What is cryptocurrency? How cryptocurrency works? -Bloggernewstech

 Table of context

1. What is cryptocurrency

2. How does cryptocurrency works

3. Advantages and disadvantages of cryptocurrency

4. How to buy cryptocurrency 


What is cryptocurrency?


 Cryptocurrency is a digital currency, used as an alternative form of payment using the blockchain technology.


  Cryptocurrency or crypto is a digital asset that can be bought, sold or traded securely.



  Unlike fiat currencies (Dollar, Euro etc) crypto can't be controlled by any government or central bank. For example, Bitcoin -- the most popular and first cryptocurrency ever, can be bought from different crypto markets i.e Binance, Coinbase etc. The government can't stop all these markets from trading cryptocurrency. Any can buy Bitcoin or whatever coin they want to buy from these markets and then they can use it like real money to purchase anything.

What is NFT?

   Now you might be thinking why someone will spend his real money to buy these digital currencies if it does the same thing which can be done by real money. Here is the reason, cryptocurrency is the future. We can not only use cryptocurrency to purchase products online but as well offline. Cryptocurrency is gradually displacing fiat currencies. Many companies are already accepting cash in cryptocurrency. Not only companies but many local shops have started to accept cryptocurrency. 


  This is not the only usage of cryptocurrency. Cryptocurrency can be used in trading and for fast and cheap sending of money. We can avoid to pay tone of taxes to government using cryptocurrency as it only cost 0.1 USD transaction fee on any amount of money send.


How does cryptocurrency works


  Cryptocurrency works through a technology known as blockchain. Blockchain technology keeps track of every single transaction made by anyone, it keeps track of who owns what.


  Millions of giant computers are operated across the world to keep record of every single transaction made in crypto. All these computers are connected to each other so, no one can manipulate the data.


   Cryptocurrency like Bitcoin are created through a process called mining. All computers which are used to keep records of transaction are rewarded through unit of cryptocurrency after storing the transaction data. This process is known as mining.


Advantages and disadvantages of cryptocurrency


   As everything has some disadvantages along with it's benefits. Here are some  pros and cons of cryptocurrency.


Advantages of cryptocurrency:


    • Cryptocurrency uses blockchain technology which enables people to directly transfer money from one person to another without the involvement of any third party i.e banks.


   • Crypto can't be controlled by someone unlike the fiat currencies which are being controlled by the government.


   • Easy to use, money can be transferred by a single click on your phone or computer.



    • Very low transaction fee. It doesn't cost even a single dollar to transfer millions of money.


     • The transactions are very fast. It only takes a second to send money to any part of the world.


     • Cryptocurrency is secure and private. No one can track or steal the money you have in your account.



Disadvantages of cryptocurrency



      • Cryptocurrency can be used for illegal transaction. Cryptocurrency is used to buy drags and weapons in the darks web. As the transactions are highly secure and private governments can't even know about these transactions.

      Some people also use cryptocurrency to hide their black money.



      • Once you loose your money then no one can recover you that money. There are different wallets in which cryptocurrency can be stored, each wallet has a unique private code. If the user loses that private key than no can recover the money from that wallet even the company which owns the wallet can't recover it.

 

       • The value of cryptocurrency changes significantly. Their price may increase or decrease so people don't feel it safe to convert their real money to cryptocurrency.


      • Although the security of cryptocurrency is very high and their is still chance of being hacked by hackers. 


What is NFT?

How to buy cryptocurrency



     After keeping in mind all the advantages and disadvantages of cryptocurrency if you want to buy it. Here are some simple steps to buy cryptocurrency.


   1. Choose a market to buy cryptocurrency. There are so many markets out there to buy cryptocurrency like Binance, Coinbase etc. Choose one them.




   2. Create your account on that market and verify your account.

   

    3. After verification deposit real money to the market.


    4. choose a cryptocurrency coin to buy because there are millions of coins like Bitcoin, Ethereum,BNB etc 


    5. After selecting a coin place an order to buy that coin.



     After buying crypto you should not store your money on the exchange it is easy for hackers to hack your money. Instead store your assets on wallet.



What is blockchain technology read here

Log into binance here

Log into Coinbase here



What is NFT?







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