These days the word cryptocurrency is getting so hype at the moment so first let’s know what does the word cryptocurrency means Firstly let’s break down cryptocurrency into two terms cryptography ¤cy.
So, in simple form cryptography means a method of protecting information and communications through the use of codes, so that only those for whom the information is intended can read & process it. And now the currency is the system of money in common use especially for people in a nation. Now cryptocurrency as a whole is a secured way of transaction which is in digital form.
In this ongoing digital world, the currency is also taken in digital form & this currency taken in digital form is called cryptocurrency such as bitcoin whose name has been popular worldwide these days. So what is cryptocurrency its history, what are its benefits, the reason behind being illegal in some of the countries, and much more information related here we are to solve all your problem?
What is cryptocurrency and Bitcoin?
Cryptocurrency is a virtual currency that was announced in 2008 & circulated in 2009 all over the world. So 1st cryptocurrency announced was no other than the popular bitcoin. Cryptocurrency is not like coins or paper money. We can neither keep this as cash or coins in our pocket nor hand to hand but this is safe in our digital wallet. It’s just an online currency only because it exists only online payment of bitcoin is only done through computer. As we all know that like our Nepalese currency, euros, or dollars our government has all its control from the central bank or any governmental banks but these bitcoins do not follow the traditional banking system. It is transferred from one computer wallet to another in a continuous way. Like bitcoins around 5000+ cryptocurrencies are floating all around the world. Some of the cryptocurrencies are Etherium (ETH), Ripple, Litecoin, Dogecoin, Cardano (ADA). In these currencies also we can buy & sell as we do on bitcoin. But right now bitcoin is only at the top of these currencies we can say it’s the most popular one. We can know how popular it is by knowing the fact that most of the popular biggest companies of the world have started accepting bitcoin currency in coming days the number will be increased furthermore. by the use of bitcoin currency, we can do shopping, treading, food delivery, travelling & everything else can be done.
Why use cryptocurrency and why is it illegal in some of the countries?
Some of the advantages of cryptocurrency are listed below
- No geographical barrier.
- No intermediary in between required.
- Charges are very less.
- It’s very fast to transact.
Just a few years back till 2020 in one of the top ten biggest countries in the world in the land area & most populous country India also there was an illegal system to use cryptocurrencies. As it was banned by RBI but from march 2020 this ban was removed & it’s legal now so the number of investors are also increasing in this virtual currency. This currency system is still illegal in most of the countries in the world like Nepal. As it is also thought as the darkest web system so it is taken as an illegal system in some of the countries here are some of the disadvantages considering which it is made illegal in some of the countries
1. Transition once done is irreversible: Knowing the fact that the money once invested in this cryptocurrency is not given back people in most of the countries think once if accidentally the money is transferred to the wrong destination it cannot be given back as compensation or anything else.
2. Can be used for illegal activity: Most of the people in those countries in which this currency is banned think that it is the darkest web system because what happens on the web they are unknown to the system & people are unknown about whom the money is transferred & who had sent the money but they just know the code only. So they think it makes it easy for some people to run their illegal activity. But we never suggest you to use this currency for illegal activity.
How can we invest in it?
After knowing all this information about cryptocurrency you might want to invest in it & raise the question of if you can invest in it. So the answer to it would be yes you can invest in it till it’s legal on your country. It is very simple as others. We can download coinswitch, Binance application we can invest in cryptocurrency or we can say we can buy or sell this currency. This will be as easy as you buy your favorite products from amazon. These apps have millions of users in the whole wide world.
As we all know now that we get a lot of profit in it but it has its own risk as well so we have to get a lot of detailed information before we invest in it or in which we are investing. So that you can have a low risk& high profit on it.
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