Crypto currency is online money. It’s not paper money like the rupee or dollar. It exists only on the internet and makes use of special technology named block chain to secure and safeguard it.
The first and most known crypto currency is Bitcoin, which established in 2009. Now there are thousands of other crypto currencies such as Ethereum, Solana, and Tether.
How Does It Work?
Crypto currencies are kept in virtual wallets. You can send and receive them with your phone and computer online with Internet connection. All the transactions are stored in a public register called a block chain, which is extremely difficult to hack.
Unlike traditional money, crypto currencies have not any bank or government controlling system. They are decentralized, i.e., no single person or organization is the boss.
Why People Use It?
- Fast and inexpensive to send money, even internationally
- No bank account is needed to use it
- Some individuals purchase crypto to invest and make profit
- Available to anyone with internet
What Are The Risks?
- Prices can increase or decrease very quickly (high risk)
- Some crypto projects are fake
- If you forget your wallet password, you can lose your money
- Not legal or regulated in all nations
What’s Next?
Most companies now accept crypto currency. Other nations are creating their own digital currency. Crypto could become more popular in the future, but governments want to create good rules to protect people anyway.
Conclusion:
Crypto currency is a new type of money that is quick, electronic, and accessible to all. But it also poses dangers, so we need to use it cautiously.