brokers, then spend and store them using digital wallets.
Owning cryptocurrency means that you do not own anything tangible. You own a key that allows you to move a unit of measure or a record from one person to another without any trusted third party.
Although bitcoin has been in the market since 2009, other cryptocurrencies are just emerging in the financial world.

Bitcoin

Cryptocurrency

Working of cryptocurrency:

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