How Cryptocurrency works? There was a time when there was no currency. In the earlier times, only goods were available in exchange for goods, but gradually as the technology progressed, other things changed.
Then notes and coins started running and in today’s time its main currency is notes and coins, but apart from that there is another currency running now that is Cryptocurrency.
You must have heard its name from someone or the other because it is so much in trend at this time.
So in this post, I am Going to tell you what is cryptocurrency and how Cryptocurrency works and if you want to know about this in detail then read this post till the end.
So lets get started-
What is Cryptocurrency?-
Cryptocurrency is a digital currency that means you can see it, you cannot touch it. It is managed by Decentralized System.
Decentralized system means that no one person or company has authority or control in it.
Read also: Difference between Crypto Coin and Token.
In this, neither any data can be modified nor any one can be deleted. All transactions in Cryptocurrency happen online. In this, the verification of transactions is done by Digital Signature.
All his records are kept with the help of cryptography. Its biggest thing is that it is completely decentralized i.e. no government or country has control over it.
Initially, when this currency came, all countries had called it illegal, but then as its craze increased in the world, almost many countries declared it legal.
But it is still illegal in many countries. This currency is completely safe. No one can even copy this.
How Cryptocurrency Works?-
Whenever you do any transaction in Cryptocurrency, all its data is recorded through Blockchain.
And in this, to keep your data secure and to avoid any fraud, it is monitored with the help of Powerful Computer.
Which is called Cryptocurrency Mining and by which mining is done, they are called Miners.
Before data is entered in the blockchain, it is kept in a block, then it is the job of miners to secure and encrypt that block.
When the block is confirmed to be secure, then the miner who has secured it is given some Crypto Coins. They get it as a reward.
Cryptocurrency market is the place where cryptocurrencies are bought and sold. In this you will find many platforms from where you can buy and sell cryptocurrency. We are giving you the list of Cryptocurrency Exchange Platform below from where you can easily buy and sell Crypto.
- Coinswitch Kuber
There are many other crypto platforms but these are all the platforms which are very popular at the moment. So you can trade in any of these.
Top 5 Cryptocurrencies–
Friends, as soon as you hear the name of cryptocurrency, you must have thought of Bitcoin, it is that cryptocurrency which is very popular, there will be only one who does not know about it.
So we are going to tell you the names of five such cryptocurrencies which are very popular in the time.
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Ripple (XRP)
- Bitcoin Cash
Advantages of Cryptocurrency-
If you are investing in Cryptocurrency, then first of all you will think that what are the benefits of Cryptocurrency, then we are going to tell you many benefits of it:
- Due to being a digital currency, it is very difficult to be fraud in it.
- You do not need a bank for Cryptocurrency.
- In this, you can buy cryptocurrency at a lower price and sell it at a higher price.
- Cryptocurrency is very secure currency.
- In this, you get many Crypto Platform to buy and sell Cryptocurrency from where you can easily invest in it.
Disadvantages of Cryptocurrency-
Now you know its advantages, it is obvious that whatever has advantages, then it will also have disadvantages. So let’s know about its disadvantages.
- No authority has control over Cryptocurrency, that is, no one has control over the changes in its prices, no one can control it.
- The second disadvantage is that anyone can hack it. This has happened before with Ethereum, so anything can be said about it.
- The third disadvantage is that it has no physical existence like notes and coins.
- Fourth, it can be used for any illegal drugs, weapons and other things.
Is Cryptocurrency Legal or illegal?-
Cryptocurrency may or may not be legal. Because it is legal in many countries and it has been banned in many countries,
so we can say that it is legal or not. Is Cryptocurrency Legal in India? Yes friends, Cryptocurrency is completely legal in India.
If we talk about its value, then it is worth more cryptocurrency than our normal currency.
But in this you will never get to see the fixed price because in this you will get to see changes in it every second.
In this, sometimes you will get more price and sometimes less. That is why we cannot tell you the fixed price in it.
FAQ-How Cryptocurrency Works
1.What is cryptocurrency?
Ans:Cryptocurrency is a digital currency that means you can see it, you cannot touch it.
2. How does Cryptocurrency work?
Ans:Whenever you do any transaction in Cryptocurrency, all its data is recorded through Blockchain. And in this, to keep your data secure and to avoid any fraud, it is monitored with the help of Powerful Computer.
My final thought-How Cryptocurrency work?
if you read this article till here then you have got the all information about what is cryptocurrency and how cryptocurrency work.
If you learn something through this post then you can share this post with your friends and family who want to know about cryptocurrency.