Cryptocurrency or Crypto is the currency secured by cryptography, which makes it nearly impossible to double-speed. Cryptocurrency is a virtual or digital currency. Decentralized networks of many cryptocurrencies are based on blockchain technology.
The main feature of cryptocurrencies is that they are not issued by any central authority, immune to government interference or manipulation.
A cryptocurrency is a digital asset that is distributed across a large number of computers. This is outside the control of government and central authorities through a decentralized structure.
The word Cryptocurrency is taken from the techniques which are used to secure the network i.e, encryption. The essential component of many cryptocurrencies is Blockchains, which are an organizational method for ensuring the integrity of transactional data.
Many experts believe that blockchain will affect related technology i.e, finance and law. Cryptocurrency is also used for false activities including illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. They also have been commended for their portability, divisibility, inflation resistance, and transparency.
Crypto refers to the various encryption algorithms and cryptographic techniques that safeguard entries. Entries such as public-private key pairs, elliptical curve encryption, and hasting functions. Cryptocurrencies are systems that allow for secure online payment which are denominated in terms of virtual ”tokens,” that are represented by ledger entries internal to the system.
Cryptocurrency is of many types
- The most popular cryptocurrency is Bitcoin, which is launched in 2009.
Some of the cryptography today used in cryptocurrencies was originally made for military applications. At one point similar to legal restrictions on weapons government wants restrictions on cryptography, but due to freedom of speech secured by the civilians to use cryptography that is not possible. Today, around $1.5 trillion is the value of all cryptocurrencies. Currently, bitcoin represents more than 60% of the total value.
Reasons why one should invest in Cryptocurrency
1. Variety of Cryptocurrencies
The cryptocurrencies are many of over 5000 counts. Some of them don’t have trading volumes but as of now there has been a sharp point in their prices including dogecoin and dogecoin killer, but there has been seen there is a difference between BTC to other cryptocurrencies. That’s why there is a huge outflow of bitcoin last week. There is not only one crypto available to you, you can take as many bets as per your understanding and risk appetite.
2. Fluidity is high
While proving this Elon Musk, tesla’s boss lately offloaded just to prove, cryptocurrencies or rather BTC serves as a ‘ money alternative.’ Investors with digital tokens it is only the recent penchant for them across the board amid the epidemic that is pushing them to scale to new higher market capitalization and hence their valuation. Moreover, this increasing interest is unlikely to fade anytime shortly.
3. This provides a platform to broaden your investment portfolio
This is rightly said by Warren Buffett that putting all the eggs in one basket is just a bad choice and this shares similar to even the investment world where a single investment or more so into one asset can never be satisfying enough to reach your financial goal. As is the current situation, you may be a force to invest in these cryptos to fence against inflation and even the volatility in global stock markets amid the geopolitical, health, and economic crisis.
4. The status of cryptos such as bitcoin is similar to gold
Experts have accepted the fact that the value of bitcoin and gold is similar as both are considered as a store of value. however, gold and bitcoin work to be an inflation and volatility hedge. Some of the investors are even mobbing to buy bitcoins to save themselves from the devaluation of the dollar in the future.
5. Bitcoin trading at a sharp discount
Bitcoin is the most trading cryptocurrency that commands the highest market cap. Bitcoin from its lifetime highs of sub $65000hit in April and now it is trading at $43,371, this changes into a 33% discounted price. According to the general outlook by July 2022 bitcoin may hit levels of sub $85000, providing good gains of over 46%.
6. India connection – Cryptocurrency
Some time Fresh investment into cryptocurrency came to a stop in India, it is being declared that banning cryptocurrency shall neither be workable and will be hard to come by, even know the financial entities are becoming cautious on these digital tokens. As the investor invest in the domain is a hurdle, there have been suggested some ways to regulate the cryptocurrency market in India and the one suggestion is that India should follow the Singapore model and work on ways to check any fake attempts such that neither of the participant
suffers on account of any illicit act.
A beginner investor who wants to invest and earn money, many opt for real estate, commercial loans, etc. But many investment areas are not very attractive because there are high-risk factors and low returns. The new investor should invest in cryptocurrencies and pay attention to their securities, as cryptocurrencies and securities are marked by high liquidity. Moreover, your investment will give high returns, and more importantly, this will give you more independence and flexibility. there is an unlimited choice of coins and securities. Importantly the future of cryptocurrencies seems bright.