Cryptocurrencies are digital assets that use cryptography, an encryption technique, for security. Cryptocurrencies are primarily used to buy and sell goods and services. People use cryptocurrencies for pseudonymity (near-anonymity), peer-to-peer purchasing (elimination of financial intermediaries), and some other “smart,” programmable capabilities that Bitcoin currently does not possess.
Currently, there are two major categories of cryptocurrencies: those utilized for the purchase of goods and services and those that allow for the creation of “smart contracts,” which are agreements that enforce themselves via code rather than courts. There are over 1,000 cryptocurrencies in existence right now (called “altcoins”); over 600 have market capitalizations of over $100,000.
- Bitcoin: Released in 2009 by someone under the alias Satoshi Nakamoto, Bitcoin is the most well known of all cryptocurrencies. Despite the complicated technology behind it, payment via Bitcoin is simple. In a transaction, the buyer and seller utilize mobile wallets to send and receive payments. Although Bitcoin is widely recognized as pioneering, it is not without limitations. Not only is Bitcoin slower than some of its alternatives, but its functionality is also more limited.
- Ether & Ethereum: Often used interchangeably, Ethereum is a platform that allows for relatively easy creation of smart contracts while Ether is a “token” used to enter into transactions on the Ethereum blockchain. Put simply, smart contracts are computer programs that can automatically execute the terms of a contract. They function similarly to the “IF (then)” Excel function: When a pre-programmed condition is triggered, the smart contract executes the corresponding contractual clause.
- Litecoin: Launched in 2011, Litecoin functions similarly to Bitcoin in that is also open sourced, decentralized, and backed by cryptography. However, it was intended to serve in a complementary role to Bitcoin, “the silver to Bitcoin’s gold.” Litecoin has a faster block generate rate and faster transaction confirmation.
- Dash: Released in 2014 as “Darkcoin,” Dash has since re-branded and offers more anonymity for its users due to its decentralized mastercode network. It utilizes something called a “Masternode” network which has a more robust foundation than Bitcoin.
- Zcash: Released in October 2016, Zcash is a relative newcomer in the space. However, there are claims that it is the first truly anonymous cryptocurrency in existence due to its employment of zero knowledge SNARKS, which involves no transaction records whatsoever. The technology ensures that, despite all the information being encrypted, it is still correct and that double spending is impossible.
- Monero: Monero possesses unique privacy properties. For example, Monero enables complete privacy by leveraging a technique called “ring signatures.” It’s become popular in the dark web black market, where users purchase everything from drugs to firearms.
Tell me more about it
Ok, you need to know a few terms to understand cryptocurrency better.
Public Ledgers: All confirmed transactions from the start of a cryptocurrency’s creation are stored in a public ledger. The identities of the coin owners are encrypted, and the system uses other cryptographic techniques to ensure the legitimacy of record keeping. The ledger ensures that corresponding “digital wallets” can calculate an accurate spendable balance. Also, new transactions can be checked to ensure that each transaction uses only coins currently owned by the spender.
Transactions: A transfer of funds between two digital wallets is called a transaction. That transaction gets submitted to a public ledger and awaits confirmation. Wallets use an encrypted electronic signature when a transaction is made. The signature is an encrypted piece of data called a cryptographic signature and it provides a mathematical proof that the transaction came from the owner of the wallet. The confirmation process takes a bit of time (ten minutes for bitcoin) while “miners” mine. Mining confirms the transactions and adds them to the public ledger.
Mining: It is the process of confirming transactions and adding them to a public ledger. To add a transaction to the ledger, the “miner” must solve an increasingly-complex computational problem (like a mathematical puzzle). Mining is open source so that anyone can confirm the transaction. The first “miner” to solve the puzzle adds a “block” of transactions to the ledger. The way in which transactions, blocks, and the public blockchain ledger work together ensure that no one individual can easily add or change a block at will. Once a block is added to the ledger, all correlating transactions are permanent, and they add a small transaction fee to the miner’s wallet (along with newly created coins).
Can you give me some examples?
