CRYPTOCURRENCY/ BITCOIN/ DOGECOIN
There is huge talk going on in the financial world and everyone is eager to buy their Bitcoins, Dogecoins, and Ethereums.
Well the world is in love with crypto currencies and everyone is savvy investing in these Coins. Well, crypto currency basically is Virtual Money or you can call it digital currency. It has no physical form.
Is it safe? – Yes Because it secured by a method called cryptography and hence it cannot be Counterfeit or Double spend.
How does it operate? – The Crypto world is operated on the basis of a technology known as Block chain.
Does government has anything to with it ? – NO, absolutely not this currencies are not issued by any central authority and hence are not regulatory in nature.
BITCOIN and HOW THE CRYPTOCURRENCY CAME INTO EXISTENCE.
Bitcoin was created in the year 2009 by an anonymous person with the pseudo name Satoshi Nakamoto. No one knows who Satoshi Nakamoto is. It is decentralized and does not come under the regulation of any Government. There is no physical bitcoin available. All the data are stored on public ledgers and are viewable to anyone interested. Everything is transparent. The launch and rise of Bitcoin triggered the launch of hundreds of various other Cryptocurrencies.
So why BITCOIN? What is the benefit?
- Lower transaction fees than traditional online platforms.
- Completely decentralized.
- User Autonomy. No banks worrying you.
- Identity Discretion.
- Peer to Peer transactions will help you transfer money without and taxes or cuts by a third party.
- Elimination of banking fees.
- Way too few transactional fees.
- No personal information required to buy anything. No data leak issues.
- It Will help with accessibility. (No server down issues)
How is Cryptocurrency created?
A collection of computers all of them are running the Currencies code using the BLOCKCHAIN technology. Every computer has specific blocks and all the blocks store transaction details. Every new block is filled with new transactions and can be transparently seen and hence the system cannot be cheated. AAH, Well it is hard to understand I know and so I found this great source where you can learn more about MINING.
How to mine Cryptocurrency
Mining a Cryptocurrency, how do we do that? – By solving puzzles.
OK, it is not that easy though. Basically, we have to verify a block of transactions by solving a puzzle. The moment you are able to solve the puzzle you will receive a number of crypto coins in your account. A bitcoin miner receives 6.25 coins before it used to be 50 bitcoins per block.
The blосkсhаin is hоme tо the full trаnsасtiоn reсоrds оf Bitсоin, аll the wаy bасk tо when the first blосk wаs mined in 2009. Оver the yeаrs, а сhаin оf blосks hаs been сreаted, meаning раst trаnsасtiоns аre рrоhibitively diffiсult tо edit. In оrder tо аmend trаnsасtiоn dаtа, every single blосk thаt саme аfterwаrds wоuld need tо be reсаlсulаted — аnd thаt wоuld tаke аn insаne аmоunt оf соmрuting dаtа.
The above paragraph has been courtesy of CoinMarketCap ( a great website if you are interested in learning more about cryptocurrency)
The Process of Mining :
- A new block is created every 10 minutes.
- Your aim is to receive this block as a reward.
- To get rewarded you have to solve a puzzle.
- The first one to solve this puzzle receives the block.
The reward will be the coin as well as all the transaction fees happening in the block rewarded to you.
Cryptocurrency Mining need a lot of computing power and hence to become a miner you would have to invest in buying a good mining setup.
Risks associated with investing in crypto?
- Lack of guarantee because of its digital nature.
- No long-term credibility to back it.
- Bitcoins can be used in black market trades.
- Government can ban cryptocurrencies at any time.
- Lack of Uniform regulations.
INVESTING IN CRYPTOCURRENCIES
Advantages of Investing in Crypto –
The biggest and the only advantage you have if you trade crypto is POTENTIAL. Crypto currencies can multiply your money 1000 times. The benefit of volatility.
HOW MUCH SHOULD YOU INVEST? – NO LYING, INVEST ONLY THE AMOUNT YOU CAN AFFORD TO LOSE AND NOT FEEL BAD. DON’T PUT AN AMOUNT THAT YOU CANNOT AFFORD TO LOSE.
DOCUMENTS REQUIRED FOR INVESTING ?
BEST APPS FOR INDIANS TO INVEST IN CRYPTOCURRENCY
Founded by an Indian WazirX is the hot favorite of most Indian crypto investors. WazirX is the most used platform in Indian and also a very safe one. They have a very easy signup process and KYC process for enhanced security. You can transfer money easily through UPI or Netbanking.
2. COIN DCX
Launched in April 2018. This wallet got famous in a short span of time. This is one is my personal favorite due to its hassle-free transaction process and fewer charges and also COINDCX has a very supportive customer care system.
Binаnсe is рrоbаbly the mоst detаiled аnd user-friendly арр yоu саn use right nоw fоr trаding аll sоrts оf сryрtосurrenсies. Yоu саn buy Bitсоin using Indiаn Ruрees аnd even Раytm аnd UРI. The best раrt is thаt the арр dоes nоt сhаrge аny аdditiоnаl fees tо рurсhаse сryрtосurrenсies fоr Indiаns either. Yоu саn аlsо trаnsfer funds between WаzirX аnd Finаnсe free оf сhаrge. The арр аlsо оffers tutоrials
Zebраy re-lаunсhed in June lаst yeаr. It оffers а seаmless exрerienсe оn the арр. The арр is аlsо lightning fаst аt dоing trаnsасtiоns suсh аs withdrаwаl аnd deроsits. Zebраy аlsо аllоws users tо trаde сryрtосurrenсies аt the mоst соmрetitive rаtes.
Coinbase also offers a massive knowledge base for beginners to use if they are looking to start trading crypto. The app is simple and easy to use and offers the ability to use digital wallets to transfer funds as well. If you really want to learn everything about blockchain and cryptocurrencies, this is a great place to start.
BEST CRYPTO CURRIENCIES TO INVEST IN 2021
Current Value – 94 Rs
Current Value of this coin is at 105 and has a great potential. This coin has a good development team backing its improvement and boasts cheap transactions. It combines pioneering technologies to provide maximum security.
Current value – 3208 Rs
A native coin that is fast growing and based on the Defi ecosystem. Solana is a fast, secure, and censorship-resistant blockchain providing the open infrastructure required for global adoption.
Current price 635 Rs
Launched by the biggest crypto exchange in the world Binance Coin has a strong backing to be trusted upon. the launch of Binance has hugely boosted the investor interest in Binance. Smells like potential here.
Current value – 55 Rs
Well seems like doge has the backing of DODGEMASTER Elon Musk. The most famous crypto in 2021 dogecoin is the top favorite crypto amongst all. It boasts the 4th highest market cap amongst all the Cryptocurrencies in the world. Fun fact about doge – it was created as a meme coin.