24-Jun-2022 Cryptocurrency and Block chain

Most of the cryptocurrencies are on the decentralized network. These decentralized structures allow them to exist outside the control of governments and central authorities.

An increasing number of companies worldwide are using bitcoin and other digital assets for a host of investment, operational, and transactional purposes. As with any frontier, there are unknown dangers, but also strong incentives. Bitcoin makes up nearly 40% of the crypto market. 

Cryptocurrencies are legal in most of countries except in Iceland and Vietnam. El Salvador is the first country to encourage crypto adoption in 44 countries. Further, Japan legalized Bitcoin in April 2017 and accepted it as a lawful form of currency.

In India, it is still not clear whether the cryptocurrency is legal or illegal as there is no law that says cryptocurrency is illegal. So, neither it is legal nor illegal, still we can see the excitement in Indian residents to trade in cryptocurrency and to avail the yield out of such virtual form of currency.

What is Blockchain?

A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. In very simple terms it is a system of recording information, like a digital ledger.

Whenever a new event or transaction takes place a new block of data usually containing transaction details and a date and time stamp is added to the chain. Due to its public and algorithmic nature, it is difficult to alter, hack, or cheat.  The Blockchain helps authenticating the genuineness of the holdings of the crypto currency. 

What is Cryptocurrency?

Cryptocurrency is a form of decentralized digital currency, with no physical money in existence. It is not issued by a central body. Instead, it is generated by a process called mining. It is also called the “Proof of Work” model.

Mining involves computer processors solving complex puzzles. Whenever a puzzle is successfully completed, a new block is added to the blockchain, and currency is generated to reward the miner.

Cryptocurrency is then stored either in online exchanges, digital wallets, or physical hardware. It can be sent between address either among individuals or organization in the form of payment.

There are thousands of cryptocurrencies available to mine, buy, and trade. The most popular include Bitcoin, Ethereum, and Stellar.

Tips for Smooth Operations In The Cryptocurrency Domain:

1. 1.  Focus on educating yourself about the fundamentals of cryptocurrency & market and take accurate decisions accordingly.
2. 2.  Understanding the blockchain Technology and study about the underlying technologies (i. e. blockchain Technology) having real-world use-cases to find profitable investments. Focus on technology and innovation instead of puff.
3. 3.  Prepare for extreme volatility: Crypto is a ‘high-risk, high-reward market because of the frequent fluctuations. So, focus on the utility of tokens and stick to the ones with real-world adoption.
4. 4.  Study price action, political scenario and price history of the past six months to one year and mark average entry points.
5. 5.  Avoid investing all your money at once.
6. 6.  Select a recognized exchange.
7. 7.  Keep an eye on the security of your account opened with the exchange. Change your passwords, as and when required. Avoid keeping all your funds on one exchange. Further maintain multiple accounts and split your funds.
8. 8.  As a beginner, you must kingpin on token utility, real-world adoption, significant trading volume and steady growth over the years.
9. 9.  Focus on some good investment opportunities instead of running behind every pumping token. Keep your distance from those who are soothsayer.
10. 10. Cross-check and verify the URL of the exchange before entering your details. The source of downloading the trading applications must be authentic.

Conclusion:-

In a nutshell, Crypto is democratizing the world of finance by empowering people financially. Cryptocurrencies are still progressing with soaring adoption across industries, financial institutions and government bodies. Only time will unfold the fate of this irreversible wave of Crypto Currencies.