What is cryptocurrency? Its Advantages and Disadvantages

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What is cryptocurrency? Its Advantages and Disadvantages

 

Cryptocurrency is a digital or virtual currency. used as an exchange medium. It is a digital asset that you can use to buy things. In this post we will tell you what is cryptocurrency? So let’s see what cryptocurrency is.

 

What is cryptocurrency?

Cryptocurrency is a form of payment that you can use to buy goods and services online, just as people use Rupee, Dollar, Euro to exchange goods and services. It is done like currency. .

  • This currency has been secured through cryptography. Cryptocurrency uses cryptographic function for financial transactions. It maintains decentralization, transparency, and immutability through blockchain technology.
  • The government does not control cryptocurrency due to the decentralized nature of blockchain technology. And that is the reason why it cannot regulate its value.
  • The most important feature of cryptocurrency is that no central authority controls.
    Cryptocurrency can be sent directly between two parties by using private and public keys.
    Today cryptocurrency is known by most people all over the world. So let’s know how cryptocurrency works.

How does Cryptocurrency Work?

The transaction of cryptocurrency takes place with the use of “cryptocurrency wallets” software in the middle of the logo. The person doing the transaction uses the wallet software to transfer their balance from one account (AKA a public address) to another account. To transfer funds, an account related password (AKA ek private key) is required.

The transaction between the logos is encrypted and then broadcast to the cryptocurrency network and added to the queue to be added to the public ledger (record-keeping system).

And then the transaction is recorded through the “mining” process on the public ledger. All USER pass leader has access to any cryptocurrency. If they choose the access.

Here the transaction amounts are public. But who sent the transaction is encrypted. Each transaction has a unique key set.

Whoever gets the set of that key becomes the owner of the amount of cryptocurrency related to that key, just as the owner of a bank account owns all the money that is in that account.

Many transactions are added to the ledger at the same time. Miners are sequentially added to these blocks of transaction. This is the reason that ledger and the technology behind it is called “blockchain”. It is a “chain” of “blocks” of transaction.

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Advantages and Disadvantages of Cryptocurrency

Advantages

 

  • Cryptocurrency can be directly transferred between two people without any third party (bank).
  • This is secured with the help of public keys and private keys. Because of which it is very secure.
  • In comparison to the other payment option, the transaction Fee in this also seems very low.

Disadvantages

  • Difficult to understand – Cryptocurrencies is new. And people do not know much about it yet. People can sink their money by investing in it without proper knowledge.
  • Lack of knowledge – People do not know how to use cryptocurrency and in this way they open the way for hackers.
  • Not accepted widely – Many websites and companies do not accept digital currency yet. Very few countries have legalized its use. So it is not ideal for your everyday use.
  • You can lose your wallet. – You have the possibility of losing your wallet. If you lose one thing, then you cannot get it back.
  • No reverse payment – If you make a payment to someone by mistake, then there is no option to reverse that payment.

List Of All Cryptocurrencies (to name a few Cryptocurrencies)

Right now we are going to tell you the names of some Cryptocurrencies,that are very popular in the market right now, so maybe you have heard their names, but you do not know what it is, by the way, if you talk about this adjustment, then 1000+ There are cryptocurrencies that are used, you can see the list of all Cryptocurrencies (List of All Cryptocurrencies) through this link,

So let’s know that some Cryptocurrencies have used the name in the market right now.

  • Bitcoin
  • Bitcoin cash
  • Litecoin
  • Dogecoin
  • Ethereum
  • BAT
  • NEO
  • Ripple XRP
  • Stellar (XLM)
  • Cardano (ADA)
  • Hope you have found this article (What is Cryptocurrency? Its Advantages and Disadvantages) informative .. If you have any question you can ask in the comment section.

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