Especially in India, there was a cloud of confusion surrounding the legality of cryptocurrency. The confusion has started clearing out lately, due to which people wanted to know more about cryptocurrencies. So, here is some rudimentary information for beginners.
What are cryptocurrencies?
A cryptocurrency is a digital form of currency that one can use to buy services and goods. One needs traditional, real money (often called fiat currency) to buy cryptocurrency, also known as ‘Crypto’. The fundamental of crypto is that it uses a ledger which is protected by strong cryptography, to secure payments and online transactions.
Different types of cryptocurrencies are available in the market, just like we have Dollars, Pounds, Euro, Peso, INR, and so on. Here is a list of some of the most popular cryptocurrencies that have been around for quite some time now.
● Bitcoin (BTC)
● Ethereum (ETH)
● Tether (USDT)
● Stellar (XLM)
● Binance Coin (BNB)
● Dogecoin (DOGE)
This is not a comprehensive list. There are many other cryptocurrencies popular among the users as well. To know more, you can check out the list of cryptocurrencies from Bitbns, an online crypto trading platform.
Other uses of cryptocurrency
The main USP of cryptocurrency was the anonymity of transactions, as the strong end-to-end cryptographic encryption of the ledger, it was hard to track the transactions. This anonymity appealed to the younger generation, and they took an interest in cryptocurrency.
Apart from paying for goods and services anonymously, cryptocurrency also emerged as an investment option for many. People considered crypto to be the currency of the future, and they started investing in it. It can generate and store value over time.
For example, Bitcoin was trading at $20,000 in 2017, and now it is trading at $51,532 or INR 39,51, 134. Many people made a fortune, while riding this tide of volatility.
(Disclaimer: Dealing in cryptocurrencies involves high level of risk and may be considered carefully by investors before investing. Investors should carefully consider their investment objectives, trading experience and their risk-taking capacity prior to trading in cryptocurrencies. Being a volatile currency, it carries with itself huge risks of complete or substantial losses in the investments being made thus, investors must seek help from a professional advisor prior to trading/investing. Certain hyperlinks or referenced websites on Zee Business, are for the sake of convenience only and any such descriptions, references to, or links, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with Rapidcube Technologies Private Limited. Rapidcube Technologies Private Limited does not guarantee the accuracy, adequacy or completeness of any information provided in the Content and is not responsible for any errors or omissions or for the results obtained from the use of such information. Such information is provided or maintained by third parties and Rapidcube Technologies Private Limited does not exercise any control over the same. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market information, and does not constitute investment advice in any manner whatsoever. Rapidcube Technologies Private Limited will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.)
