What is cryptocurrency |How does Cryptocurrency work

Crypto Currency
Crypto Currency

What is Cryptocurrency

What is Cryptocurrency, whether to invest in cryptocurrency or not, a lot of things must be going on in your mind and it should be going on because of the way cryptocurrency is becoming popular at this time it is not hidden from anyone and you know it too? Cryptocurrency is also paperless. Many people also think that this currency may disappear one day and that we cannot use it in transactions, such different types of questions are in the minds of people and these questions will be covered in this article and I will try to answer them.

Cryptocurrency full review

In earlier times when there was no money, our people used to sell and buy some things through an exchange like suppose you gave a bowl of rice and the person to whom you gave a bowl of rice, He will give you one. Gave the bowl of wheat. One way equal transaction which we call Barter system. In this way, the transaction used to happen earlier but its loss was very high, let’s say. We wanted to give some goods but that person does not want to take that thing from us because he does not want that thing. Due to the absence of this transaction, there used to be a big problem in the Barter system.


In view of this, when the problem kept increasing, coins were invented, many coins were used in copper, silver, gold, and especially the iron, but with these Coins, it was a problem that if there were more coins, then they would be able to carry them and come. There was a problem and if the collected gold was taken away, then there was also the problem of theft.


To get rid of this, governments should establish real money, which gave value so that people can run their exchange through money, thus real money was invented.


Now comes cryptocurrency, Cryptocurrency is exactly like real money, but we understand it easily in digital form in words, suppose I borrowed some stuff from a friend, but due to lack of money, I gave one of my coins to him. Gave him money that when I have money, I will take it from him, the same way I did it to the second person I did not give money to him too, I said that I will give this coin and when there is money I will give to you, but it was that what was the guarantee in it, so in this we wrote in a paper and signed that yes I have given coins instead of Money. And we shared all the three copies with each other for future purposes.


What is Cryptocurrency?

The cryptocurrency was started in 2009 it was started with a few people it is an absolutely paperless currency no one can touch and feel i.e. easily explained in language that it is in digital form like your Money in a phone App through the app is the same way digital currency goes, but like the rest of the cr UPI Money, you cannot withdraw money, it will always be in digital form for life. This is a completely digital form, from which things can be used for the purchase of goods and services.

 How is a Cryptocurrency transaction done?

Cryptocurrency: Its transactions can be paid through interconnected digital means, in which only the person has to pay, and informs the other person through the message whether you give money or take it. This is a complete contrast to the debit and credit cards used in today’s times because cryptocurrency is such a currency that you can only transact through digital medium or online.

 How does Cryptocurrency work


Let me explain Cryptocurrency to you in easy language. As you send money from your bank through an app, whether it is Google pay or phone pay, if you use these apps, then a user ID has to be created in it to open it. You create an ID on it and you then start using it for payment, select the person to whom you have to send the payment, enter your amount in it, and when you are about to send it to someone, UPI asks for the password and It forwards the payment only after entering the password.


 Similarly, Cryptocurrency also works. In that also you have an ID and when you do transaction work, before that you have to send a request message for payment and this ID is with all the people who have to pay. And in this also you are sending cryptocurrency to anyone, then you have to enter the unique password which is your personal and no one else has it exactly at the time of UPI payment when we enter UPI PIN for confirmation.


Why is Cryptocurrency so popular?


The cryptocurrency was started in the year 2009 and till 2017 it has given very good returns to the people. People liked this very much and a large number of people got attracted to it and went on investing in it. What were the main reasons that such a large number of people went towards it and started thinking of investing in it, let’s take a look at these reasons a little.

  •  This was a very new thing for the people and at the same time, it started giving returns which attracted people to it. And seeing the ups and downs in other investing areas, people saw that it is safe to invest in this Cryptocurrency. Its demand started increasing on its own.
  •  The second main reason is that its supply was also limited, it was already decided that the cryptocurrency issue would be in limited form. And understand easily as gold is very precious and cannot be available in large quantities is why its price is very high, the same thing applies to Cryptocurrency.

What are the benefits of Cryptocurrency?

  • We can control Cryptocurrency directly. As the government controls the real currency used in the economy of any country. In the same way, we can control Cryptocurrency
  • Cryptocurrency This is the only currency that is not under any government. No government can control it because no government issues it nor is it dependent on the policies of any government. Even if a country is declared bankrupt but your cryptocurrency will not change. It does not depend on any government but works on demand and supply.

What are the disadvantages of Cryptocurrency?

  • Cryptocurrency does not identify the real buyer, who has bought and who has sold it, due to which governments feel that illegal transactions and illegal activities are used in it. Many governments have put a ban on this.
  • Once payment is done in Cryptocurrency, then there is no option to pay back in it, suppose if you have made a payment to anyone by mistake, then your money is negligible to come back, you cannot even complain about it.

Should I Invest in Cryptocurrency?


It is your personal decision to invest in Cryptocurrency currency because the kind of returns that were received in the initial period is probably difficult to get now, say exports and one of the reasons for this is that it has volatility. There is no control over it. If no government has any control over it, then it increases, and the sudden incident is also a big risk.| 


And it is also very difficult to know which cryptocurrency is more beneficial so that we can invest it so it is up to you whether you want to invest or not because this currency is such that you can call and keep it neither you can keep it in the local market or cannot be used for trading in the market



Question 1  : What are the Different Types of Cryptocurrency?

Answer : Bitcoin (BTC), Ether (ETH), Binance Coin
Question 2 : Top 3 Cryptocurrency Apps for Investing?
Answer : Top 3 Cryptocurrency Apps for Investing are :
WazirX CoinSwitch Kuber Unocoin
Question 3: Top 3 Cryptocurrency Apps for Investing?
Answer :Yes, you can earn money with cryptocurrency, you can also earn profit. This might be a bit risky for you


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