Cryptocurrency is the hottest issue of the present time. While its popularity has increased globally, the number of people investing in it has also increased in India. However, keeping in mind the risk in this unregulated market, the Government of India and the RBI have made preparations to crack down on private digital currency. The government of India is also going to introduce a bill related to cryptocurrency in the current winter session. Most people now have the desire to know about it, so we tell you what is cryptocurrency? and how it works.
What is Digital Currency?
Cryptocurrency is a means of financial transaction, exactly like the Indian Rupee and the US Dollar, the only difference is that it is virtual and not visible. That’s why it is also called digital currency. Its entire business is done through online mediums only. While there is an intermediary between the transactions of any country’s currency, such as the central bank in India, the business of crypto has no intermediary and is conducted online by a network. This is why it is known as an unregulated market, which makes someone rich in an instant and throws them to the ground in a jiffy. But despite these ups and downs, its popularity of it is increasing.
Most popular digital currency
Currently, the world’s most valuable and most popular cryptocurrency is bitcoin. After this, if we talk about the second favorite cryptocurrency Ethereum. And other top 10 digital currencies are Polkadot, Tether, Litecoin, Dogecoin, and others. Initially, Bitcoin dominated the crypto market, but with the growth of this market, thousands of digital currencies came into play. Today the scope of crypto has spread to almost all countries.
How Cryptocurrency is operated?
Cryptocurrency is a type of digital cash system, which is linked to a personal computer chain and is built on computer algorithms. There is no command of any country or government on this. Because of its popularity, many countries have legalized it. Trials have also begun in El Salvador to build a digital currency-focused bitcoin city.
Used through blockchain
The technique used to transact cryptocurrencies is called a blockchain. These digital currencies are encrypted. It is managed through a computer network. In this, every transaction is confirmed by a digital signature. Its record is maintained with the help of cryptography. All this work is done through a computer network. When any trade takes place in cryptocurrency, its data is recorded in the blockchain.
This is how you can buy cryptocurrency
There are two ways to buy cryptocurrency, but today the most effortless way is to buy them through a crypto exchange. Several cryptocurrency exchanges are operating around the world. In India, WazirX, Zebpay, CoinSwitch Kuber, and Coin DCX Go are the most famous. In addition, there are international platforms such as Coinbase and Binance, where digital currencies from around the world can be purchased, including bitcoin, Ethereum, tether, and Dogecoin.
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Cryptocurrency exchanges are open 24 hours a day
It is easy to buy and sell bitcoin and other cryptocurrencies in India. The most important thing is that all these crypto exchanges are open round the clock for purchase. The process of buying and selling cryptocurrencies through them is also easy. For crypto trading and investing in Rupee, you need to register on one of the exchanges. For this, after signing up on the site of the exchange, and completing your KYC process, money is transferred to the wallet, and then these digital currencies can be purchased.
Cryptocurrency bill In India
Significantly, in India, the number of people investing in crypto is increasing. According to a report, there are about 15 million active users in India who are registered with some crypto exchange operating in India. This is the reason why both the Reserve Bank of India (RBI) and the central government are strictly keeping in mind the safety of Indian investors in this unregulated market. A bill is also to be introduced in the ongoing winter session of Parliament to curb private cryptocurrencies. Along with this, RBI has also given a proposal to the government regarding its digital currency.
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