Introduction to Cryptocurrency
A cryptocurrency is an online currency that is used for goods and services. In other words, it is a currency that is virtual and does not exist physically. It is a peer-to-peer(p2p) system that enables its users to send and receive payments for the online transaction. It is considered a digital asset that does not exist like paper money. These cryptocurrencies work under the decentralized network, which is built on blockchain technology. It does not rely on any banking sector to verify its transactions. No government or any person controls these cryptocurrencies. You can check the link here bitcoin for trading guide in cryptocurrency.
Today, Different cryptocurrencies are available. These cryptocurrencies are kept in a digital wallet of a user for an online exchange or transaction. The network used for cryptocurrency is shared over a vast number of computers. Bitcoin was released in 2009 as the first cryptocurrency under the blockchain network. Blockchain networks got criticized due to their virtual nature, as people believe they will destroy many industries.
When it was released, it was offered for free without any price as at that time, cryptocurrency was a relatively new term, so people were reluctant to pay for it. Now a single bitcoin costs around $8k. There was even a time when it was at its highest price last year with a value of $10k. Now people are interested in its purchasing and buying in its decimal value. The lowest decimal value of bitcoin is Satoshi. Those who buy it in its early years of release got too much profit, while those who thought it was a scam and not worth a single penny are repented.
After Bitcoin huge success, many other cryptocurrencies were launched successfully named:
According to recent research on cryptocurrency, the total value of all the existing cryptocurrencies is over $1.8 trillion, whERE bitcoin alone has 46.5% of the aggregate value of all the cryptocurrencies.
Pros and Cons of Having Cryptocurrencies
There are multiple benefits of cryptocurrencies. It removes the interference of the third party in a transaction between two persons, whether it is a bank or any credit card company. These transactions incur a nominal fee for completing it, allowing users to avoid the high cost charged by the bank. Due to decentralized networks like bitcoin, payment fraud cannot be possible, enabling users to spend their money buying these cryptocurrencies.
The other main advantage of cryptocurrency is that it can make you rich and give you high profit if you know how to trade in cryptocurrency. These cryptocurrencies are protected from inflation and cannot lose their value even when their demand increases; their value also increases. These cryptocurrencies can be bought using many physical currencies like US dollars, European euro, British pounds, etc. The most used application for buying cryptocurrencies is the Binance app.
Now comes to its disadvantages which is its high volatility. This is a 24 hours market, so inexperienced and new users often lose their entire investment. Due to its anonymous nature, it seems convenient for illegal or unlawful activities. In short, cryptocurrencies have both advantages and disadvantages like any other thing.