10 ways to know about cryptocurrencies:Everything to know about Cryptocurrency

  

The cryptocurrency industry is growing rapidly as Bitcoin, Dogecoin, Ethereum are the hottest names driving crypto confusion these days. Even if the crypto industry is only a decade old, emerging investors are drawn to it as they see a faster way to make a profit.

Unlike the stock market, the crypto market has no regulation, as a result, its value fluctuates and fluctuates daily. here is everything you need to know before investing in the cryptocurrency market And know about crypto how its works.

                 :  Page Contents:-

• 1. What are cryptocurrencies?
• 2.How does it work?
• 3.Is the cryptocurrency the same as Blockchain?
• 4. How can you keep your cryptocurrency?
• 5. What types of cryptocurrency are available?
• 6. How can you buy cryptocurrency?
• 7. Can you get cryptocurrency for free?
• 8.What can you buy with cryptocurrency?
• 9. How big are cryptocurrencies?
• 10.Is it a legal tender in India?

1. What are cryptocurrencies?

Cryptocurrencies are a digital asset — you can use it as an investment even for online purchases. It is protected by cryptography, which makes it almost impossible to fake or duplicate.

It is noteworthy that cryptocurrency is not physical, which means you cannot pick up Bitcoin and hold it in your hand. And in contrast the Indian Rupee, there is no central authority that maintains the value of the cryptocurrency. Instead, these activities are still widely distributed among cryptocurrency users online.

In addition, each cryptocurrency coin contains a different line of code or code. This means it cannot be copied, making it easy to track and identify as it sells.

2.How does it work?

Cryptocurrencies are not supported by authorities such as the government. Instead, they run through a series of computers. Switching from peers to peers on the web without the middle person.

Cryptocurrencies are classified — meaning that neither the government nor the bank regulates how they are made, what their value is, or how they will be traded. All crypto functions are encrypted with cryptography — meaning that they only allow the intended sender and recipient of the message to view its content.

3.Is the cryptocurrency the same as Blockchain?

No. Blockchain is a technology that allows for the existence of cryptocurrency. Blockchain is a digital transaction logger distributed across a network of computer programs. Think of it as a book that shows the full history of that type of money.

To put it simply, it is a system of recording information that makes it impossible to hack a system. Each block in the blockchain contains several transactions, and each time a new transaction occurs, a record of that purchase is added to each participant's book.

A blockchain website can store a lot of information that can be used and accessed by multiple users at once.

But what makes Blockchain different is that it does not belong to one person or organization — making it more secure and reliable. The idea is that because no one controls the blockchain, they cannot take and rewrite records.

4. How can you keep your cryptocurrency?

Cryptocurrency can be stored in something called a ‘wallet’, which can be accessed using your ‘private key’ — a crypto equivalent of a highly secure password — otherwise the crypto owner can access the currency.

The crypto wallet keeps private keys that give the user access to his or her cryptocurrencies — allowing one to send and receive cryptocurrencies such as Bitcoin and Ethereum. It should be noted that your coins are stored in a blockchain, and a private key is required to authorize the transfer of those coins to someone else's wallet.

There are different types of crypto wallets available that meet different requirements in terms of security, reliability, accessibility, etc.

5. What types of cryptocurrency are available?

Bitcoin is the best-selling cryptocurrency that everyone knows and talks about, but it is not the only type of cryptocurrency available. There are Litecoin, Polkadot, Chainlink, Mooncoin, Shiba Inu, or Dogecoin, there are many . Currently, there are more than 6,000 coins available, such as each CoinMarket cap.

Bitcoin is a very stable currency. Like the first cryptocurrency, Bitcoin traded for less than one dollar. Over the years, Bitcoin has taken over the price level and exceeded the market limit of $ 1 trillion. At that point, investors should consider their options and choose an asset that may best suit their needs.

6. How can you buy cryptocurrency?

Like the stock market, the crypto market has exchanges or brokers that are not promoters. These exchanges often charge a fee or commission for each activity. Some even offer rewards for hitting the milestone, others give them as a joining bonus. This policy may differ for each exchange.

Some of the top crypto transactions in India are - WazirX, CoinDCX, Coinswitch Kuber and Unocoin - users have to register with their KYC details, download the app, and purchase cryptocurrency. This trading also helps you to monitor the value of the cryptocurrency and buy or sell it.

Crypto trading relies on investors to acquire cryptocurrency. This happens when users enter crypto to sell it and other new users come to the trade to buy it — thus, making it easier to trade.

Cryptocurrency can be purchased separately. For example, if you are willing to buy Bitcoin you do not need to buy full Bitcoin (BTC) to own it. You can buy a fraction of Bitcoin. You can own as little as 0.00000001 BTC Currency. This is the case with all cryptocurrencies to own.

7. Can you get cryptocurrency for free?

Yes, you do not need to buy cryptocurrency to own it. You can also earn cryptocurrency by solving cryptographic ratings using computers. This process involves verifying data blocks and adding records to blockchain activities.

It is also noteworthy that some cryptocurrencies such as Bitcoin have a limited amount, which means that there is a high number of coins that will ever be used. Some like Ethereum do not have a large cap but estimate the number of new coins that can be produced each year.

8.What can you buy with cryptocurrency?

India is slowly opening up the idea of   accepting it as a legal payment method. There are some practical problems with cryptocurrency — as it cannot be used for everyday transactions. However, there are ways to use your crypto to make payments easier.

Unocoin, the Bitcoin trading platform, now allows its users to purchase vouchers from more than 90 different companies using Bitcoins. Using these vouchers, you can buy Domino pizza, ice cream from Baskin Robbins, beauty and Himalayan health products, as well as household appliances from Prestige.

In the US, retailers such as Whole Foods, Nordstrom, Etsy, Expedia, and PayPal are now allowing people to pay using crypto.

9. How big are cryptocurrencies?

In January of this year, Bitcoin increased to $ 40,000 (about 29.70 lakh). It continues its run, reaching a record high of $ 65,000 (approximately R48.27 lakh) by the end of April. Then in May, it sank and the whole of June remained below $ 30,000 (about 22.28 lakh). And prices have skyrocketed, and at the time of writing this article, the price of Bitcoin is Rs 51 lakhs approx.

This shows that cryptocurrencies are highly volatile. The cryptocurrency market thrives on speculation. Investors place speculative bets on the stock market, leading to sudden cash flows or high volatility, leading to high volatility.

Additionally, the crypto market is seen as a way to make a quick profit. The part-timers come in hopes of making a quick start but sometimes when that does not happen, they become impatient and withdraw. This repeated involvement and withdrawal contributes to the volatility of digital currencies.

10.Is it a legal tender in India?

Currently, there is no legislature comprising cryptocurrencies in India. But this does not mean that having cryptocurrencies is illegal.

Meanwhile, India is yet to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which will set out a framework to regulate the introduction of the "digital currency", which was to be introduced in the Parliamentary Budget session, but was delayed. up as the government continues to negotiate with stakeholders. To date, only a few countries have accepted cryptocurrencies as a legal tender and the list is expected to remain small.