Cryptocurrency | Facts & decode

Cryptocurrency is broadly a system of digital assests, that is formulated making use of encrypted algorithms and advanced techniques. It is a new age digital assest whose existence, security and spcifications are on hands of encryption algorithms. Cryptocurrencies generate units and verify the transfer, securing the network in which the units exist. 

The most important use of cryptocurrencies are in securing online transactions, in the form of units or denominations called Tokens. In today’s world, there are thousand of cryptocurrencies that have emerged. Some of the algorithms are akin to private-public key. Thee tradeable units are solely found in digitalized structure and are not authority- regulated. 

Cryptocurrency- the pattern in which it works

Apart from trading and speculation purposes, cryptocurrency is also widely used in transferring money and value, which is usually not done on exchanges. There are few specific terms thatexplains the working module of cryptocurrency in detail. 

The units of transactions, the Tokens form the hold values. The Blockchain technology maintains all the data behind every transaction and creation of an unit.  The ledger for all transactions are maintained by this block chain, which can be disruptive in quite a few sectors. The mining forms the procedures of verification of every transaction in a cryptocurrency. The main source of income in cryptocurrency is from the returns from trading of a crytocurrency value. 

Cryptocurrency Ban in India

In early 2018, the central bank, that is the Reserve Bank of India (RBI) imposed a legal ban on cryptocurrency trading in India. RBI then denied the existence of many crptocurrencies including Bitcoin, due to the deficit of their physical presence. The ban barraed banks and other financial institutions from carrying out or facilitating any service to the treaders on cryptocurrency exchange. It was a severe panic to all crytocurrency traders and startup comanies, who were left with only peer-to-peer transcation options left, leading them to wrap up their business. This is thus not a legal tender in India. 

Trading Cryptocurrency- buying and selling crytocurrency

The basic formula that operates the trading of cryptocurrency is buying nd seling the tokens of assets or the exchange of units. There are different reputed and widely used cryptocurrency exchange options available in India and abroad. Apart from the exchange policy, assests can also be stored in the form of Cryptocurrency wallets. 

Though the blockchain technology that drives the whole concept of cryptocurrency is independent and also secured but risk factors are never demolished from the world of trade.