What is Crypto Currency and how can it be used?

Recently, there has been a huge jump in the price of bitcoin. You must have also heard about it, then you must also know what crypto currency is?

Cryptocurrency is a type of digital currency that is built on an algorithm developed by a computer. It is a free currency which is not owned by anyone. For this cryptography is used. It is used to purchase goods or services online through the Internet.

There are many countries all over the world and different types of currency run in all the countries. Such as our Rupees in India, Dollars in America and some other countries, Dongs in Vietnam etc. Today we are going to talk through this article about bitcoin and other cryptocurrencies like it.

Even if you do not know much about cryptocurrency, then stay with this post so that till the end you get to know everything about it and you can understand how it works? In today’s article, we are going to give you detailed information about this topic. It will also tell what is its other name, in which country this currency is run, how many types it is etc. If you want to get complete and detailed information about cryptocurrencies, then please read this important article written by us till the end.

What is Crypto Currency?

Cryptocurrency is a type of digital currency for which we have to use cryptography. This currency is mostly used to buy any item or goods or to buy any service preparation. It acts only as a kind of cash system. It can be used only with the help of the internet. Cryptocurrency is such a currency, through which any person can easily keep their money hidden.

For this, there is no need for this person to go to any kind of institutions, banks etc. It can be easily used by that person sitting at home by himself.

What is a Cryptocurrency Wallet?

At this time the era of the internet is going on, under which many make such payments, which are done through the internet only. The same goes for a cryptocurrency wallet. It is used to keep your cryptocurrencies safe.

This is a type of software, inside which you have to generate a code with any of your private numbers and after that your crypto currency wallet is closed and ready and you can keep all your types of crypto currency in it. .

You have to remember that you always remember your code, otherwise you will not be able to use your crypto currency.

When was cryptocurrency introduced?

Do you know when was the birth of cryptocurrency? If not, then we want to tell you your information. Cryptocurrency was introduced in 2009. Which at that time was known as bitcoin. Bitcoin was created by an algorithm engineer from Japan named Satoshi Namketo. From the year 2009 till now, about 1000 types of cryptocurrencies have come, which work as fully electronic systems.

When was cryptocurrency first used?

It was first used only in the form of bitcoin. The cryptocurrency was first used on 22 May 2010. Which was bought by giving 10000 bitcoins to a pizza.

At the time when the pizza was bought by giving 10,000 bitcoins, the cost of one bitcoin was about 10 seconds or less. But today the price of this crypto currency has increased a thousand times and due to most of the purchases by crypto currency, its price is increasing even more.

What is the currency other than crypto currency?

As we told you above, from the year 2009 till now, about 1000 types of crypto currency have come. These currencies are being used a lot these days. In addition to crypto currency, the following are some other currencies.

  • Bitcoin
  • Voicecoin
  • Monero coin
  • Syscoin coin
  • Redcoin
  • Siacoin

Bitcoin BitCoin(BTC):

Bitcoin is the first digital currency, also known as a global decentralized currency. Bitcoin can be used anywhere, at any place. Using this method, the exchange of money is made very fast, it can happen only between two people, that is, no other person is required in it.

Litecoin Litecoin(LTC):

Litecoin was launched in 2011. It is a currency that was one of the first cryptocurrencies to follow the path of bitcoin. This currency is called “Silver to Bitcoin Gold”. The person who created it is named Charlie Lee, an MIT graduate and former Google engineer.

Litecoin is based on an open-source global payment network that works on any decentralized system i.e. it is not owned by anyone. By the way, Litecoin is like bitcoin in many ways, but it has a faster block generation rate and hence helps in making a faster transaction.

You must know that as of January 2021, Litecoin has a market cap of $10.1 billion and a value of $153.88 per token. This made it the sixth largest cryptocurrency in the world.

Stellar Stellar (XLM):

Stellar is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions. Heavy transactions between banks and investment firms usually take place in a short period of time. Apart from this, this transaction lasts for several days.

Due to this, the process can now be done almost instantly without any mediator and it does not cost anything to the transactors. Stellar is a currency that has established itself as an enterprise blockchain for institutional transactions.

