Cryptocurrency is a digital currency which uses the cryptography technology to secure digital transactions independent of a centralized government or bank. There is no physical currency like coins and notes when it comes to cryptocurrency. This is online currency which is tracked, verified and documented. Cryptocurrency, like bitcoins, are pseudo-anonymous and this form of currency exchange is on a peer-to-peer network with each cryptocurrency connected to a wallet account with balance and private key. Currencies like bitcoin are mostly anonymous but they can be accessed by hackers and government agencies. Cryptocurrency uses the cryptography technology which is the art of writing and solving codes. Upon writing the JEE Main exam and the curriculum for becoming an engineer includes coding which can lead to a career in cryptography and cryptocurrency. As cryptocurrency is the most talked about currency which may improve the global finance toward a future with technology in currency.
This currency is similar to the USD, Euro and AUD in its function to exchange for commodities but the technology behind cryptocurrency is futuristic and new. This is the reason behind the confusion of what cryptocurrency like bitcoins, really are, how they work and how to invest in them? The first question that needs to be answered is ‘what is cryptocurrency?’. In simple words, cryptocurrency is digital money is not centralized by a bank or a government with each transaction being recorded. Cryptocurrency transactions are not immediate as it takes times to verify the transaction which makes the exchange more safe and efficient. This also avoids a major problem that is spending a certain amount of currency because it is yet to be verified. This happens in regular banking when a certain amount is pending for transaction and it is used by the user again leading to credit amount or a misrepresentation of the balance. For instance, you pay for your UPTU 2018 form exam using your credit card that needs to be verified by the bank but when it is pending there is a slight misrepresentation in numbers.
There are a lot of cryptocurrencies with a high revenue market. Listed below are a few of the popular ones:
There are many other cryptocurrencies in the world. Further on, in reference to cryptocurrencies, we will specifically speak about bitcoins.
How to invest in Bitcoins? Bitcoins can be bought like any commodity with cash, credit card or debit card. First, a bitcoin wallet needs to be established which will be the wallet ID for all transactions. This is like an account to hold your bitcoins. Bitcoins can be stored digitally on a computer, online or offline in a vault. Each storage method has its own pros and cons. But storing online or on a computer may not be that safe as it is stored in a destructible ecosystem. This can also be easily hacked by computer and online hackers. The safest way of storing bitcoins is offline in a vault. The online and computer storage is suitable for users who use bitcoins on a regular basis, but the vault is safe for people who have bitcoins for the sake investments. Another way bitcoins can be acquired is by bitcoin mining which is done online where users mine with a software that solves mathematical problems and as result of this a certain number of bitcoins is issued but there is no lack of the number of bitcoins available in the online market. If you are investing bitcoins, do enough research and invest only when you are comfortable with the idea of bitcoins.