what is cryptocurrency? - everything you need to know.

what is cryptocurrency

       what is cryptocurrency? everything thing that you need to know, you'll may find it here. today in this blog you'll get to know about various information about cryptocurrency like 

  • what is crypto currencies?
  • why traders like to invest in cryptocurrencies?
  • platforms to invest in cryptocurrency in india?
  • best crypto's to invest as a beginner.
  • short concept of blockchain.

  • what is crypto currencies?
    crypto currencies is also known as secret money which is derived from the "greek" word "kryptos", here the crypto stands for secret and the currency stands for money or anything which is used as a medium for exchanging of goods and services.

      in short crypto currency is a secret currency which has no physical existence in the real world. however, according to some rumors it is said that in recent past times some of the countries like El Salvador uses this crypto currencies as the medium of exchange for buying and selling of goods and services. it is also known as digital currency

       in the year 2009, the first crypto currency came into existence as an emerging need, because of the global financial crisis in 2008. the first crypto currency was made that is bitcoin (btc) by a programmer or possibly by a group of programmers under the pseudonym satoshi nakamoto by the help of blockchain technology.

       due to this blockchain technology this currency becomes decentralized and for that reason there is no involvement of government, banks or any financial institutions in this currency, hence the world economy does not put any kind of affect on these currencies. the price of these currencies fluctuates due to the demand of the coin or due to a big bull if any.

  • why traders like to invest in crypto currencies?

       the major reason for traders to invest in crypto market is market volatility and it is beyond government boundaries. as traders likes to invest in crypto's due to its market volatility, there is huge fluctuations in the coin market due to its demand and supply, the average price fluctuation of a crypto currency in one day is around 2.5% to 3%. which is usually a good return in one day.

       however, sometimes this coin market also shows some extraordinary fluctuations like rise and fall of the coin price by more than 15% to 20% in a single day. the increase in market fluctuations also increases the profit gaining capacity of the trader which attracts more user towards this market.

       crypto currencies are decentralized currencies and for that reason there is no involvement of government and based on the blockchain technology. hence there is no limitations on buying and selling of these coins which gives the trader a benefit of taxes and charges reliablity.

       however the only charges got levied to a trader on the gateway of payment and withdrawal but on the other hand some of the crypto brokers also charge a short amount on each of the transactions whether it is purchase transaction or a sell transaction.

      well, there are lots of crypto trading platforms available on google play store as well as on ios app store which helps to invest in crypto market some of the most trusted platforms to invest in crypto currency in india are wazirx, coin dcx and binance.

   - wazirx -  its a well known app brought by zanmai labs private limited, it has 10 million+ downloads all over the globe and the average of 4.2 star ratings on play store along with 499 thousands+ reviews.

  - coin dcx - coin dcx is brought by coin dcx officials, it is also downloaded by 10 million + users all over the globe and the average ratings of this trading platform is 3.6 stars along with 202 thousands+ reviews.

  - binance - it is also a well known app brought by binance inc. it also have 10 million+ downloads all over the globe and the average rating of this platform is 4.3 stars along with 592 thousands+ reviews on google play store.

  • best crypto's to invest as a beginner.

    according to some researches there are more than 8000 crypto currencies still available in the coin market but some of the best crypto's to invest as a beginner would be the most well known coins like bitcoin (btc), dogecoin (doge), wink (win), ethereum (eth), tron (trx) etc. as due to its popularity most of the traders likes to execute their trade activities with this coin which keeps the price of the coin in a volatile state and it helps to generate a good returns even in a short period of time. 

      when bitcoin was firstly launched its market price was $0.0008 and it's current market price (cmp) is $38,330.87 dated (22-jan-2022), it means within 15 years it gave an extra ordinary returns, and currently according to some of the rumors still there are some coins which can reach these heights before 2025.

  • short concept of blockchain.

     concept of blockchain refers to the chain of blocks which keeps data of all the transactions in the crypto market. as previously before the blockchain concept the transaction records are just maintained by two or three peoples so it was difficult to know the flowing or circulating number of coins in the market, and after the blockchain technology get into use, it helps to keeps the data of all the transactions in a form of ledger in each of the participants computer to keep accurate data of the transactions and also helps to get rid out of frauds and mischeivious activities

      for an example a dogecoin block contains the information of all the transaction history like buyer information, seller information, transaction amount, number of coins in transaction, etc and this records are maintained in a form of ledger in all the computers of the participants, these participants are also known as miners.

      as the transactions being getting recorded in all of the systems it is diificult or one can say it is impossible to hack these digital coin, inshort blockchain refers to a network of group of peoples who keeps the transactions of the market in a form of ledger in different blocks to keep it organized. 

(note : the above information was provided on the basis of the facts available on google.)

Post a Comment