Summary of Crypto Currency: It is actually a means of financial transactions. Just like the Indian Rupee and the US Dollar, the only difference is that it is virtual and not visible, nor can you touch it. That’s why it is also called digital currency.
Cryptocurrency remains the hottest issue of the present time. While its popularity has increased across the world, the number of people investing in it has also increased in India. However, keeping in mind the risk in this unregulated market, the Government of India and the RBI have made preparations to crack down on private digital currency and a bill related to it is to be introduced in the current winter session. Most of the people now have a desire to know about it, so let us tell you what is crypto currency and how it works.
What is Digital Currency?
Crypto currency is actually a means of financial transactions. Just like the Indian Rupee and the US Dollar, the only difference is that it is virtual and not visible, nor can you touch it. That’s why it is also called digital currency. Its entire business is done through online medium only. While there is an intermediary between the transactions of any country’s currency, such as the central bank in India, but the business of crypto has no intermediary and is conducted online by a network. This is the reason why it is known as unregulated market, which makes someone rich in an instant and throws them to the ground in a jiffy. But despite this ups and downs, the popularity about it is increasing.
Most popular digital currency bitcoin
Currently the world’s most valuable and most popular cryptocurrency is bitcoin. After this, if we talk about the second favorite cryptocurrency, then the name comes of Ethereum. On the other hand, talking about the top 10 digital currencies, these include Polkadot, Tether, Litecoin, Dodgecoin and others. Initially, bitcoin dominated the crypto market, but over time this market grew and thousands of digital currencies came into play. Today the scope of business of crypto has spread almost to most of the countries of the world.
Operated by computer system
Simply put, crypto currency is a type of digital cash system, which is linked to a personal computer chain and is built on computer algorithms. There is no control of any country or government on this. Its popularity is increasing in such a way that many countries have legalized it. Preparations have also begun in El Salvador to build a digital currency-focused bitcoin city.
Used through blockchain
The system used to transact cryptocurrencies is called blockchain. These digital currencies are encrypted (coded). It is controlled through a computer network. In this, every transaction is verified by digital signature. Its record is controlled with the help of cryptography. All this work is done through computer network. When any transaction takes place in crypto currency, its information is recorded in the blockchain, that is, it is kept in a block.
This is how crypto currency is bought
There are two ways to buy crypto currency, but today the easiest and most popular way is to buy them through a crypto exchange. There are hundreds of crypto currency exchanges operating around the world. If we talk about India, there are many exchanges operating here including WazirX, Zebpay, CoinSwitch Kuber, Coin DCX Go. In addition, there are international platforms such as Coinbase and Binance, where digital currencies from around the world can be purchased, including bitcoin, ethereum, tether and dodgecoin.
Crypto currency exchanges open 24 hours a day
It is quite easy to buy and sell bitcoin and other cryptocurrencies in the country. The most important thing is that all these crypto exchanges are open round the clock for purchase. The process of buying and selling crypto currency through them is also very easy. You need to register on one of the exchanges for crypto trading and investing in Rupee. For this, after signing up on the site of the exchange, after completing your KYC process, money is transferred to the wallet and then these digital currencies can be purchased.
Preparations to introduce crypto currency bill
Significantly, in India too, the number of people investing in crypto is continuously increasing. According to a report, there are about 15 million (15 million) active users in India who are registered with some crypto exchange operating in India. This is the reason why both the Reserve Bank of India (RBI) and the central government are strict keeping in mind the safety of Indian investors in this unregulated market. A bill is also to be introduced in the ongoing winter session of Parliament to curb private cryptocurrencies. Along with this, RBI has also given a proposal to the government regarding its digital currency.