It is still an open blockchain that can be used by anyone. Its system allows transactions between any currency all over the world. The base currency of Stellar is Lumens (XLM).

This currency was introduced by Jed McCaleb, a founding member of Ripple Labs and the developer of the Ripple protocol. After some time he left his role with Ripple and co-founded the Stellar Development Foundation. Stellar Lumens has a market capitalization of $6.1 billion and is valued at $0.27 as of January 2021.

Monero Coin Monero (XMR):

This coin is also a type of crypto currency. This currency is made up of a special type of algorithm. For this reason it is also called Ring Signature Currency. Mono is a completely private, secure and untraceable currency.

This open-source cryptocurrency was launched in April 2014 and soon gained immense popularity in the cryptography community. The development of this cryptocurrency is completely donation based and community driven. The main purpose of launching Monero was to provide it scalability and it should not be owned by anyone. That is, no one should have control over it.

It provides privacy by using a special technology called “Ring Signature”. Due to such developed security mechanisms, Monero has developed a reputation  As of January 2021, Monero had a market cap of $2.8 billion and a per token value of $158.37.

Syscoin :

This crypto currency is also called revolutionary crypto currency because it is used to increase the speed of financial transactions. This coin acts like a black chain which is a part of bitcoin itself.

Syscoin is a global network, a distributed ledger and a decentralized database. It is also an altcoin, a digital currency and a traditional token. Syscoin is merged-mine with bitcoin, giving us the most secure and scalable network in the world.

Ethereum (ETM):

It is the first alternative to bitcoin that was developed to be used in its place. It is a decentralized currency that is not owned by anyone.

The goal behind developing Ethereum was to do transactions in a decentralized manner that would give free currency to anyone in the world, regardless of their country or caste.

The application that works on Ethereum runs on its cryptographic token, i.e. Ether. Ether was launched in 2015. It is currently the second largest digital currency by market cap after bitcoin. However, it lags behind most major cryptocurrencies by a margin, however. As of January 2021, the market cap of ether is approximately 19% of the size of bitcoin.

Is crypto currency legal or not?

The decision of whether a cryptocurrency is legal or not depends on the country in which you live and how you use it. Nevertheless, its use is not valid in many countries. Cryptocurrency has been legally recognized in Japan.

In many countries, it has not yet been recognized in any way and while in some countries the cryptocurrency has been placed in the “gray zone”.

That is, crypto currency has not been fully recognized nor has it been banned. 12 currencies more in discussion There was a time when bitcoin was developing very much, who used to have this currency. It used to make them even millionaires in a few days because the profits from their use were very high.

That is why in the decision taken by the Supreme Court of India also, crypto currency i.e. digital currency was recognized.

Benefits of crypto currency:

There are many benefits of cryptocurrency, some of which are mentioned below. 

  • The biggest advantage of crypto currency is that due to being a digital currency, the possibility of fraud in it is very less, that is, negligible.
  • There is a huge amount of profit from the use of crypto currency. Due to this, according to the decision taken by the Supreme Court in India, cryptocurrency was started.
  • Cryptocurrency does not have any controlling body. Therefore, there is no effect of demonetisation and devaluation of any kind of currency on it. 
  • Crypto currency is also used to hide your money, which is its biggest advantage for such people. Most people do it in the form of giving notes to people on special occasions by using crypto currency.

Disadvantages of crypto currency:

There are many types of losses, fluctuations etc. in the price of cryptocurrency from time to time, there are some disadvantages related to this, which are given below.

  • In crypto currency, its value drops by 40 to 50% without warning, which causes a lot of loss.
  • The biggest loss was when the fall in April of the year 2013 dropped the price of the cryptocurrency by almost 70%, which used to be $233 for a cryptocurrency, then its price came down to $67.
  • The biggest disadvantage of cryptocurrency is that black marketing is done very much using it, that is, there are many illegal activities related to the sale and purchase of illegal weapons, drug trade and so on.

Also read: How to take Home loan?

Conclusion:

Crypto currency is a type of digital currency. Through which we can do any type of purchase. It is very secure. And about this, we gave information in full detail here and told what is cryptocurrency?

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