All about Cryptocurrency || You should invest or Not ?

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Cryptocurrency
Cryptocurrency

What Is Cryptocurrency?

Cryptocurrency is a system of digital currency that is decentralized and does not depend upon any central authority like a government or any organization.

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It concerns the totality of intangible and virtual transactions.

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Cryptocurrency is a system in which algorithm encryptions are applied to secure a network.

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This network is secured by a method called cryptography, that assures it, to not be imitated.

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These organizational components of the security of transactional data and its integrity are called blockchains. And some special sort of virtual tokens is also dedicated to online payments.

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In short, we can say that cryptocurrency is the new system of payment, that is completely digital and very suitable for today’s modern world.

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How Does The Cryptocurrency Emerged?

All about Cryptocurrency

A kind of digital coin was created for the first time in history named “bitcoins”.

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One more decade before that, many attempts were taken to create the online currencies with encryption securities–that resulted in some undeveloped digital currencies, are B-money and Bit Gold.

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In the year of 2008, a peer-to-peer Electronic Cash System in the name of Bitcoins was introduced by a non-real identity –Satoshi Nakamoto.

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In 2009, Bitcoin software was created to record and verify transactions. Through this software, new bitcoins were created and they became accessible to the public.

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After a year, bitcoins were sold for the first time.

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And then in 2011, two more kinds of encrypted currencies were created are “Namecoin” and “Litcoin”. These currencies proved to be more beneficial as compared to bitcoins.

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And now, more than a thousand cryptocurrencies are present.

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After 2012; the years 2013 and 2014 sustained to be the most drooping years for cryptocurrencies.

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In 2013, the prices of bitcoins suddenly begin to decrease from $1,000 to $300.

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Then in 2014, one of the biggest bitcoin exchange platforms– mt. Gox got scammed of about 850,000 bitcoins, that the owners could never get back.

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The hands behind this theft are unable to expose till today!!!

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Despite this downfall of cryptocurrencies/bitcoins, it still has an enormous amount of significance due to the way it makes money.

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How Does The Cryptocurrency Make Money?

There are two ways to make money through cryptocurrency–one is very simple, by selling your bitcoins at profit; whereas, other is very complex, that is mining the bitcoins!!!

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But, first of all, you have to invest in it.

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For that, you need to purchase cryptocurrency.

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There are different crypto-exchange applications present that allow you to purchase cryptocurrency– Cash App, Coinbase, etc.

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Once you did invest in it, either you can sell it, or earn new coins by being a bitcoin miner.

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Now, another question arises there that, what is Bitcoin Mining?

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Bitcon Mining means earning new bitcoins as a reward after completing verification of a block.

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Blocks are the verified transactions that are added to the blockchains.

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1 block is equal to 1 MB verified transactions.

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Miners help the cryptocurrency system to avoid the double-spending problem. Because when transactions are verified, the coins that are used can not be re-used.

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But not every miner can win the reward. Only the one who provides the right/closest answer first wins the reward. This in terms of cryptocurrency is known as Proof of Work (PoW).

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And for providing PoW, you require to have a very sophisticated computer, and a  great numerical solving ability.

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How Does Bitcoin Works?

For bitcoins, it isn’t the same way as cash.

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Your transactions are saved and everyone can see your encrypted coins. But, the only owner can decrypt them, no one else can.

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The Owner possesses a private key to decrypt their coins.

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But these coins/currencies are not valid for banks. Only some particular entities accept them. This is why they retain their kind of called Digital Wallet.

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These digital wallets are also called crypto wallets.

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It is an electronic device that furnishes assistance to online transactions.

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You can purchase anything and make payments by using these wallets. Isn’t that amazing?

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One of the popular types of crypto-wallets is bitcoin wallets. However, there are many more types.

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Not only the types of wallets but, cryptocurrency also has types of its own.

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Nowadays, more than 1,000s of types of cryptocurrency/digital coins are present. But 3 most popular types are :

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  1. Bitcoins (certainly)
  2. Altcoins &
  3. Etherum

Each of them has its pros & cons and facilities & limitations. Because each digital coin has a value of its own. You just have to decide that which one suits you the most.

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But after all these assuring facilities, people still have some suspicions about the safety and security of cryptocurrency.

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So here I’m gonna wipe out all those doubts and questions that are roaming in your mind, by explaining the next section of my article.

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Is Investing In Cryptocurrency Safe?

Cryptocurrencies contain the procession of cryptography. Due to this factor, cryptocurrency is recognized to be incredibly great in terms of safety and security.

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Cryptography ensures not to have any Go-Betweens while the transactions are taking place.

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And then the private keys that are provided to every owner for their encrypted coins are the very special part of its safety and security.

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No, another person can decrypt the coins other than the one who knows the private key code.

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That means, your money is certainly safe in your digital wallets and no one can steal it in any way.

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Why cryptocurrency is always criticized?

Now you might be thinking that if cryptocurrency was that useful and beneficial, then why it is criticized always? Is it like that?

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Well, if this is the question, then your question is 100% accurate.

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Yes, it does happen!! Cryptocurrency is frequently criticized in the economic world and the market hub.

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It is due to the ups & downs that occur in the digital currencies due to the market prices that alternates its ranking on stimulation of its supply and demand.

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The prices of digital coins may plunge to decrease abruptly anytime depending on the reduction of the market’s demand for them.

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Secondly,  the great security of cryptography, cryptocurrency still bears the risk of being hacked.

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That means you have to keep in mind that you may have to confront loss if you are investing in cryptocurrency.

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Yes, it is possible !!!

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Conclusion–

There will be no misgiving to say that cryptocurrency is a great idea of digital money in this digital world of nowadays. It is profitable, diverse, comfortable, and so on.

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Yes, some drawbacks of cryptocurrency are also there.

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But few drawbacks can not take away the privilege and usefulness of cryptocurrency.

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Every technology in this world has some flaws, there is no technology present in the world that only & only gives benefit.

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In the end, I would advise you to always take advice from your instinct. Instinct is the fairest advisor.

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Ask from your instinct that, either it will be beneficial/suitable for you or not!!!

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All the pros & cons are in front of you in this article above. Now it’s up to you!!

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Whether are you want to invest in cryptocurrency or not???

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So what’s your opinion? Thank you!

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This great post written by best Article writer Saweraimam. If you want to write an article within Best SEO keywords, you can connect with her: saweraimam01@gmail.com

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