What is Cryptocurrency and how does it work?
Cryptocurrency is a decentralized digital or virtual currency that is secured by cryptography that's based on blockchain technology.
A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. Cryptocurrency enables secure transactions without the use of third-party intermediaries. Cryptocurrency is a digital payment system that didn't connect with banks to verify each transaction it's a peer-to-peer system that can enable anyone everywhere to send and receive payments. Cryptocurrency is stored in digital wallets.
The advantages of cryptocurrencies are faster and cheaper transfer and do not collapse at a single point of failure. A disadvantage of cryptocurrencies their value (Price) is volatility, it's the consumption of high energy when mining activities and criminal activities.
How does cryptocurrency work?
Cryptocurrency is run on Blockchain technology, to make a transaction you need to exchange currency with a peer using a digital cryptocurrency wallet. that allow transferring funds from one account to another account. you need a private key, which is one type of password. with this key, you can transfer funds from one account to another account
Types of Cryptocurrency
There are thousands of cryptocurrencies are available worldwide, As we know Bitcoin is the most popular and valuable cryptocurrency.
In 2008 Satoshi Nakamoto that has been established as the world's first and largest cryptocurrency the name is Bitcoin, Satoshi Nakamoto was one of first mined the first blockchain of Bitcoin and published the whitepaper for the BItcoin.
Another few popular Cryptocurrencies are Ethereum, Tether, BNB, USD Coin, XRP, Solana, etc.
How to Use Cryptocurrency?
Cryptocurrency is the sense you can make purchases and treat them as an investment.
With cryptocurrency, you can use it to purchase buy goods online. Crypto exchanges can be made for fiat or national currencies like USD and can be traded for different digital currencies.
Also, you can invest in cryptocurrency by buying a given amount at one value and selling when the price is increases
How to buy cryptocurrency
You can buy cryptocurrency with a traditional broker or dedicated cryptocurrency exchange.
The brokers who offer to buy and sell cryptocurrency, offering easy to use interfaces that interact with exchanges for you. Few brokers charge higher fees than exchanges. Robinhood and Sofi are the most famous crypto brokers. you have to be careful with brokers because you may face restrictions on moving your assets holdings off the platform. with brokers service, you cannot transfer your crypto holding out of your account.
A cryptocurrency exchange is a platform where buyers and sellers connect to trade cryptocurrencies. Exchanges relatively low fees, but a disadvantage is having more complex interfaces with multiple trade types and Pro charts. There are many exchanges are available worldwide to buy different types of cryptocurrencies Some popular crypto exchanges are Binance, WazirX, Coinswitch, CoinDCX, etc.