Cryptocurrency is a digital currency used as a medium of exchange where the coin ownership is recorded in a online ledger with a strong cryptography to secure online transactions. The word Cryptocurrency is derived from encryption techniques which is used to secure the network. Cryptocurrency works with the technology called ‘block chain’. Many experts criticize that Cryptocurrency will disrupt many industries including law and finance.
The cryptocurrency is not issued by any Central authority or any Government or Corporation . Many companies issue their own Bitcoin which is often called as ‘tokens’. According to a market research website, more than 10,000 different cryptocurrency are traded publicly, among them bitcoin is the most famous cryptocurrency followed by Etherum, Litecoin, Cardano and many more.
Cryptocurrency system allow for secure payment “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries such as elliptical curve encryption, public-private key pairs, and hashing functions. Investors can purchase Cryptocurrency through Cryptocurrency exchange such as Coinbase, Cashapp and many more.
Some Cryptocurrencies, including Bitcoin, are available for purchase with U.S. dollars .To buy Cryptocurrencies, we need a “wallet,” an online app that can hold our currency. Generally, we can create an account on an exchange, and then we can transfer our real money to buy Cryptocurrencies such as Bitcoin or Ethereum or any other Cryptocurrencies. Coinbase is one of the popular Cryptocurrency trading exchange app where we can create both a wallet and buy and sell Bitcoin and other Cryptocurrencies.
Some of the cryptography used in cryptocurrency today was originally developed for military applications. But at a particular point, the government wanted to put a control on cryptography similar to the legal restrictions on weapons, but the right for civilians to use cryptography was secured on grounds of freedom of speech. Cryptocurrency is banned many countries like china but it is legal in United states.
Cryptocurrency is mostly criticized for used in many illegal activities such as money laundering and tax evasion, exchange rate volatility and vulnerability of their infrastructure underlying them. However Cryptocurrency is also praised for their profitability, divisibility, inflation resistance and transparency. Cryptocurrency hold the promise of making fund transfer easy without the need for any third party.