- 1 Introduction
- 2 What Is Cryptocurrency?
- 3 What Is Blockchain?
- 4 What Is Cryptocurrency Mining?
- 5 What Is Ledger In Cryptocurrency?
- 6 How does cryptocurrency work?
- 7 Advantage of cryptocurrency
- 8 Disadvantage of cryptocurrency
- 9 Best Cryptocurrency To Invest In 2021
- 10 Top 20 Cryptocurrency List
- 11 Conclusion
kamchalu.com welcomes you guys. Hello friends my name is Sourav and today we are going to learn about cryptocurrency. What is cryptocurrency? How does it work and what are its benefits and many more. Today we are going to give you answers to these questions. Let’s start.
What Is Cryptocurrency?
Cryptocurrency is a type of digital currency which is completely secure because this currency works on Blockchain technology. This currency is a digital form of payment for goods and services.
What Is Blockchain?
Blockchain is a digital means of recording transactions where it is impossible to hack or spoof computer systems. This technology is a completely new technology. In this technology, all the computers around the world are fully connected to each other, if there is any wrong transaction in any computer, then that transaction starts showing in all the computers.
What Is Cryptocurrency Mining?
Friends mining means that when a sender sends cryptocurrency to a receiver then there will be a complex problem inside that transaction and when the miners solve this problem then they get some cryptocurrency rewards, that is what we call mining. Let’s try to understand it through example,
Suppose Ramesh sent 1 bitcoin to Suresh, now here Ramesh is the sender and Suresh is the receiver. Now this transaction will be recorded in ledger but some error occurs while doing the transaction now miners will work to verify this transaction. And when he successfully verify that transaction then he will get some rewards in return. That is what we call mining. Special software is required to do mining, you can also earn money by mining.
What Is Ledger In Cryptocurrency?
Although we know the work of ledger but still we know about it. Ledger has a huge role in the field of cryptocurrency. Because in this all the transactions are recorded in a systematic way. All the cryptocurrency you have bought or sold or invested in, all transactions are done in digital form inside the ledger.
How does cryptocurrency work?
Cryptocurrency is a digital currency that is used to buy goods and services digitally. Blockchain technology is used to further secure this currency. Apart from transactions, people like to invest or trade in it. Which is also a means of earning money. There are many ways in which cryptocurrency can be used to earn money online. Like Minning , Buy and Sell Cryptocurrencies , DeFi Yield Farming and many more.
Cryptocurrency is a decentralized currency which means that there is no government and bank authority on this currency. This currency belongs to everyone, every person is the owner of his own currency. That is why its price is completely dependent on the demand, if the demand increases then the price also increases and if the demand falls then the price also decreases.
Advantage of cryptocurrency
Bitcoin is a decentralized currency, apart from this, many currencies are also decentralized. This means that there is no interference of the government in this. That is, the government cannot enforce any law in this nor can it increase or decrease their prices. This currency is completely government free currency.
2.Fully Secure Currency
This currency is completely safe and secure. Because this currency works on Blockchain technology. In which no person or computer can fraud. If he tries to do so, he is caught immediately.
3.No government Control
This currency cannot be controlled by the government because it is a decentralized currency. If there is a common currency, then the government of that country can increase or decrease the prices of that currency. But it has no effect on cryptocurrency prices. Whether it is an economy crisis or anything else, it does not have any kind of effect on its prices. Its price depends on the demand and statements of the companies.
4.No one can get full information about it
This means that no person or any bank can know about how much cryptocurrency he has or how much he has sold. Because all the details are recorded in a code language in the ledger. And it does not record any transaction, it is an automatic system where the help of big software is taken.
Disadvantage of cryptocurrency
1.Can’t complain to government
Friends, by the way, cryptocurrency is very secure. But if there is any fraud with you, then you cannot complain about it to the government. Because the government has no right over it. You cannot make any claim anywhere because this currency does not belong to any one. This is computerlised technology.
Friends, this is a secret currency, so people can also use it for wrong purposes. That is, people can misuse this currency for any kind of wrong payment.
When cryptocurrency is minnig, many software and many resources are used in it. And pollution also flourishes in it. Which is not good for our eco system.
Best Cryptocurrency To Invest In 2021
Bitcoin is a digital and virtual currency. This currency is completely different from other currencies. We can neither see nor touch this currency. Still, we can use it digitally in transactions. It is a decentralized currency. On which no government has any right. Bitcoin was invented by Satoshi Nakamoto in 2008. And a year later it was released as Global Payment. Since 2009, it has remained as a popular currency. In the year 2009, its price was around 20 rupees. And in the year 2014, its price jumped and became 14000 thousand rupees. Even today its price is the highest. Today its price is around Rs.32 lakhs. It keeps on increasing. you can invest also.
Ethereum is one of the second largest cryptocurrency in the world. It is one of the most popular currency after bitcoin. You will be surprised to know that 47 out of the top 100 currencies in the world are such that are built on the Ethereum blockchain. Ethereum was discovered in 2013 by Vitalik Buterin. This currency has increased its value in a short time. Another special thing about this currency is that no limit has been fixed for it. Like bitcoin can’t exceed 21 million. But no fixed volume has been decided yet. You can also invest in this currency.
Litecoin is a cryptocurrency. It comes in number 17 inside the market of cryptocurrency. It was discovered in 2011 by a retired Google employee named Charles Lee. You will be surprised to know that bitcoin and litkin have almost the same value. But still it is different from each other. The limit of bitcoin is 21 million but its limit is 84 million. That is, it is a long term investment. We are placing it at number three in the list of investments in 2021.
You can also call Dogecoin a funny coin. Just like bitcoin is based on a blockchain, Dogecoin is based on a meme. This currency was made in jest. You must have been surprised to hear this but it is absolutely true. At one time the dog meme became very famous and made it Dogecoin. This coin was invented by Jackson Palmer in the year 2013. Jackson tells that he got this idea in jest. That’s why he invented it. But in the year 2021, we are keeping it in the top 4 number. Because suddenly its prices had jumped. People are also saying that it can also become a future currency.
Vechain is a currency that works to connect the supply chain to the block chain. So that more transparency can be brought in the transaction. In today’s time, this currency is working completely on the ground, due to which this currency is slowly becoming popular. VeChain wants that the supply chain should come in the blockchain so that the errors that come can be reduced. It has been discovered by Sunny Lu, who is from China. If you want to invest in this then definitely do it because its future can prove to be very good. That’s why we’re putting it at number 5
Binance is one such cryptocurrency that has been gaining popularity for a long time. It falls within the top 100 cryptocurrency and its symbol is (BNB). With this currency, we can exchange binance or do our transactions with it. If you are buying a smart contract then you can easily make payment in it. Binance Coin is a coin launched by Binance. Which makes our transaction very smooth. It has been growing for a long time and you can invest in it. Its future can also be very good. We are placing this coin at number 6 in Best Cryptocurrency Investment in 2021.
Friends, apart from this, there are many such currencies on which you can invest in 2021 or in the coming time and earn a lot of money. Like XRP and Ripple, Basic Attention Token and many more currencies. Friends, do not invest at the behest of someone, you should do a little research about that currency, analyze it completely, then only you invest.
Top 20 Cryptocurrency List
5.Binance Coin (BNB)
8.USD Coin (USDC)
14.Binance USD (BUSD)
18.Bitcoin Cash (BCH)
19.Wrapped Bitecoin (WBTC)
I hope you have got enough information about cryptocurrency. If you want any information other than this, then you can comment us or message me in my social media account. kamchalu.com thanks you for visiting the page.