Crypto Currency

crypto-currency
What is
Cryptocurrency ?
Crypto currency is a digital money

or virtual money. That is money is not
available physically and it is very
secure.
In simple words we can say
cryptocurrency is a money exchange
process.
Most popular example for
cryptocurrency is Bitcoin. It is the first
ever introduced cryptocurrency.
Cryptocurrencies are tax free
and they are not insured too.
Government or banks are not
responsible for cryptocurrency.
Even many countries have banned
cryptocurrency.
What is the purpose of
Cryptocurrency?
The main purpose of cryptocurrency is
to reduce the risk involved in traditional
currency.
It is very easy to use. We can access it

anywhere and anytime. All we need is a
smart phone and a good net connection.
In cryptocurrency the power and the

responsibilities are in hands of the
currency holder.
They help in solving real world

problems.
How does a
Cryptocurrency work?
It uses block chain technology. It is

a very brilliant technology because
both the buyer and seller details are
viewable to each other and so no
broker is needed.
For example if we need to buy a
share from a stock market we can do it
easily with the help of a broker. We
will confirm the exchange order and
then we will receive the shares. We
don’t need to contact the seller in
person.
The reason for choosing a broker is
we don’t know if the seller has the
stock or not. This is known as principle
of novation.
In cryptocurrency involvement of
third person is not needed because all
the transactions are stored in a
common location and it is viewable.
How cryptocurrency is
made ?
Most of the cryptocurrencies are

made using a process called mining.
Mining is nothing but an

algorithm. It is the process of adding
transaction to the blockchain ledger.
Via nodes on the network with

the consensus achieved through a
proof of system.
But not all cryptocurrencies are

made by mining. Some currencies
are created using various other
techniques such as tokens.
Can Cryptocurrency be converted to cash?
The answer for the above question is yes. For example one of the cryptocurrency
Bitcoin can be exchange into cash on a crypto exchange.
There are platforms such as coinbase and kraken that helps the users to convert
digital money to physical cash.
How safe is
Cryptocurrency?
Transactions done using

cryptocurrencies are highly
secure .
There is a chance of earning
huge amount when compared
to mutual funds or share
market but it comes with a
high risk.
Because the volatility of
cryptocurrency is very high.
Either we earn high return or
lose what we have.
Is Cryptocurrency good
or bad?
Every coin has two faces,

similarly there are both good
and bad about investing in
cryptocurrency. One should
know both the faces before
investing. Let us consider only
the good side about investing.
Returns may be massive and
everything is instant. So you
can buy or sell when there is a
fluctuation in the market very
easily.
There is a cold wallet storage
option where we can control
our own private key. This key
helps us to access our coin in
the block chain.
Is crypto illegal?
It varies from one country

to another. In some countries
it is legal and some countries
have banned it.
Crypto is legal in some of
the most developed countries
like U.S Japan and U.k
It is also legal in developing
country like India but it does
not have any regulatory
framework . Countries like
Algeria, morocco, Nepal,
Pakistan and Vietnam have
banned it.
Will banks use Cryptocurrency?
Most are the banks are against the idea of cryptocurrencies because it is a treat to
most of the traditional banks. There are also certain types of banks supporting
cryptocurrencies and investing in it.
Disadvantage of
Cryptocurrency?
One of the biggest

drawback of cryptocurrency is
the security. There are stories
where exchanges are hacked
and peoples who held coins in
those exchanges lost
everything.
There are lot of peoples
with less experience and
knowledge which leads to
huge loss.
Since it is fully digitalized
there is a technical difficulty
such as network issues and so
on.
Can you trust Bitcoin?
Yes Bitcoin’s are really safe. If you are ready to take risk and if you are ready for
investing then be ready for all kind of high and low.
If no of Bitcoin’s available Is less and no of bidders are very large in number the value
automatically increases.
Why we should not use Bitcoin?
Bitcoins are still only accepted by a very small group of online merchants. This
makes it unfeasible to completely rely on Bitcoins as a currency. There is also a
possibility that governments might force merchants to not use Bitcoins to ensure
that users' transactions can be tracked

Crypto Currency

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crypto-currency

Crypto currency is a digital money

It is very easy to use. We can access it

In cryptocurrency the power and the

They help in solving real world

It uses block chain technology. It is

Most of the cryptocurrencies are

Mining is nothing but an

Via nodes on the network with

But not all cryptocurrencies are

Transactions done using

Every coin has two faces,

It varies from one country

One of the biggest

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