Cryptocurrency
What is Cryptocurrency? 💰
A cryptocurrency is a type of digital or virtual currency that uses cryptography to secure transactions, control the creation of new units, and verify the transfer of assets. Unlike traditional currencies such as the Indian Rupee (INR) or US Dollar (USD), cryptocurrencies are decentralized and typically operate on blockchain technology.
Key Features of Cryptocurrency
Decentralized System 🗂️
No single government, bank, or authority controls it.
Transactions are managed through a distributed network of computers (called nodes).
Blockchain Technology ⛓️
A blockchain is like a digital ledger that records every transaction.
It’s transparent, immutable, and publicly accessible.
Digital & Secure 🔐
Uses cryptography for security.
Almost impossible to counterfeit or double-spend.
Global & Borderless 🌍
Can be sent or received anywhere in the world instantly with very low fees.
Limited Supply 📉
Many cryptocurrencies, like Bitcoin, have a fixed supply (e.g., 21 million Bitcoins max).
Popular Cryptocurrencies
| Cryptocurrency | Ticker | Purpose / Use Case |
|---|---|---|
| Bitcoin | BTC | Digital gold, store of value |
| Ethereum | ETH | Smart contracts, decentralized apps |
| Ripple | XRP | Fast global payments |
| Litecoin | LTC | Faster version of Bitcoin |
| Dogecoin | DOGE | Initially a meme coin, now used for tipping & microtransactions |
How Cryptocurrency Works
Creating an Account (Wallet):
You need a crypto wallet to store your coins (like Paytm but for crypto).
Buying Crypto:
Purchase using a crypto exchange like Coinbase, Binance, or WazirX in India.
Making Transactions:
Send or receive coins using wallet addresses — similar to sending money via UPI but with blockchain.
Mining or Staking:
Some coins can be earned by contributing computing power (mining) or holding and validating transactions (staking).
Advantages of Cryptocurrency
✅ Fast transactions (24/7 availability)
✅ Lower transaction fees than banks
✅ Global accessibility
✅ Highly secure and hard to hack
✅ Potential for growth and investment
Risks of Cryptocurrency
⚠️ High volatility – prices can change very quickly
⚠️ Regulatory uncertainty – laws vary by country
⚠️ Hacking and scams if wallets are not secured
⚠️ No refund mechanism – once sent, transactions cannot be reversed
What is Cryptocurrency? 💰
A cryptocurrency is a type of digital or virtual currency that uses cryptography to secure transactions, control the creation of new units, and verify the transfer of assets. Unlike traditional currencies such as the Indian Rupee (INR) or US Dollar (USD), cryptocurrencies are decentralized and typically operate on blockchain technology.
Key Features of Cryptocurrency
Decentralized System 🗂️
No single government, bank, or authority controls it.
Transactions are managed through a distributed network of computers (called nodes).
Blockchain Technology ⛓️
A blockchain is like a digital ledger that records every transaction.
It’s transparent, immutable, and publicly accessible.
Digital & Secure 🔐
Uses cryptography for security.
Almost impossible to counterfeit or double-spend.
Global & Borderless 🌍
Can be sent or received anywhere in the world instantly with very low fees.
Limited Supply 📉
Many cryptocurrencies, like Bitcoin, have a fixed supply (e.g., 21 million Bitcoins max).
Popular Cryptocurrencies
| Cryptocurrency | Ticker | Purpose / Use Case |
|---|---|---|
| Bitcoin | BTC | Digital gold, store of value |
| Ethereum | ETH | Smart contracts, decentralized apps |
| Ripple | XRP | Fast global payments |
| Litecoin | LTC | Faster version of Bitcoin |
| Dogecoin | DOGE | Initially a meme coin, now used for tipping & microtransactions |
How Cryptocurrency Works
Creating an Account (Wallet):
You need a crypto wallet to store your coins (like Paytm but for crypto).
Buying Crypto:
Purchase using a crypto exchange like Coinbase, Binance, or WazirX in India.
Making Transactions:
Send or receive coins using wallet addresses — similar to sending money via UPI but with blockchain.
Mining or Staking:
Some coins can be earned by contributing computing power (mining) or holding and validating transactions (staking).
Advantages of Cryptocurrency
✅ Fast transactions (24/7 availability)
✅ Lower transaction fees than banks
✅ Global accessibility
✅ Highly secure and hard to hack
✅ Potential for growth and investment
Risks of Cryptocurrency
⚠️ High volatility – prices can change very quickly
⚠️ Regulatory uncertainty – laws vary by country
⚠️ Hacking and scams if wallets are not secured
⚠️ No refund mechanism – once sent, transactions cannot be reversed