Yes, some of the examples of cryptocurrency are Bitcoin, Litecoin, Ethereum, Bitcoin Cash, IOTA,Darkcoin, Ripple, Tether, etc.
In India there are these are the 10 Top best Exchanges where you can buy cryptocurrencies of your choice.
1) BuyUcoin :
BuyUCoin is the brainchild of Atulya Bhatt, Shivam Thakral, and Devesh Aggarwal and came to existence in June 2016. The platform quickly became an industry leader in the field of domestic cryptocurrency exchange markets and soon amassed a huge community of investors and crypto enthusiasts. The platform was one of the first crypto exchanges that introduced the peer to peer transaction model and provides its users with multiple cryptocurrencies to choose and trade with. The platform is specifically created to ensure ease of use for both experienced investors as well as interested users who are new to the concept of crypto trading. BuyUCoin charges a 0 percent fee for their OTC desk while the transaction fees vary according to the cryptocurrency that is being traded. Another notable feature of the platform is that it doesn’t charge any money for INR withdrawal from the user’s wallet. Since its inception, the platform has conducted $50 million USD worth of trade and supports more than 30 cryptocurrencies with more on the way to being inducted into the platform.
Click to Make Account on Buyucoin:-
WazirX is considered as an underdog champion in the field of domestic cryptocurrency exchange platforms. The platform was created in 2017 and soon gained huge popularity among investors and users. The platform conducts regular security audits to ensure the safety of its user’s investments and keep the platform safe and secure. The platform also provides its users with a peer to peer transaction ability and maintains a system that is capable of handling millions of transactions and can scale up the infrastructure to meet the rising demands. The fee structure of is minimum and is usually between 0.1 percent to 0.2 percent. WazirX is also available on 5 different platforms, thus ensuring that users on every domain are capable of accessing their exchange.
Click to Make Account on wazirx:-
Click to Make Account on CoinDcx:-
BitBNS is the brainchild of a group of IIT alumni who happen to be crypto enthusiasts too. The platform was created in December 2017. The platform also hosts a peer to peer transaction capabilities and also allows users to lend or borrow their assets to increase their chances of gaining additional profit. Over the course of time, the platform introduced stop-limit orders so that users can minimize their losses while trading on the platform. The platform deals with a vast array of cryptocurrencies and hence allows its users a plethora of cryptocurrencies to choose from without changing their trading platform. BitBNS’s transaction fees vary according to the 30-day trade volume and the BNS balance that is available in the user’s wallet. The fee is structured in 11 different levels according to the aforementioned factors and the range of the fee usually ranges from 0.03 percent to 0.25 percent.
Click to Make Account on BitBNS:-
Colodax was created in the year 2017 by the same development team that created the platform CrypDates. The platform aims at providing its users with fast transaction speeds and trade executions. Colodax also utilizes a robust security system to keep the assets of their users safe by using cold storages and wallets that are spread all over the country. The platform is famed for providing extremely fast deposits and withdrawals on their platform by utilizing an automated monitoring platform to expedite transactions. The fee structure of the platform is quite detailed and has different transaction fees for each cryptocurrency that the platform deals with. The platform also has different fee structures according to the trading volume of the user on a 30-day basis. They also launched an app on the mobile to increase accessibility of their users.
Click to Make Account on Colodax:-
Coinswitch is renowned for having a vast array of cryptocurrencies that the platform provides its users to choose from. The platform hosts over 100 + cryptocurrencies on its platform and ensures that it is relatively easy to use so that new investors can go through the procedures with relative ease. The platform charges a transaction fee of 0.49 percent and the rates vary with the exchange medium that is selected for the transaction. The platform also released another version of their platform named Coinswitch Kuber which is comparatively user friendly and also has an app on the Android play store and the Apple store as well. The platform also provides the ability to conduct transactions using a number of fiat currencies and via credit/debit cards too.
