What is Crypto Currency? Perfect Information
Crypto Currency? Perfect Information-Today the world is changing, things are coming in every direction, till now there was share market, now crypto is current. But you do not know what is crypto currency and how is it used, in this blog we are going to give complete information about cryptocurrency in simple words.
What is Cryptocurrency?
Crypto Currency? Perfect Information
Cryptocurrency is a digital currency, which no person can touch in physical form. It is used for online transactions. It is based on a decentralized system, which is not controlled by any government or bank. This means that there is no central authority to manage cryptocurrency.
In 2009, Satoshi Nakamoto talked about Bitcoin, which was the first cryptocurrency. Today, there are many crypto agencies in the market, such as Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dogecoin (DOGE), etc.
How does cryptocurrency work?
Cryptocurrency is based on blockchain technology. Blockchain is a digital ledger in which all transactions are recorded. Whenever a transaction takes place, it is recorded in a block and this block is connected to the chain.
This technology is absolutely safe and secure because it is difficult to hack the data in it. Every block is connected by a unique code or “hash”, and if someone tries to change a block, the whole chain will have to change.
Names and functions of popular cryptocurrencies
- Bitcoin (BTC) – The first and most valuable cryptocurrency. It is used for digital payments and store of value.
- Ethereum (ETH) – Famous for smart contracts and decentralized applications (DApps).
- Ripple (XRP) – Used for fast international money transfer.
- Litecoin (LTC) – Made as an alternative to Bitcoin, which provides the facility of fast transactions.
- Dogecoin (DOGE) – Started as a meme, but today people also invest in it.
How to Invest in Cryptocurrency
If you want to invest in cryptocurrency, then follow these steps:
- Create a Crypto Wallet – First you need a crypto wallet where you can store your coins. There are two types of wallets:
- Hot Wallet – Online wallets, such as Binance and WazirX.
- Cold Wallet – Offline wallets, such as hardware wallets (Ledger or Trezor).
- Create an account on a crypto exchange – You need an exchange platform to buy crypto. Popular exchanges are:Coinbase
- Complete the KYC process – You have to verify your identity (Aadhaar, PAN card, etc.)
- Start investing – Fund your account (via UPI, bank transfer or credit card) and buy cryptocurrency.
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