What is Cryptocurrency | All About Cryptocurrency in India [2022]

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What Is Cryptocurrency?

What Is Cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution controlled fiat currencies. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.

History of Cryptocurrency?

Bitcoin and Cryptocurrency were both introduced in 2009 by an unknown person or group of people under the name Satoshi Nakamoto. There is no central authority that governs blockchain activities, but instead a network of computers spread across the globe collectively maintain a copy of all blocks on the chain, ensuring that everyone can verify any information entered into it. The decentralized nature of blockchains makes them difficult to censor or manipulate - something which may have played a role in the popularity of cryptocurrencies. Often mistakenly called "coins", the trades featured in most exchanges are actually more like bets - with one or a collection of wallets, each with their own unique address, 'staking' themselves to validating transactions and collecting revenue as they go. This creates an environment where participants have no liability towards any other user on the network assuming both parties accurately record blockchains correctly (especially when it comes time for transaction verification) while simultaneously earning a rewards for their contribution with each block that's validated.

What Is Blockchain?

A blockchain is a database with an underlying system of rules - as usually happens in such cases, the world's most popular one (currently Bitcoin) has been nicknamed "The Blockchain". Blockchains are distributed information management systems that permit parties to securely store and exchange their own data. Records can be distributed across multiple sites on different computers interconnected by various blockchains - similar to those discussed above for cryptocurrencies but often carrying only relatively small amounts of finance or even a single line of data. There are essentially two forms of blockchain networks - public and private , both operating outside a centralized authority, in the actual case Cryptocurrencies such as Ether (Ethereum's cryptocurrency), Bitcoin or Dash do indeed operate more like public blockchains while popular social media platforms such as Facebook utilizes only much smaller somewhat less secure "private" ones which aren't open to everyone yet likely most important users.

What Is Decentralization?

Cryptocurrencies are slightly more centralized than standard money, however they feature the unbreakable algorithm of encryption and database systems that, in some ways, make it similar to a private coin - secure but accessible only to certain people. In general cryptocurrencies like Bitcoin use algorithms which allow for decentralizing management across millions of computers using these same types of networks in order not to require an entity (like physical banks) who can retain control over your funds.

What is Cryptocurrency Mining?

Mining is the system by which new Bitcoins are released on a consistent basis. Bitcoin miners provide proof of work - computing power to ensure that newly issued blocks will be added in a secure way, as well verify transactions for users and place them into one block together after solving difficult mathematical problems against other computers participating in computation sorted out over time through market competition between various bitcoin mining companies . Some cryptocurrencies have monopolized this method like Ethereum with Casper which differs from Bitcoin in the way that contracts are run - claiming coins will only be released to entities whose operation can sustain their spending attempt, these types of currencies use mining as a software function. The difficulty (or stress) level for proof of work varies based on how many people try to put together blocks which is why it may take some time before each computational task has produced results.

How does Cryptocurrency Work?

Cryptocurrency works a little differently than traditional payment methods such as credit cards or bank transfers. Rather than relying on a trusted third party to process the transaction, cryptocurrency is digital and uses cryptography to secure exchanges between users. Once an exchange has been completed, the currency can be transferred directly from one user's account to another without going through a financial institution. Cryptocurrencies are not governed by governments or banks, so they cannot be blacklisted , frozen or seized. There is no bank risk, no credit card company to deny access (although there are some large exchanges that will freeze Bitcoin payments because they can't be settled in local fiat currency), and nobody has the right to refuse a transaction based on your identity rating, suitability as an investor or desire for privacy either before you make it or after the fact. These properties combine together to make cryptocurrency one of the safest payment mechanisms available today .

This is not financial advice – but with the security of cryptocurrency's distributed network, you'll never have to worry about sending funds or data again.

Is Cryptocurrency legal for trade in India?

The Reserve Bank of India (RBI) has issued circulars that prohibit their use as payment instruments and direct citizens not to participate in any kind of "virtual currency" exchange. In addition, it may also be illegal for Indian companies to start operations that deal with mining , transacting , exchanging or buying virtual currencies (such as Bitcoin) from other related parties. The RBI has asked banks to ensure that their customers adhere strictly with the ban on dealing in cryptocurrencies . 8. How big is India's bitcoin community? You can view a complete list of active Indian cryptocurrency users by clicking here , although most are fairly small scale or just opting out rather than trying to take advantage of this unique opportunity.

Which Cryptocurrencies are the most popular?

Bitcoin and Ethereum are the most popular cryptocurrencies, accounting for around 45% of global market share each as of February 2018. Ripple (XRP) is also becoming increasingly popular, with a market share of almost 10%.
Other popular cryptocurrencies include Bitcoin Cash, Litecoin, Cardano and Stellar.

Popular Cryptocurrency Exchange in India?

There are several popular cryptocurrency exchanges in India, although none of them offer a comprehensive range of services. Some of the more well-known exchanges include CoinSwitch Kuber, Zebpay , WazirX and CoinDCX.

Cryptocurrency exchange in India

The best cryptocurrency exchange in India is CoinSwitch Kuber. This exchange has gained popularity because of its excellent customer support and security features. Users can easily buy and sell popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash and Dash with INR using a credit or debit card. The fees are also very low for every transaction. This is one of the most secure exchanges in India. CoinSwitch Kuber is available on Android, iPhone and Windows phones through mPlay Store, with a wide range of features including fast transaction speeds for exchange between INR and various other cryptocurrencies (Bitcoin/Ethereum).

There are many platforms available in India which allows crypto trading, buying and selling of coins but I'm recommend you CoinSwitch Kuber App.

Amazing Features of the COINSWITCH KUBER APP

The CoinSwitch Kuber Bitcoin App is built for the use of Beginners as well as Experts for an easy crypto investment.
  • Get a simple and user-friendly user interface.
  • Users can buy, sell and exchange cryptocurrencies safely without compromising their privacy.
  • Stay updated and on top with crypto news & crypto prices on the app.
  • Buy and sell crypto from a variety of 100+ coins conveniently with India Rupees.
  • Deposit money in your CoinSwitch Kuber crypto wallet with multiple payment options like debit or credit cards, UPI, Bank transfer or net banking.
  • Get the best rate from widespread cryptocurrency exchanges, which have partnered with CoinSwitch Kuber.
  • Trade cryptocurrencies with INR with just a simple and quick KYC/AML procedure.
  • Track your order in real-time and keep track of your crypto wallet transactions.
  • Prompt and efficient customer support to help you with your needs.
  • Trade on the go with the app on your phone.

Future of Cryptocurrency in India

The cryptocurrency bill, which is to be introduced in the winter session of the Parliament is more inclined to ban all the private cryptocurrencies in India, There are some talks regarding some exceptions in ban, with some exceptions the government is trying treat crypto as an asset class not as a currency. The exceptions are intended to promote the underlying blockchain technology & its uses.

Cryptocurrency Pros and Cons

Everything come with its pros and cons cryptocurrency is no different in this matter, it has its pros and cons as well.

  • There is a high potential in return over your investment. It can give you back manifolds bac of what you have invested.
  • Since there is no third party involved in your transactions there is no possibility of fraud and scam in cryptocurrency. Everything is transparent.
  • Speed of transactions is very fast.
  • Since there is no govt or bank involved so inflation is nil.
  • Trading fee is very less.
  • No limit or capping over transactions, one can transfer any amount.
  • There is always a good chance of high potential loss. Every digital currency is not at the profit.
  • Loss of password means loss of account along with the coins.
  • Payments are not irreversible.
  • Cryptocurrencies are not accepted everywhere.

1 comment :

Round Pay said...

Excellent Post! Keep Posting in the future also.