A Dummy's Guide To Understanding Cryptocurrency in 2022

 In case you haven't been living under a rock, chances are you've heard of the term 'cryptocurrency.' Over 10 crore Indians - mostly between the ages of 21-35 - are currently investing in various cryptocurrency assets making it the country with the largest number of crypto holders globally, even ahead of the US and Russia.

What is cryptocurrency?

Cryptocurrency is basically a decentralized digital asset that works on the foundations of blockchain technology. Cryptocurrency came into existence as an alternative to standard currency issued by governments, meant to be used over the internet. Bitcoin was the first cryptocurrency, launched back in 2008 by a pseudonymous Satoshi Nakamoto and still remains the biggest cryptocurrency in terms of market capitalization and influence.

Through a white paper, Nakamoto described this project of his as "an electronic payment system based on cryptographic proof instead of trust." Ever since, Bitcoin's Lost Cryptocurrency Retrieval has fuelled the existence of hundreds of other cryptocurrencies like Ethereum, Litecoin and Cardano, collectively referred to as altcoins - meaning alternatives to bitcoins. Today, there are about 5,000+ cryptocurrencies circulating in the market. In case you haven't been living under a rock, chances are you've heard of the term 'cryptocurrency.' Over 10 crore Indians - mostly between the ages of 21-35 - are currently investing in various cryptocurrency assets making it the country with the largest number of crypto holders globally, even ahead of the US and Russia. in fact India's crypto market grew by 641% over the last year and continues to grow further as newer crypto exchanges and cryptocurrencies become available to Indian investors Indian investors.. But just in case you haven't been in the knowhow of this entire cryptocurrency tsunami cryptocurrency tsunami, we'll help you understand the basics so you can get started too.

What makes cryptocurrency different from the money in my wallet?

Cryptocurrency is a decentralized currency which means that there is no central authority that manages and maintains its value. The money in your wallet is issued and regulated by the central bank of your country. This is the Reserve Bank of India in India, the Federal Reserve in the US and the Bank of England in the UK. All currencies of such nature are termed as fiat currency. Cryptocurrency, in contrast, is managed by a network of computers across the internet. You can use cryptocurrency to pay for goods and services wherever permissible, or can invest in it like you would in other digital assets like stocks and bonds.

Cryptocurrency is not yet a widely accepted medium of transactions but countries like El Salvador and New Zealand have positively passed legislations allowing for official uses of cryptocurrency such as making it legal tender or allowing employers to pay salaries in cryptocurrency.