Click to Make Account on Coinswitch–
Giottus is another domestic cryptocurrency that was created with an aim to provide zero downtime and high processing speed to its users. The platform is internationally recognized for its ability to handle almost 50 thousand transactions per second while guaranteeing stability even when millions of orders are placed at once. It is also one of the few platforms and possibly the only one in India that has implemented the stop-loss methodology, thus helping its users to automatically cut losses and drive up the profits whenever necessary. Despite creating an excellent platform, Giottus only trades in Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash. Although these are cryptocurrency giants, it limits the potential of both the customers and the platform’s ability to grow. The platform has a decent transaction fee schedule of 0.25 percent on every buy order and 0.15 percent on every sell order.
Click to Make Account on giottus–
Zebpay is one of the major domestic players in the field of online cryptocurrency exchanges. The platform was developed in the year 2015. The company had to close its operations after the RBI’s ban on cryptocurrency trading but soon resumed it when the Supreme Court ruled against it. Zebpay has developed a huge clientele over the years and has served almost 3 million users till now. Zebpay introduced a detailed fee structure which is divided into 3 different parts. The Maker fee at 0.15 percent is charged when the order that is placed isn’t immediately matched, The Taker fee at 0.25 percent is charged when the order is executed immediately, and the Intraday fee at 0.10 percent which is charged on every transaction that is conducted after midnight. The platform also charges a 1.75 percent commission on transactions done with net banking. The platform also provides a clutter-free and easy to use interface that can be operated easily even by greenhorn users who are new to the concept of crypto trading. The platform adheres to high levels of security measures such as storing coins in cold wallets that are air separated and located in different cities and countries. The platform also implemented firewalls and has its own security protocol system named Omnitrixx.
Click to Make Account on Zebpay–
Unocoin is one of the oldest domestic cryptocurrency trading and exchange platform (created in 2013) that caters specifically to the citizens of the Indian Subcontinent. The platform was created before the Supreme Court’s decision to uplift the ban on cryptocurrency trading and hence faced a lot of flak from the Reserve Bank of India and other financial institutions shunned it too. The platform charges a fee of 0.7 percent on every transaction that is conducted on the platform. But after a minimum usage of 60 days and a significant transaction volume is detected from the user’s account, the user is automatically upgraded to ‘Gold Membership’ in which the transaction fees drop to 0.5 percent. In order to protect the investments of its members, Unocoin stores all the cryptocurrencies in multiple addresses that are connected to offline storage on a computer that is never connected to the internet. Unfortunately, the platform only trades in 3 cryptocurrencies, Bitcoin, Ethereum, and Tether. This limits the possibilities of expansion and reduces the cryptocurrency options for its users to choose from. The platform also created an app so that the users are provided with more accessibility.
Click to Make Account on unocoin:-
Paxful is a peer to peer marketplace that solely trades in Bitcoins. Although this might prove as a liability to Paxful and its users as many other altcoins like Ethereum and Litecoin are gaining huge popularity among the crypto community. The platform secures its user’s transactions by holding their Bitcoins in their secure escrow until the transaction is complete. The platform also has a system of trust factor that helps other traders and users identify reliable sellers on the platform. Although the platform is quite known in the Bitcoin community, it is rendered useless for investors who are looking forward to diversifying their investments in other cryptocurrencies. Paxful provides its customers with zero transaction fees for the first five transactions. After that, the platform charges a fee of $1 USD on every transaction or 1 percent of every transaction, whichever is greater, that occurs on the platform.
Click to Make Account on paxful
How does a Cryptocurrency work? What is Cryptocurrency and how to use it: Everything you need to Is Cryptocurrency a good investment? Which is the best Cryptocurrency? Is Bitcoin a Cryptocurrency? How long does it take to mine 1 Bitcoin? Is crypto dead?Where can I buy crypto?How many Bitcoins are left?How do I start mining bitcoins?Are Bitcoin miners worth it?#7: CoinSwitch.#1: WazirX. WazirX has scored a 5-star rating among investors for its renowned features and excellent support. …#2: CoinDCX. …Bitbns#3: . … #4: Remitano. …#5: Giottus. … #6: Cashaa India. …Bitcoin Investment and 7 Local Best Crypto Exchanges in India