Cryptocurrency (aka “crypto”) is the digital money on the internet. Technologists think it has the potential to replace your dollar. Even in India, crypto trading is gaining popularity day by day. If you have not heard about the term "cryptocurrency", Bitcoin is a cryptocurrency.
In this article, we will guide you through the basics of cryptocurrencies which will help you grasp the most important question “what is cryptocurrency”.
What is Cryptocurrency?
Cryptocurrency is a digital asset designed to work as a medium of exchange. It uses strong cryptography to secure financial transactions. You can send or receive Cryptocurrency to your friends. You do not need the approval of a bank or the government to do that. It stores all the transactional data into a secure place called Cryptocurrency Blockchain. You can think of cryptocurrencies as Paytm but without the need of the Paytm company. This is the reason that it has a meaning. Cryptocurrencies are the new form form of money.
People also refer cryptocurrencies to virtual currency or digital money. In short, it can also be called as crypto token.
Time to educate your friends about the meaning of cryptocurrency.
What is the meaning of cryptocurrency in hindi?
Cryptocurrency का Hindi में meaning:
Cryptocurrency एक ऐसी डिजिटल money है जिसे आप किसी को भी कुछ ही मिनट्स में भेज सकते है। इसको भेजने के लिए आपको किसी बैंक से नहीं पूछना होता है। ये बहुत ज़्यादा secure है। आप ऐसा समझे की ये एक ऐसा रूपी है जो पूरी दुनिया में कही भी इस्तेमाल किया जा सकता है। और अगर कल के दिन सरकार ख़त्म भी हो जाए (जैसे अभी Venezuela में हो रहा है) फिर भी Bitcoin पर उसका direct impact नहीं आएगा। Cryptocurrency को virtual currency या digital money भी कहा जाता है
Cryptocurrency को आप ट्रेडिंग के लिए भी इस्तेमाल कर सकते है। ट्रेडिंग करने के लिए Coindelta पर जाए और अकाउंट बनाए. Crypto India सबसे ज़्यादा पॉप्युलर 2017 में हुआ था.
Who invented Cryptocurrency?
In 2009, Satoshi Nakamoto (still unknown) invented Bitcoin (BTC). Bitcoin is the first cryptocurrency. You can use Bitcoin like you use rupee. You can pay bills or hold it as an investment asset. You can trade it or use it as a store of value.
How is the price of a cryptocurrency determined?
Demand and supply determine the price of any asset. Gold is so valuable today because its scarce on Earth (limited supply). There is a huge demand for Gold such as for making jewelleries and research. That is why Gold is more valuable than silver today. Cryptocurrencies also derive their values from the demand and supply.
What is the supply of Cryptocurrency?
The supply of cryptocurrencies varies. For example, Bitcoin and XRP have limited supply while it's unlimited for Ethereum.
Why is there a demand for cryptocurrencies such as Bitcoin?
Economists and Technologists see cryptocurrencies as the virtual currency for the digital world. The rupee that you spend today using UPI or Paytm is digital. You do not know whether it exists in the Bank or not. It is only a number in the bank database. But it exists because of our belief into it.
You can also use Bitcoin to make the same payments as you do with Rupee provided everyone accepts it. Bitcoin is a secure version of Rupee in a way that no one controls it, it's decentralised, and secure. The transactions are public which can avoid bank frauds due to hidden transactions. The transaction cost is also very low. You can send Bitcoin to anyone in the world within few minutes. And above all, you own the money and not the bankers.
All these attributes of Cryptocurrencies make them valuable like Gold.
"Long Bitcoin, short the Bankers" - Pomp.
What are the top cryptocurrencies (list form)?
Every cryptocurrency is unique but they have on thing in common. Investor thinks they are worth billions.
Here is a list of cryptocurrencies (top):
Bitcoin (BTC): Bitcoin was launched in 2009. Bitcoin is the largest and most popular cryptocurrency. Almost everyone has heard about Bitcoin.
Ethereum (ETH): Launched in 2015. It lets developers write computer programs called smart contracts. Most initial coin offerings (ICOs) so far have been based on Ethereum smart contracts. It is the second largest cryptocurrencies by crypto market cap.
Ripple (XRP): It was launched in 2017. It is the third largest cryptocurrencies by crypto market cap.
The list of all cryptocurrencies can be found at CoinMarketCap. Few notable cryptocurrencies (other than the list above) are Zilliqa, Binance Coin (BNB), EOS, Monero, IOTA and NEO.
How is cryptocurrency different than the digital money (virtual currency) such as Paytm?
There are few factors on which cryptocurrency is different than Paytm:
Truly Global: You can only use Paytm to pay inside India. Cryptocurrencies can be used anywhere in the world. It's truly a global currency.
Decentralized: Paytm controls your money. With Bitcoin, you control your money. There is no company that controls Bitcoin. Your Bitcoin is your Bitcoin. Your Paytm money is Paytm's money.
100% uptime: Paytm server can go down sometimes which can make your money inaccessible. Bitcoin has never gone down. It means you always control your money.
Privacy: Most cryptocurrencies provide a certain level of anonymity to your transactions. You do not need to disclose where you spend your cryptocurrencies.
Freedom: This is the overall most important point that cannot be stressed enough. Bitcoin lowers the barriers for all to participate in global commerce. Thus, Bitcoin enables true globalisation that is inherently inclusive and egalitarian. Although how this technology is implemented is ultimately up to us - the users.
What is the market cap of a crypto?
The market cap of a crypto is defined as the product of its supply and price. For example, if the price of XRP is $0.5 and the supply of XRP is 100 billion, the market cap of XRP will be $50 billion.
What is the total market cap of crypto?
The total market cap of cryptocurrencies is the total value combined. It is the sum of the market cap of all the cryptocurrencies. As of Feb 18, 2019, the total market cap of crypto was $126 billion.
Which cryptocurrency has the largest market cap?
As of Feb 18, 2019, Bitcoin had the largest market cap among all the cryptocurrencies. Its market cap was $65.7 billion. Bitcoin holds 52% of the total market cap of crypto.
What can kill Bitcoin?
Bitcoin runs on Internet. It's purely decentralized and controlled by people. To kill Bitcoin you will have to kill the internet. It can be controlled to an extent on a very local level. But it cannot be shut down globally unless electricity is shut off everywhere in the world.
Where can you buy crypto in India?
To buy crypto in India, please go to Coindelta and create your account. You can start trading with only Rs. 100. Coindelta is the most trusted & secured cryptocurrency exchange in India. You may trade cryptocurrencies in India with INR using your Indian Bank Account.
Which is the most popular crypto in India?
XRP is the most popular crypto in India. Its price, as of Feb 18, 2019, is Rs. 22.17 (Coindelta XRP market).