What Is Cryptocurrency? What You Should Know.

What Is Cryptocurrency? What You Should Know. 


Now a day, cryptocurrency makes its headlines. Its growing popularity has made it much easier to catch people's eyes. This growing demand and its acceptance in many countries have led cryptocurrencies to become part of the investment. While investing in cryptocurrencies may sound appealing and exciting, it is important to know what digital currency is and how it works.  


If every digital concept is new to you, are in the right place. Read on to get the right view of the digital money market. 


What is cryptocurrency? 


A cryptocurrency is a digital or tangible currency that is protected by encryption, making it difficult to counterfeit or double money. Many low-level cryptocurrencies networks are based on distributed blockchain-led technology forcing a separate computer network. The defining feature of cryptocurrency is that they are usually issued by any authority, which gives them the power to protect themselves from government interference or deception. 

System cryptocurrencies allow secure online payments displayed based on real tokens, represented by the ledger inputs within the system. "Crypto" refers to various encryption algorithms and cryptographic techniques that protect these entries, such as elliptical curve encryption, pairs of public and private keys, and hashing functions. 


Type of cryptocurrency? 


More than 6,700 different cryptocurrency are publicly traded, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial cash offers, or ICOs. The total value of all digital currencies on April 13, 2021, was more than $ 2.2 trillion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was identified at about $ 1.2 trillion.


Top cryptocurrency is- 




Market Capitalization 


$1.2 trillion 


$263.4 billion 

Binance Coin 

$87 billion 


$81.8 billion 


$45.4 billion 


$44.7 billion 


$39.3 billion 


$18.8 billion 


$18.1 billion 


$14.9 billion 


What are the Advantages & Disadvantages of cryptocurrency. 



Cryptocurrencies hold the promise of making it easier to transfer money directly between two parties, without the need for a reliable external company such as a bank or credit card company. This transfer is rather protected by the use of public and private keys and various types of promotion programs, such as Proof of Work or Proof of Stake. 

In modern cryptocurrency systems, the user's "wallet" or account address, has a public key, and the private key is known only to the owner and is used to sign the transaction. Transfers are eliminated with minimal processing costs, which allows users to avoid excessive fees charged by banks and financial institutions for wire transfers. 



The anonymous nature of cryptocurrency transactions prepares them for many illegal activities, such as money laundering and tax evasion. However, cryptocurrency advocates often value their anonymity, citing privacy benefits such as the protection of hackers or activists living under oppressive governments. Some cryptocurrencies are more secretive than others. 

 Bitcoin, for example, is a bad way to run an illegal online business, because forensic analysis of the Bitcoin blockchain has helped authorities arrest and prosecute criminals. Privacy coins exist, however, such as Dash, Monero, or ZCash, which are very difficult to track. 


Is cryptocurrency legal? 


Crypto in India is currently booming, the market has been thriving, and retail investors are adding to the fire with their enthusiasm.Cryptocurrencies are not illegal; anybody can buy, sell and trade cryptocurrenciesIt's unregulated; we do not have a regulatory framework to govern its functioning for now. 


How we can buy cryptocurrency in India? 


  • Install a reputed Indian crypto exchange such as Coinswitch/WazirX/CoinDCX/Bitbns/Zebpay. Make sure you do your research before you settle on choosing an exchange.  
  •  Set up your account by registering and verifying your KYC. Make sure you enable 2 Factor authentication to make your app super secure.  
  • Add your bank details/UPI details to the app. You can add money to the exchange once your bank details/UPI are registered.  
  • Once the money has been deposited into an exchange, you can use it to buy Bitcoin, or any other cryptocurrency available for purchase. Refer to the above screenshots for a more detailed look. 

Future in cryptocurrency?


With the apparent increase in the number of people recognizing cryptocurrencies, it is clear that the future will see similarly large investments. That said, it is always best to have the right perspective on the volatility and risks of cryptocurrency assets before investing. 



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