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What Is Cryptocurrency? 6 Things You Should Know About Cryptocurrency (Digital Cash)

by Vraj Patel 5 months ago in cryptocurrency

Introduction To The Cryptocurrency For Beginners

What Is Cryptocurrency? 6 Things You Should Know About Cryptocurrency (Digital Cash)
Photo by Dmitry Demidko on Unsplash

1.What Is Cryptocurrency?

Cryptocurrency is digital cash that is using for the exchange of goods and services online. It is a medium of peer-to-peer exchange and direct payment between individuals. And in technical terms "The currency used to transact on a blockchain is called cryptocurrency." Blockchain is a decentralizing technology spread across many computers that manage and record transactions.

The first cryptocurrency was Bitcoin, which was launched in 2009 by Satoshi Nakamoto. All the cryptocurrencies other than Bitcoin are grouping under the category of "altcoins." Today, there are thousands of cryptocurrencies that have created a market value of more than 270+ billion U.S. dollars. You should read the original Bitcoin whitepaper, which started this entire revolution of cryptocurrencies.

2.How many cryptocurrencies are there? What is their Worth?

There are more than 6,500 different cryptocurrencies (according to data from the market research website CoinMarketCap.com). Cryptocurrencies continue to raise money through initial coin offerings, or ICOs. On April 13, 2021, the total value of all cryptocurrencies exceeded US$2 trillion, while the total value of Bitcoin (the most popular digital currency) was approximately US$1 trillion or more.

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3.Is cryptocurrency is legal in India?

As we all know, the Indian market is as vast as the Chinese market, and this ruling provides extensive support for the digital currency world. So, in simple words, investing in cryptocurrency is completely legal and you can do it through various apps and traders in the market.

Before Investing as an individual must keep an eye on government policies as the Central government is planning for a nationwide Bitcoin Ban. But so, we have some good news as well, the recent updates from the parliament suggest that the government is trying to make its own cryptocurrency that can be regulating.

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4.Why Are Cryptocurrencies So Popular?

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People see cryptocurrencies such as Bitcoin as the currency of the future. Supporters think and believe that cryptocurrency such as Bitcoin is the online gold that will become more valuable. And people also do investments in cryptocurrency by doing more researches and showing more interest in cryptocurrency.

Some people like the fact that cryptocurrency makes it impossible for a third party (such as a bank) to manage the money supply because the third party reduces the value of the commission. However, in the case of cryptocurrencies used for peer-to-peer transactions, no third party is involved between transactions.

Some people like the blockchain system in cryptocurrency exchanges because it is a decentralized process and record system and is more secure than traditional payment systems. And now, the government is also trying to make the technology of a blockchain system in their system.

5.Should You Invest In Cryptocurrency?

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Cryptocurrency is a volatile currency or an asset. Now investing in currencies like Bitcoin or Ethereum is considered a "high-risk" investment. This investment is also like any other investment in stocks or mutual funds. It is a high-risk investment.

But the question is that should you invest in cryptocurrency? the answer is if you don't have any debt on you, you should invest the little amount or any amount you want to invest because if the valuation of crypto in the future increases you will be definitely getting a good amount of returns. Now some of the big brands have accepted crypto including Starbucks, Tesla, and other top casinos. Even PayPal is accepting cryptocurrency. But just like any other investments, before you invest in crypto, you need to do more research about that particular cryptocurrency that you want to invest in.

6.Can 1 Bitcoin Make You Millionaire?

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There are only 21 million bitcoins that can be mining in total. So, that's why Bitcoin is also calling online gold. Many people are using to holding their bitcoins for a long time, and whenever the value increases, they will sell the coins in order to get a handsome return. Now, we know that the price of cryptocurrency fluctuates based on too many circumstances.

You can buy some digital products with Bitcoin, for example, you can buy Reddit Gold with Bitcoin. In addition, you can also make money by buying and selling Bitcoin. There are two ways to collect Bitcoin: (1) through mining and (2) through trading. If you have a powerful computer that can run almost uninterrupted, then you can mine Bitcoin, which will make your monthly utility bills higher. Most people involved with the currency are trading.

The advantage of Bitcoins is that they are traceable. Every transaction will be recorded, which means it is a safe currency. So, Therefore, please conduct proper research before investing in Bitcoin or other cryptocurrencies.

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Vraj Patel

I post about Cryptocurrency, Tech Tips & Robotics. I hope you get a idea about me :)

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