In this post, we are going to learn about cryptocurrency in detail. Till now there are more than 8000+ cryptocurrencies available in the market. Some of the popular currencies are Bitcoin, Ethereum, Ripple, Cardano, etc. We know that currencies like Euro, dollar, and Rupee will be in control of government i.e Centralized whereas these cryptocurrencies are decentralized which means there will no control for government authorities and look after this currency. Cryptocurrencies use the technology called Blockchain which is a very secure thing.
Cryptocurrency is the digital currency that is meant to be a medium of exchange that depends on cryptography during transactions. Crypto in cryptocurrency means a method of using encryption and decryption to secure the transfer of communication. As we know Cryptocurrency was started in the year 2009. Cryptocurrency is a virtual currency and the first crypto is bitcoin which became most popular in recent times.
Cryptocurrency is not like our normal money
that can't be kept in pockets and that can't store in banks too. They will
be stored in a digital wallet in online. Recently, this digital currency
became famous because big companies are buying and investing in
these currencies. This crypto will not follow the traditional banking system for transferring as
it transfers from one system wallet to another wallet.
INVESTMENT AND TRADING:
Crypto investments involve potential high risk. In march 2020 Indian supreme court said trading and investment are legal. To invest and trade there are some trading platforms in which you can buy and sell various cryptocurrencies. If you want to invest in crypto you should be able to take risks.
Invest money that you are able to lose that doesn't affect your financial matters. Don't treat this as a quick rich scheme there is the possibility of getting rich and also losing all your money. There is also another risk you consider while investing in crypto that your country may ban cryptocurrency at any time.
If you are willing to take risks and ready to invest in crypto start with small amounts, don't follow and get foolish by any tweets. Invest in good projects by doing research and read the whitepapers of every project.
Companies like Micro Strategy, Tesla, square, Marathon digital holdings, Coinbase invested in Cryptocurrencies mostly are holding bitcoin. If the trend goes in this way then many other companies will invest in cryptocurrency
LEGAL OR ILLEGAL?
There are different types of regulations that are implemented by various country governments. Some countries banned this crypto as illegal and other countries allowing it as legal. This depends entirely on the situation of the existing country.
Countries like the United Nations, Australia, Canada, European Union, India made it legal, and those countries allowing people to trade and invest in cryptocurrency. China, Russia, Vietnam, Bolivia, Columbia not allowing cryptocurrencies.
PROS IN CRYPTO:
There will be no transaction cost for transferring this currency to other wallets. You will get 24/7 access to this virtual currency. There will be no limits on purchases and withdrawals and also freedom for anyone to use. International transactions are very faster. Allies see digital forms of money like Bitcoin as the cash of things to come and are hustling to get them now, apparently before they become more important.
A few allies like the way that digital currency eliminates national banks from dealing with cash supply since over the long haul these banks will in general diminish the worth of cash by means of swelling. Different allies like the innovation behind cryptography forms of currency, the blockchain, in the light its a decentralized handling and recording framework.
CONS IN CRYPTO:
There will be issues regarding Scalability, Cybersecurity breaches, regulations, and price volatility with a lack of inherent value. This can be used for illegal transactions. If you lose data this may lead to financial loss. There will be no refund policy if you send currency to the wrong address since there will be no authority looking after it. The mining of cryptocurrency also affects the environment.
MY OPINION:
According to my opinion, cryptocurrency is the future. It has huge potential to become the next big thing in the market. If people want privacy and decentralization then they should move to digital currency in the future. Some countries banned it because they thought some illegal activities are happening with it. If a person wants to do an illegal activity he/she will do it in any way.
If any government allows crypto the upcoming technology, it will help in creating new companies, employment. If Bitcoin and all other altcoins continue to rise then it will be a great opportunity for the government to generate wealth. Finally, keeping the future in mind crypto should be empowered with a legitimate tax framework and ideal regulations for investing or trading and also for adopting it.
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