Cryptocurrency

"Cryptocurrency" this word must have been heard somewhere in our daily life. When we heard this word  a picture comes to our mind which is given below 👇

In this blog, I covered some questions to understand better that "What is Cryptocurrency".

• What Is Cryptocurrency?

• Why Is It Called Cryptocurrency? 

• Who Invented Cryptocurrency?

• On Which Technology Cryptocurrency Works? 

• Is Cryptocurrency Secure Or Not?

• How Many Cryptocurrencies In The World?

• Which Are Top 5  Cryptocurrencies?

What Is Cryptocurrency? 

Cryptocurrency is not a coin or paper note but it is a digital or virtual currency. The main motto of a cryptocurrency is, not controlled by any central authority or any bank. Cryptocurrency is a threat to the current bank system.

Why Is It Called Cryptocurrency? 

The word Cryptocurrency is derived from 'Cryptography' and 'Currency'. This is simply because Cryptocurrency makes extensive use of Cryptographic techniques to secure transactions between two users. 

Who Invented Cryptocurrency? 

There have been many tries to create Cryptocurrency in the 1990s. Although many attempts were made to find Cryptocurrency, the first and most successful attempt was made in 2009. The founder of Cryptocurrency is" SATOSHI NAKAMOTO". The word “Cryptocurrency” is derived from the encryption methods.

On Which Technology Cryptocurrency Works? 

Basically, Cryptocurrency works on blockchain technology. Cryptocurrencies influence  blockchain technology to gain decentralization, transparency, and immutability. Blockchain technology is a very safe and fast comparatively other technology. It transfers Cryptocurrency to any person in the world in very few seconds. 
So, many governments of different countries try to learn about blockchain technology and implement this technology to secure their confidential data.

Is Cryptocurrency Secure Or Not?

Mostly this question is frequently asked by many people, in the answer to this question is "Yes". Yes, Cryptocurrency is very secure and safe. As we know it works on blockchain technology it is very safe. Also, it used SHA-256,  a cryptographic hash function, 

How Many Cryptocurrencies In The World?

There are thousands of Cryptocurrencies, more than 5,000 according to major listing websites, the majority of them aren’t used and are considered irrelevant. The crypto market is mostly top-heavy, with the top 10 cryptocurrencies making up almost 90% of the total market capitalization, despite a large number of cryptocurrencies out there.

Which Are Top 5  Cryptocurrencies?

Here I ranked some Cryptocurrencies by its market's capitalization. 

• Bitcoin (BTC) $128bn.

• Ethereum (ETH) $19.4bn.

• XRP (XRP) $8.22bn.

• Tether (USDT) $6.4bn.

• Bitcoin Cash (BCH) $4.1bn

1 Bitcoin(BTC). 

In August 2008, the first domain of Cryptocurrency which name bitcoin.org was registered. On October 31st, 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System” which is the first paper of cryptocurrency . Bitcoin was invented by SATOSHI NAKAMOTO. Linked with this process is the stipulation set forth by the source code of bitcoin that, like gold, it must have a limited and finite supply. In fact, there will be only 21 million bitcoins ever produced, and these are introduced to the bitcoin supply at a fixed rate of one block every ten minutes, on average.

2 Ethereum (ETH).

Ethereum was launched by Vitalik Buterin on July 30th, 2015. He was a great researcher and programmer. Also he working on Bitcoin Magazine, and he initially wrote a white paper in 2013 describing Ethereum. Buterin had implied that Bitcoin needed a scripting language. He decided to develop a new platform with a more common scripting language when he couldn’t get buy-in to his proposal.

3 XRP (XRP)

XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger an open-source, permissionless, and decentralized blockchain technology that can settle transactions in 3-5 seconds only.  XRP can be sent directly without needing a central intermediary, making it a convenient instrument in spanning two different currencies quickly and efficiently.

4 Tether (USDT)

Tether was based on the Bitcoin blockchain.“Tether converts cash into digital currency, the value of the single coin represents the price of national currencies”. So, the value is meant to mirror that of the US dollar and each unit of Tether is backed by $1 held in reserve. One of the main uses of Tether is to facilitate trading between cryptocurrencies with a rate fixed to the US$ allowing traders to take advantage of trading opportunities.

5 Bitcoin Cash (BCH) 

Bitcoin Cash was born out of the idea of making Bitcoin more practical for small, daily payments. In May 2017, Bitcoin payments took about four days unless a fee was paid, which was proportionately too large for very small transactions. A change to the code was applied and Bitcoin Cash was born on 1st August 2017.

Best Cryptocurrency Exchanges in India

Here is the list of the some most popular cryptocurrency exchanges from where you can buy cryptocurrencies and do trading. I have made quick bullet points so you don’t have to read everything to find what you need to know about them. Also marked them as Local/Global so that you can know better which one accepts INR and which one doesn’t.

Binance (Global Exchange)

They are one of the most popular exchanges in the world and also renowned in the crypto world for their services. They own the Indian Exchange WazirX. They have their own coin Binance(BNB) for trading on their platform at discounted fees. They are one of the most fully-featured exchanges that you can find.

• Currencies: Almost all the coins

• Trading Fees: 0.1%(Lowest in India)

• P2P: Yes

• KYC verification: Required

• Method of Purchase: Crypto to Crypto

BitBNS (Local Exchange)

Another popular Local exchange with around 85 coins. It is also very innovative which provides Systematic investment plan(SIP) equivalent using Bitcoins. They don’t have a peer to peer trading platform.

• Currencies: around 85

• Trading Fees: flat 0.25%

• P2P: No

• KYC verification: Required

• Method of Purchase: Bank Transfer

UnoCoin (Local Exchange)

They are one of the oldest Exchanges in India and also opened the first Bitcoin ATM in India which was seized just after 1 week of installation.

• Currencies: less than 30

• Trading Fees: flat 0.4%

• P2P: No

• KYC verification: Required

• Method of Purchase: Bank Transfer

Wazirx (Local Exchange)

Wazirx Best in India with the most number of trading coins offered in India. Also they have their own coin WazirX( WRX) for trading on their platform at discounted fees. They were acquired by Binance which is already one of the most popular Global exchanges. They are the only ones currently to Provide P2P services along with the exchange platform in India.

• Currencies: around 120

• Trading Fees: 0.1–0.2%(Lowest in India)

• P2P: Yes

• KYC verification: Required

• Method of Purchase: Bank Transfer