What is Cryptocurrency?

 What is cryptocurrency and how to invest in it

In today's time, as the awareness of investment is increasing among people, people are looking for different ways to invest. In such a situation, a new investment method is coming in front of us. People's interest towards which is increasing day by day. And there is also a big reason to grow which we will know further in this article. After all, let us see what is Cryptocurrency and how does it work.

If seen, Cryptocurrency is just the beginning, and if at this time you get the right knowledge of Cryptocurrency and start investing by becoming a good Investing Strategy, then your future can be very good. For your information, let me tell you that if you had invested 100 rupees in a Crypto 1 year ago, then today your 100 rupees would have become more than 1 crore. Do not be shocked because this is the truth about which you will know in this article. I know you are getting excited to know what is cryptocurrency and how to invest in it. So let's know.

What is Cryptocurrency

Cryptocurrency is a kind of digital currency and in 2009, Bitcoin Crypto was created for the first time. You do not have cryptocurrency like real coins or money but it is in your Digital Wallets. It is also called Digital Assets. It is made on Blockchain Technology.

Its value keeps increasing and decreasing depending on many factors. I know you still do not understand at all. Instead of this, now even more questions must have come in your mind that what is this digital currency, digital assets and blockchain technology.

The way we look at our money, whether it is dollar or rupee, it is a kind of currency, you would also know this. Similarly, cryptocurrency is also a kind of currency, but digital means it is not in your hand like rupee or dollar because it is online currency which appears in your account and you can use it.

In a way it is your money but the digital one which will be visible in your account will be visible in your Digital Wallets, Crypto Exchanges and you can also buy goods from it wherever Cryptocurrency is accepted. It just won't be in your hands. It is a kind of currency but its price keeps increasing and decreasing, so it is also a kind of Assets in which we can earn good money by investing.

So now you must have understood to some extent what is Cryptocurrency and why it is called Digital Currency or Digital Assets. I know you may not have fully understood right now but you will by the end of this article.

Now let us understand a little about Blockchain, actually Blockchain is a kind of technology which works like Ledger book. As you must have seen, all the goods bought and sold at the shop are written in an account. In the same way transactions are recorded in Blockchain.

Now let me explain with an example what is Cryptocurrency, like suppose I created a Crypto Coin and launched it in the market. When I will launch it, its price will be fixed which depends on many factors like its Crypto Liquidity, Supply and many more factors, at the moment you understand these are some technical terms, that is why it is not coming. That's why you should understand that I launched at a price.

As soon as I launch, actually people who want to buy it will buy it. And the more people buy it, its price goes on increasing. And if we have to buy something from it, then we will transfer the Crypto which is in our account to another's account if it accepts Crypto as a payment method.

Now you must have understood to a great extent what is Cryptocurrency. a digital currency. Now let's understand further how cryptocurrency works and how to use it.

How does cryptocurrency work?

Cryptocurrency is built on the blockchain through Smart Contract. A record of each of its transactions is kept in the blockchain. Actually we can buy and sell Cryptocurrency very easily. There are many cryptocurrency exchanges for this, with the help of which we can easily do Crypto Trading.

I will not take you too much technical because you will not understand technical words much, for that I will tell you a separate Cryptocurrency Terms article.

Let me tell you in simple language how cryptocurrency works. Actually, whenever Cryptocurrency is listed on an exchange, Liquidity is added by which we can buy and sell that Crypto Properly and Smoothly. Cryptocurrency exchange is the platform from where we buy and sell it.

Now the second thing is that the more people buy a cryptocurrency, the more the value of that crypto increases. Meaning, the more the Buying Pressure of a Crypto, the more its value increases. And when more people sell any Crypto, then its value starts decreasing. That is why you must have seen that when some kind of bad news comes in the market, the value of cryptocurrency starts decreasing and the market starts going down.

In this way, as the holders of any Crypto grow and there is more investment and when big investors invest in any Cryptocurrency, then its market capital increases. And in this way, the higher the market value of Cryptocurrency, the better the ranking of Best Crypto Currency. For example, the market capital of Bitcoin is the highest in today's time.

How many types of cryptocurrency are there

By the way, there are many Crypto, there are no types of it. In the last 1-2 years, more than 1000 new cryptos have come in the market. Bitcoin was first launched in 2009, which cost only 6 paise and in today's time, the value of one bitcoin is around 40 lakhs.

It means that if you had bought even 1 rupee in 2009, you would have got at least 15 bitcoins, which in today's time would have cost more than 6-7 crores. Isn't it surprising!!! No matter how 1 rupee becomes crores of rupees, but it is not so easy in the cryptocurrency market. And why it is not easy, you will understand in cryptocurrency value. So let's know.

Cryptocurrency Value

There is a lot of ups and downs in cryptocurrency. And it can also happen that your money becomes zero, the market is very volatile.

If you invest 1 lakh rupees in any cryptocurrency today, then within 1 month its value may remain only 10 thousand rupees or it may also happen that it becomes 1 lakh rupees and remains 1 lakh only. Meaning the Crypto market is so volatile that there is a lot of risk in it.

And in this way its value also keeps on going up and down according to the market. Fluctuation keeps on happening.

Benefits of Investing in Cryptocurrency

• Investing in cryptocurrency has its advantages and disadvantages.
• In cryptocurrency, your money can grow very quickly.
• Investing in cryptocurrency is very easy.
• You can invest money in cryptocurrency whenever you want, you can withdraw money whenever you want.
• There are many User Friendly Exchanges to invest in Cryptocurrency.
• Apart from this, there are many advantages of investing in cryptocurrency. At the moment we see some disadvantages also.

Disadvantages of Investing in Cryptocurrency

• There is a lot of risk in cryptocurrency.
• Cryptocurrency is not controlled by any bank or government like the currency of a country is done.
• Scam can also happen with you in cryptocurrency.
• Money should never be invested in cryptocurrency without research.
• In any country, unless the government declares Crypto legal, there is a danger of banning it.

How to invest in Cryptocurrency

By now you must have understood a lot about Cryptocurrency. And I know you must be thinking that start your Crypto Investment Journey by investing a little bit. But for this it is very important to know how to invest in cryptocurrency, so let's know this too.

There are many platforms to invest in cryptocurrency called cryptocurrency exchange. Through this we can also buy and sell Crypto. It is very easy to use them.

You just have to do KYC in Exchanges like you create an account on any App, just you have to do KYC by creating an account in which National ID Card is installed.

Read Also -  What is bitcoin and how to invest in it 

After completing KYC, you can easily buy and sell any Crypto. There are many good Exchanges for this, about which I will tell you, if you do KYC on those exchanges, then you will get some Crypto Coin for free in the way mentioned.

1. CoinDCX - You can download this application from the App store. Or you can install CoinDCX by directly downloading it from this link. And then you will have to do KYC, as soon as you make the first investment, you will get 300 rupees for free Crypto.

2. Wazirx – This is also an Indian Crypto exchange which you can download from Playstore or Wazirx App from this link.

3. Huobiglobal - This is also a great exchange from where we can invest in Crypto.

Apart from this, you can use many great exchanges like Binance, Suncrypto, OKEx and many more.

You can start your Crypto Journey by downloading these Exchanges and doing KYC.

Top 10 Cryptocurrency List

Bitcoin

cardano

Solana

palkadot

Ethereum

Binance (BNB)

Ripple

Terra

Dogecoin

Shibainu