What is cryptocurrency, how does it work and how to buy it? Learn everything here

What is cryptocurrency, how does it work and how to buy it?  Learn everything here
  • Cryptocurrency is a type of digital or virtual currency.
  • The first cryptocurrency is Bitcoin, which started in 2009.
  • Cryptocurrencies are based on the blockchain, in which transactions are recorded on a public ledger.

Cryptocurrency (cryptocurrency) which is commonly called crypto-currency or crypto. These are digital or virtual currencies, in which cryptography is used for secure transactions. Cryptocurrencies are not issued by any central agency or regulating authority. Rather, it is based on a decentralized system, in which a record of each transaction is kept and a new unit is issued. Here we give you detailed information about cryptocurrency.

What is cryptocurrency?

Cryptocurrency is a digital payment system in which the transaction is not verified by the bank. It is a peer-to-peer system through which users can make payments to anyone at any time. Along with this, users do not need to carry currency in physical form or exchange currency in physical form. Instead, payments in cryptocurrencies take place through specific transactions, in which the payment is entered into an online database. Whenever someone transfers cryptocurrency funds, the transaction is recorded in a public ledger. Cryptocurrencies are stored in digital wallets.

Cryptocurrencies get their name because of the encryption they use to verify transactions. This means that from storing the cryptocurrency in the wallet to the transaction, advanced level coding has been used. The main purpose of encryption is to provide security and safety. Bitcoin (Bitcoin) is the most famous and the first cryptocurrency which started in the year 2009.

How does cryptocurrency work?

Cryptocurrencies are based on a public ledger called a blockchain. In this, transaction records of all currency holders are updated. Mining is the process of preparing cryptocurrency units, in which complex mathematical problems are solved to generate coins, for which computers are used. Users can buy cryptocurrencies with the help of agents. They can be stored and spent using cryptographic wallets.

If you have cryptocurrency, you don’t have anything physically. You have a key, through which you can pay with your cryptocurrency. Although bitcoin has been in use since 2009, the use of cryptocurrencies and blockchain technology in financial matters is growing rapidly. It is possible that its use may increase in the future. This technology is used in the transaction of bonds, stocks and other financial assets.

examples of cryptocurrencies


Bitcoin was established in the year 2009. It is the first and most famous cryptocurrency.


The most popular cryptocurrency after bitcoin is Ether (ETH) or Ethereum, which is based on the blockchain.


Litecoin is also one of the popular cryptocurrencies. Litecoin is known for its innovation, fast payment and transaction process.


Ripple is a distributed ledger system that was established in 2012. Ripple is used to track different types of transactions, not just cryptocurrencies. Ripple’s developer company works with different banks and financial institutions.

Non-Bitcoin cryptocurrencies are commonly referred to as “altcoins”.

How to buy cryptocurrency?

You have to follow some steps to buy cryptocurrency

Step 1: Platform selection

First of all, you have to decide which platform you want to choose. You can choose between a traditional broker or a cryptocurrency exchange.

Traditional Broker : Nowadays many online brokers offer the option to buy or sell cryptocurrencies. These brokers also offer options on bonds, stocks and other financial assets along with cryptocurrencies.

Cryptocurrency Exchange: Exchanges are also a good option for buying cryptocurrencies. These exchanges offer cryptocurrency, wallet storage, interest account options.

Before choosing these platforms, you should see how much they are charging and what are the features you are getting in them.

Step 2: Fund the account

Once you have chosen the platform, the next step is to fund your account so that you can start trading. Most crypto exchanges allow users to buy crypto using their debit or credit cards using fiat (government-issued) currencies such as the US dollar, British pound, or euro. Buying crypto with a credit card is considered risky, and some exchanges do not support credit cards. Cryptocurrencies are highly volatile, so it is not a good idea to buy them with a loan. Some platforms also accept transfers and wire transfers. Also read: Hackers stole more than 2,60,00,000 cryptocurrency, the biggest theft of the year!

Step 3: Placing Order

After funding the account, you have to place an order for cryptocurrencies on the web or mobile platform of the broker or exchange. Along with this, users can also invest in crypto currency through fintech apps such as PayPal, Cash App, and Venmo. Through these apps, users can buy or sell crypto currency.

How to store cryptocurrency?

Once you have bought cryptocurrency, you need to store it safely and protect it from hackers or thieves. Typically, cryptocurrencies are stored in crypto wallets, which are physical devices and online stores. Along with this, some crypto exchanges also provide wallets to the users. There are two types of wallets used to store cryptocurrencies – hot wallets and cold wallets. Also read: Crypto Crash: Terrible fall in the crypto market, you also have money, so save it

Hot Wallet Storage: Online software is used to store cryptocurrencies in a hot wallet. For this, users are not charged any kind of charge.

Cold Wallet Storage: In this, offline electronic devices are used to store cryptocurrency. Users have to pay for this wallet.

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