Cryptocurrency Explained:-

Here You will going to Know about Cryptocurrency like what is cryptocurrency?, pros and cons of cryptocurrency, How it works by using blockchain technology and many more.

What is Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography. It is a form of payment that can be exchanged online for Goods and Services. As we know this works on the basis of cryptography which makes it nearly impossible to counterfeit.

Cryptocurrencies work using a Technology called Blockchain.

What is Blockchain Technology?

Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this Technology is its security.

  • Worlds First cryptocurrency is Bitcoin. It was founded in 2009 by a programmer named Satoshi Nakamoto.
Bitcoin emerged in 2009 just after Occupy Wall Street accused big banks of misusing borrowers money, duping clients and charging boggling Fees. Bitcoin Pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and make transactions transparent, to hack corruption and cut fees. They created a Decentralized system, where you could control your funds and know what was going on.

From Now onwards i will use bitcoin instead of cryptocurrency so you will understand the whole concept very easily. And after all Bitcoin is a type of cryptocurrency.

How Do you Buy a Cryptocurrency?

1.Install a virtual Wallet

Before a Bitcoin can be purchased, a user must install a virtual Wallet onto a personal computer or mobile device. Virtual Wallet which is similar to personal finance software. It will track your all transactions and show your bitcoin balance.

2.Real Money deposit through an online payment company

To Buy a Bitcoin, real money must either be deposited through an online payment company or transferred directly from a bank account into an account on a third-party website that connects bitcoin buyers and sellers.

3.Once Funds are available a buyer can place an order

Once the Funds are available, a buyer can place an order for a bitcoin, similar to trading stocks, through an exchange such as Bitstamp.

4.It can also be purchased from 3rd parties

Bitcoins can also be purchased from third parties such as Binance, BitInstant, which sends the coins directly into the virtual Wallet.

Bitcoin Transactional properties

  • Irreversible:-After confirmation, a transaction can't be reversed. By nobody. If you send Money, you send it. No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.
  • Permissionless:-You don't have to ask anybody to use cryptocurrency. There is no any intermediaries between you and crypto seller to restrict you from buying cryptocurrency. It's just a software that everybody can download for free. After you installed it, you can receive and send bitcoins or other cryptocurrencies.
  • Secure:-Bitcoins funds are locked in a public key Cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic  of big numbers makes it impossible to break this scheme.
  • Pseudonymous:-Neither transactions or accounts are connected to real world identities. You receive Bitcoins on addresses, which are randomly seeming chains of around 30 characters. And it is not necessary possible to connect the real world identity of users with those addresses.

How does Bitcoin work?

Bitcoin works on a vast public ledger, also called a Blockchain, where all confirmed transactions are included as so-called "Blocks." As each blocks enters the system, it is broadcast to the peer-to-peer computer network of users for validation. In this way, all users are aware of each transaction carried out in the blockchain technology. Which prevents stealing  and tempering, where someone spends the same currency twice. 
The Process also helps blockchain users trust the system.

  • The Total Number of Bitcoin that can ever be mined is limited to around 21 Million.
  • Bitcoins are mathematically generated as the computers in this network execute difficult number crunching tasks. A procedure called Bitcoin Mining. The mathematics of the bitcoin system were set up so that it becomes progressively more difficult to mine.

Advantages of Bitcoin/Cryptocurrency

  • Bitcoin is decentralized
  • Bitcoin is free from Govt. there is no interference and manipulation
  • Bitcoin is Transparent(You know what is happening with your money.)
  • Bitcoin cannot be forged.

Disadvantages of Bitcoin/Cryptocurrency

  • Bitcoin is highly volatile.(Its price is always going up and down)
  • Bitcoin wallet can be lost.
  • Bitcoin is unregulated.
  • It supports Black Market activity Because of decentralized form.
  • Threats of Online Hacking.

 I Hope that you will get to know about Cryptocurrency in a easy way.

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