What is cryptocurrency - Things you need to know about cryptocurrency

What is cryptocurrency?

A cryptocurrency is a digital or virtual currency which is secured by *cryptography. On behalf on a network that is distributed across a large number of computers.

*Cryptography: Cryptography, is the practice or study of techniques for secure communication in the presence of adversarial behavior. With encryption.

In simple words, a cryptocurrency is a digital currency, which is an alternative form of payment created using encrypted algorithm, which is done through computers.

These digital currencies are not controlled or relied on any of the particular central authorities. Which means these currencies are not authorised by any particular Governments or banks, to maintain uphold it.

ADVANTAGES OF CRYPTOCURRENCY:

There are so many advantages are there, in that major advantages are as below:

• Global currency:

A cryptocurrency is considered as a global currency, the reason being, it has value, importance and acceptance throughout the world. However it is operated on the internet, so it becomes easy to everybody to buy, sell and trade on the digital assets with no hurdle and intermediaries like banks. Global accessibility and with no geographical hurdle cryptocurrencies are often considered as a global currency.

These are the reasons that made to call cryptos as a global currencies.

• Privacy:

Privacy in cryptocurrencies refers to the transactions and information which are related to transactions which made by the people are kept secret and confidential, and has no easy traceability by any individual.

These transactions are recorded on a public ledger which is called blockchain, but the identities is people those who are involved are kept secret. And also their identities are represented by unique addresses instead of their real names.

This is how these currencies are maintain privacy.

• Transactions beyond the borders:

Transactions beyond the borders in cryptocurrencies mean that you can send and receive these digital currencies (cryptocurrency) to and from anyone throughout the world without going over banks or any other intermediaries. It becomes possible because it use a technology named blockchain, which allows transactions to be recorded and verified by a network of computers without any central authority. This makes transactions faster and also less expensive compared to traditional methods.

This makes cryptocurrency borderless.

• Decentralisation:

There is huge difference between common money and crypto currency. Because these digital money are not rely on banks or any governments instead, they use a system called blockchain.

With the advantage of no involvement of banks while sending or receiving the money it becomes more secure and private. And the blockchain keeps transactions more safe and also keeps every track of the transactions made.

Disadvantage of cryptocurrency:

• Security risks:

Security risks while investing on cryptocurrency are not common, but though it contains certain amount of risks associated. Security is the basic need of daily life. Even though these digital currencies use blockchain and encryption there are a small amount of risks will be there.

• Dependency of technology:

Digital money or crypto currency are based or depending on the technology. If any issues appears in the servers, then whole system will suffer and affects customers satisfaction. And moreover the security risk come to the mind of customers or people who are surfing through.

• Lack of understanding:

This is major disadvantage of cryptocurrency. Because the system of these digital currencies are quite difficult to understand and how it works. Many people think this is complicated and afraid of security. These primary function like blockchain, encryption, digital money and other technical aspects of these are not common and little tough to understand. so this point make a big sense when it comes to cryptocurrency.

• Lack of customer support:

Yes!!.. As you all know that these digital currencies are not rely upon any particular Governments or banks. So this is common understanding that there will not be any customer support. If support is not available then customers find more difficulties and cannot get right support and solutions. This may affect the customer satisfaction.

Some of the examples of cryptocurrency and their current price 2023 May:

• Bitcoin                   22,61,592.62 INR
• Ethereum              1,53,470.50 INR
• XRP                         38.37 INR
• Polygon                  72.22 INR
• Shiba Inu               0.000733 INR
• Monero                  12,628.80 INR
• Solana                    1,622.73 INR
• Stellar                    7.33 INR