BASIC CRYPTO INTRODUCTION
Cryptocurrency is a relatively new type of money that operates in a completely different way than the traditional currency we all use every day. The most basic difference is that it’s exclusively a virtual currency, meaning there are no physical cryptocurrency coins or notes you can keep in your back pocket.
The word “crypto” in cryptocurrency refers to the special system of encrypting and decrypting information – known as cryptography – which is used to secure allt ransactions sent between users. Cryptography plays a vitally important role in allowing users to freely transact tokens and coins between one another without the need for an intermediary like a bank to keep track of each person’s balance and ensure the network remains secure.
HOW DOES CRYPTOCURRENCY WORKS ?
While the cryptocurrencies themselves act as a medium for exchanging or for storing value, they all rely on a special type of public ledger technology called “blockchain” to record data and to keep track of all of the transactions being sent across the network.
A blockchain is exactly what it sounds like – a virtual chain of blocks each containing a batch of transactions and other data. Once each block is added to the chain, it becomes immutable, meaning the data stored inside it cannot be changed or removed.
DIFFERENCE BETWEEN CRYPTOCURRENCIES AND DIGITAL CURRENCY
- Cryptocurrencies are digital assets based on blockchains. They are the vehicles for transferring value on decentralized networks and applications.
- Digital currencies are any form of money in digital form, be it cryptocurrencies or central bank-backed virtual money.
WHAT IS CRYPTOCURRENCY MINING?
Cryptocurrency mining is the process where specialized computers, also known as nodes or mining rigs, validate blockchain transactions for a specific cryptocoin and, in turn, receive a mining reward for their computational effort.
DIFFERENT TYPES OF CRYPTO
Bitcoin was the first of the many cryptocurrencies that exist today. Following its introduction in 2009, developers began to create other variants of cryptocurrencies based on the technology powering the Bitcoin network. In most cases, the cryptocurrencies were designed to improve upon the standards set by Bitcoin. That is why other cryptocurrencies that came after bitcoin are collectively called “altcoins” from the phrase “alternatives to bitcoin.”
Prominent examples are:
• Ethereum
• Litecoin
• Cardano
• XRP
• Polkadot
• EOS
• Solana
• Bitcoin Cash
THE FUTURE OF CRYPTOCURRENCY
Some economic analysts predict a big change in crypto is forthcoming as institutional money enters the market.3 Moreover, there is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to conventional currencies.Some predict that all that crypto needs is a verified exchange traded fund (ETF). An ETF would definitely make it easier for people to invest in Bitcoin, but there still needs to be the demand to want to invest in crypto, which might not automatically be generated with a fund
THE CRYPTO BILL IN INDIA
The cryptocurrency bill is before the Union Cabinet and it is likely to take a decision soon, Finance Minister Nirmala Sitharaman has said.The proposed legisation on digital currencies was to be presented in Parliament during the monsoon session but that did not happen.
The bill has reportedly recommended that all private cryptocurrencies, except virtual currencies issued by state, be prohibited in India. However, crypto experts say they are hoping for the best.So,there is nothing clear about future of crypto in india till date.
HOW TO INVEST IN CRYPTOCURRENCIES?
You can invest in cryptocurrency through a crypto exchange .Some of the top crypto exchanges in India are — WazirX, CoinDCX, Coinswitch Kuber and Unocoin—users have to sign up with their KYC credentials, download the app,and buy cryptocurrency. These exchanges also help you to monitor the value of cryptocurrency and buy or sell it.Coin dcx has become india’s one of the fastest growing unicorn startup.
SHOULD YOU INVEST IN CRYPTOCURRENCIES?
If you are considering investing in cryptocurrencies, it may be best to treat your “investment” in the same way you would treat any other highly speculative venture. In other words, recognize that you run the risk of losing most of your investment, if not all of it. This is totally high risk-high return kind of asset.
OUR VIEW
Some of the team members of THE SUCCESSLOGY had invested in cryptos earlier but the cryptocurrency market has been very unstable recently.Investing in Cryptocurrency is now a very uncertain & dangerous activity .We suggest that we should wait for government’s regulations and then decide about it.
Happy Learning
Team,The Successlogy
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