Imagine you have a conversation with your friend or relative. At some point during the conversation, you may expect someone to bring up Cryptocurrencies. Considering how trending this is, you would like to discuss the topic. But do you really know what Cryptocurrency is, how it works and how secured will be your transactions?
Despite many fears and uncertainty, Cryptocurrency has become a global phenomenon and seems to have a great future because broader markets, institutional investors and banks who were once sceptical are becoming optimistic about digital currency.
Since man evolved, the currency has played a vital and important role in our lives. From the barter system to the modern currency which includes paper currency and coins, credit cards and digital wallets, the world has come a long way. Now as you know, all of these are controlled by banks and the government which means there was a centralized regulatory authority that limited the functioning and flow of paper currencies and credit cards.
Let’s say you are sitting with your colleague in a restaurant where he pays your share of lunch and you would transfer the money online to his account, there are multiple things which could possibly go wrong like a technical glitch or a user’s account being hacked or transfer limit exceeded. Hence, we believe the future of currency is in the hands of cryptocurrency.
What is Cryptocurrency? Curious enough? Basically, it is quite similar to real-world currency functioning without physical representation. Cryptocurrency often called a virtual token, is a digital form of currency as a medium of exchange. This is secured by cryptography using decentralized networks, which helps keep away government interference or manipulation and the whole process is based on blockchain technology.
Let us give you a basic example of how cryptocurrency works. The whole process will cost you nothing more than a couple of minutes. There are thousands and thousands of varieties of cryptocurrencies. Some of the popular ones are Litecoin, Ethereum, Ripple, NEO, and bitcoins. Suppose you have a Bitcoin app and you receive a notification asking for your approval for transferring a certain number of bitcoins. Once approved the request is processed where they verify the identity of the user and if the user has the required balance for the transfer and similar things.
On the completion of verification, the payment is transferred and received by the end-user. Hence, you get away with the problems related to modern banking- no limits to funds transfer, no possible hacking loopholes, and no central point of failure. Before you jump on to making transactions, we highly recommend joining Fintech or financial technology courses.
After the 2018 ban on cryptocurrency was lifted in 2020 by the Supreme Court the Indian market became a dynamic crypto trading industry. Let us take you through the most popular ones amongst the beginners so far:
WazirX: Facilitating a P2P transaction capability, this is an Indian cryptocurrency exchange that provides a user-friendly platform, fast transaction speed and world-class security as its key features. Here you engage in Bitcoin trading, Ripple, Ethereum, Litecoin and many more. This app also charges you in INR while depositing currency.
CoinDCX: This is one of the most popular ones among beginners in India without any deposit charges. Again, a very user-friendly platform and it is super simple to build your portfolio with immediate transactions.
Binance: This is also a competent platform without any depositing charges and they offer you to use the platform on both, web and app. You can set your own rates and take advantage of the platform’s zero fees.
Zebpay: This platform claims to be profitable from April 2020. It has been in existence since 2014 and has attended over 3 million customers. One feature here which stands out is an option to disable outgoing transactions. They also have a deposit charge like WazirX.
Cryptocurrencies are quite distinct because you can experience faster international transactions, barely any transaction costs, you don’t have to wait in the queue and fill up the form to enrol yourself to be able to use the services and is accessible 24/7. To learn more about how cryptocurrency works we suggest you take financial technology courses.