Physical currency has been a part of human life for approximately the last 3000 yrs. In this era of technology which has revolutionised almost everything it touched; money was not to be spared.
What is Crypto?
Crypto has been a buzz word for the last couple of years. There’s surely a lot of debate around it but we want to know what it really is and how it works. Cryptocurrency is basically digital currency. Just like you can spend dollars and euros, you can buy goods and services with crypto. The only catch is that it doesn’t physically exist in your wallet. Think of it like a coupon or token that you get digitally.
Nowadays you can buy crypto easily at crypto exchanges in exchange for actual currency. Crypto is extremely popular within the investment sector because of its lucrative returns-sometimes. Value of crypto is always fluctuating just like stocks in the stock market. Usually governments regulate stock markets. But no entity regulates crypto. Cryptocurrency market is the most genuine example of free-market you will find today. Bitcoin is the most popular cryptocurrency. It costs more than $45k as of September 2021.
How does it work?
Cryptocurrency uses blockchain technology to keep track of transactions. It is pretty safe as it is based on a decentralized system spread over several computers. Now there have been a lot of speculations about cryptocurrencies whether they are a good investment or not. They generate no cash flow so these currencies cannot be stabilized. They basically follow ‘the greater fool’ theory of investment. This theory says that someone else has to pay more than you, for you to benefit. People buy them because they see a potential of making profit in the future. Some of the most popular cryptocurrencies include Bitcoin, Etherium, Dogecoin etc. There are plenty of online brokers where you can buy crypto. But before you do, you should calculate risks. Because crypto market is highly volatile and it comes with risks involved.
