What is cryptocurrency and how does it differ from the standard currency?

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“Hey there, do you know about cryptocurrency? Ive heard people say that it‘s the next big thing since the internet. Since its inception, millions of crypto fanatics have had their fortunes turned. What do you say about this global sensation? “

These types of conversations have become the talk of the town. People are curious to know how they can multiply their money twofold or threefold with just a few quick taps and touches. On the contrary, they lack knowledge about cryptocurrency and blockchain technology. How did a new form of currency emerge from nowhere and swiftly gain a massive following? Blockchain technology and cryptocurrency are technical yet easy to understand on a fundamental basis.

Bitcoin is the king of all cryptocurrencies.

Bitcoin came into existence in 2009 as a form of digital currency. Intended to use as a medium of internet currency. Dark web users were the early adopters of bitcoin as they traded the currency over Silk Road and various other platforms.

when an assigned computer (node) solves complex calculations (hashes) and, in exchange for the calculations, the owner provides proof of work, shared with other nodes in the chain for verification. Ultimately, known as mining. Ownership of bitcoin is granted upon completion. Bitcoin supply is limited to 21 million bitcoins. As more bitcoins are mined, the mining process requires much more time and energy.

How does it differ from other forms of currency?

Traditional currency, is a centralised form of currency, owned by the state or any other regulatory body. Such bodies control the currency, manipulating it over time to maintain a balance between economies of scale. Cryptocurrency is based upon blockchain technology, with all the relevant data stored in blocks that are impenetrable and verified by the blockchain. It is easy to transfer without any third-party authentication or fees required. Most importantly, cryptocurrency cannot be manipulated by any authoritative figure to undermine its market value.

The state or government solely owns the traditional currency. Absolute access to every currency coin or paper note ever minted. On the other hand, cryptocurrency doesn’t allow such manipulative tactics to increase/decrease value or supply. It is a decentralized form of currency. On the contrary, decentralized currency has its own perks, such as no or very minimum extra fees on deposition, withdrawals or any other transactions. Although, cryptocurrency exists only virtually and cannot be handled physically. Hence, reducing any hassle of cash in hand and almost no trips to bank branches to fulfil absurd formalities.

How can I buy and own cryptocurrency?

Crypto coins and tokens are bought from various exchanges such as Binance, Coinbase, OKex, Huobi, and many more. FIAT (common) currency is added to the exchange wallet via direct wire transfer or through peer-to-peer (P2P) buying. After a successful funds transfer, you can buy your desired choice of cryptocurrency. Trading requires market analysis and use of trading signals platforms such as onion crypto signals mobile application, available on Google Play and App store

In conclusion, people are still in awe of bitcoin’s value and how it has rocketed over the years. I say this is just the start of new avenues of the internet that are yet to be explored. Join the crypto bandwagon and futureproof ourselves for the next transition of the internet. Don’t turn it into the same regret you had when you missed out on the early adaptation of bitcoin. It’s never too late to become a part of the fastest-growing community.

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