What is crypto-currency? (Definition)

Hello, my dear friends, we will learn about crypto-currency through today’s post.

Through this post, I will cover the following things:

  1. What is crypto-currency?
  2. How many Types of crypto-currency?
  3. What are the advantages and disadvantages of crypto-currency?
  4. Answers to some questions related to crypto-currency.

what is crypto-currency?

what is crypto-currency<definition>?

 

A cryptocurrency (or “crypto”) is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.

A cryptocurrency is a form of payment that can circulate without the need for a central monetary authority such as a government or bank. Instead, cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Type of bitcoin :

Bitcoin is the most popular and valuable cryptocurrency. An anonymous person called Satoshi Nakamoto invented it and introduced it to the world via a white paper in 2008. There are thousands of cryptocurrencies present in the market today.
Bitcoin, which was made available to the public in 2009, remains the most widely traded and covered cryptocurrency. As of November 2021, there were over 18.8 million bitcoins in circulation with a total market cap of around $1.2 trillion. Only 21 million bitcoins will ever exist.
In the wake of Bitcoin’s success, many other cryptocurrencies, known as “altcoins,” have been launched.

Some of these are clones or forks of Bitcoin, while others are new currencies that were built from scratch. They include Solana, Litecoin, Ethereum, Cardano, and EOS. By November 2021, the aggregate value of all the cryptocurrencies in existence had reached over $2.1 trillion.

What are the advantages and disadvantages of crypto-currency?

what is crypto-currency?

 

Advantage of cryptocurrency:

  • Funds transfer between two parties will be easy without the need for a third party like credit/debit cards or banks.
  • Other online transaction alternatives are expensive compare to it
  • Payments are safe and secured and offer an unprecedented level of anonymity.
  • Potential for high returns and Protection From Payment Fraud.

Disadvantage of cryptocurrency:

  • The almost hidden nature of cryptocurrency transactions makes them easy to be the focus of illegal activities such as money laundering, tax evasion, and possibly even terror financing.
  • Everywhere not accept Cryptocurrency.

  • Payments are not irreversible

  • High volatility and potential for large losses Black market activity

Answers to some questions related to crypto-currency:

Q. What Is Cryptocurrency in Plain Words?
A. Cryptocurrencies are digital assets and decentralized systems that allow for secure online payments.

Q. How do I invest in cryptocurrency?
A. To buy cryptocurrencies, you’ll need a “wallet” — an online app that can hold your currency.  Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum.

Q. Is cryptocurrency legal in India?
A. Currently, there is no regulation or any ban on the use of cryptocurrencies in the country. Reserve Bank of India (RBI) orders ban on banks from supporting crypto transactions,

Q. What Are the Most Popular Cryptocurrencies?
A. Bitcoin is the most popular cryptocurrency followed by other cryptocurrencies such as Ethereum, Binance Coin, Solana, and Cardano.

Q. How many cryptocurrencies are there?
A. More than 16,600 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website.

 

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