CRYPTOCURRENCY IN 5 MINUTES

CryptoCurrency is a buzzword in today’s digital times and has caught much attention of Investors and Legislators across the globe. I am sure you have heard about it through News, FB, or friends. Just keep reading to know Crypto Currencies Journey right from the start till the present time


1. What is Cryptocurrency? 

 

The word Cryptocurrency is made of 2 words “Crypto” and “Currency”. Crypto means something secret, coded, or encrypted and Currency means a medium of exchange for goods and services. Cryptocurrency means a virtual or digital currency that is generated through advanced encryption techniques. Furthermore, its movement from one person to another is also encrypted and stored on servers through Blockchain Technology. 
 

2. When was the First CryptoCurrency Born?

 

 The first CryptoCurrency was created in Year 2009 and is known as Bitcoin. In addition to being the oldest, Bitcoin also holds the crown of being the most favorite and costliest Cryptocurrency. As Google says it was created by Satoshi Nakamoto though his existence or presence is unknown. 

 

3. How is Cryptocurrency generated?

 

Cryptocurrency is generated by the Mining process which is undertaken by the process experts called Miners. The mining process involves the below steps:


 

1. Setting up a Mining Rig with powerful supercomputers and complex soft wares. Mining also requires a Graphics Processing Unit (GPU) or Application Specific (ASIC).

 

2. Whenever a crypto transaction takes place the Miners compete together to decrypt the complex code generated through the transfer.
 

 3. The Miner who is the quickest to decrypt the code into a 64 digit bit code gets a reward in form of some units of the Cryptocurrency. 
 

4. The solved code called the block is added to the existing blockchain. That’s why we say every transaction on the blockchain can be verified.
 

4. How many Cryptocurrencies exist on our planet? 
 

On record, there are almost 8000 different Cryptocurrencies as of December 2021. However, the top 10 cryptocurrencies hold more than 95% of the Cryptocurrency Market capitalization 

 

5. How much money is Invested in Cryptocurrency? 


A whopping $ 3 Trillion is invested in Crypto Market as per the Latest survey by PitchBooks data. More than $ 30 Billion was invested in the Year 2021 itself. Stop and think: Do you have Crypto Assets? 
 

6. Is Trading in Cryptocurrency legal? 

 

Considering daily negative reports in News channels talking about Banning Cryptocurrency, people usually view dealing in Cryptocurrency as illegal or holding Cryptoassets as a crime. But mark my words here Buying, Selling, or holding Cryptocurrency is not illegal. You can acquire Crypto assets on various platforms like Zebpay, Coinswitch, Wazirx, etc. Stop and think: Do you have any Digital Currency Wallets on your phone?

 

7. Is CryptoCurrency a Legal Tender? 

 

First, let’s understand What’s a Legal Tender?

 

Legal Tender of a Currency means it’s the ability to be used while buying or selling goods or services. All the Fiat/Paper/Physical Currencies of the world like INR, USD, Euro, GBP, etc act as Legal Tender.

 

But Cryptocurrencies are not recognized as Legal tender in all the countries except one. Do you know which country has accepted Bitcoin as a Legal Tender? It is El Salvador in Central America. It’s President Nayib Bukele is an angelic crypto supporter and has recently commented on Twitter that 2 more countries will soon adopt it as a Legal Tender. Let’s get hooked to Crypto News to know which countries would be playing with fire.

 

8. How can we trade in Cryptocurrency?

 

 Now the question arises, that how can we buy, hold and sell Cryptoassets. Well, this is not as complex as crypto mining. You can trade in Cryptocurrency by using a Digital platform like Zebpay, Wazirx, Coinswitch Kuber, and Coin Dcx.The basic steps to start are 

1. Download the app 

2. Register with your mobile no. 

3. Set up authentication 

4. Safety features 

5. Complete the KYC 

6. Link your Bank account and you are Good to Start.


9. What are the inherent risks of Trading in CryptoCurrency? 

 

Though Cryptocurrency as an investment boasts of a huge market capitalization of almost $ 3 Trillion, trading or investing in Cryptocurrency carries high risks due to the below factors:- 

1. Cryptocurrency markets are unregulated 

2. Cryptocurrency prices are volatile 

3. Cryptocurrency platforms are exposed to hackers 

4. Most of the Cryptocurrency wallets or exchanges have online support only and in case your crypto wallet is hacked you don’t have many legal options for recoverability. If Cryptocurrency is snapped or withdrawn from your wallet fraudulently, it’s almost impossible to track the hacker and the final receiver. Readers please leave your views on Cryptocurrency in the comments box below and let us know what you would love to read more about the New Age Currency – THE CRYPTOCURRENCY

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