What is Cryptocurrency ?

Cryptocurrency is a virtual currency secured by cryptography. It is designed to work as a medium of exchange, where individual ownership records are stored in a computerized database. Cryptocurrency is basically a digital asset spread through multiple computers in a shared network. In simpler words, it's digital currency  that you invest and then make a profit over it. Cryptocurrencies are systems that allow for the secure payments of online transactions that are denominated in terms of a virtual "token," representing ledger entries internal to the system itself. All cryptocurrencies combined accounted for about 7% of the world's money. 

 How does Cryptocurrency work? 

A cryptocurrency is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.

Different types of cryptocurrencies?

The first type of cryptocurrency was bitcoin which is currently the most used, popular, and valuable. Bitcoin was first launched in 2009. After Bitcoin, there were many more altcoins introduced such as Litecoin, Peercoin, Namecoin, Ethereum, Ripple and  Cardana. 

Advantages of Cryptocurrency

-Funds transfer between two parties will be easy without the need of third party like credit/debit cards or banks

-It is a cheaper alternative compared to other online transactions

-Payments are safe and secured and offer an unprecedented level of anonymity

Modern cryptocurrency systems come with a user “wallet” or account address which is -accessible only by a public key and pirate key. The private key is only known to the owner of the wallet

-Funds transfers are completed with minimal processing fees.

Disadvantages of cryptocurrency 

-The almost hidden nature of cryptocurrency transactions makes them easy to be the focus of illegal activities such as money laundering, tax-evasion and possibly even terror-financing

Payments are not irreversible

-Cryptocurrencies are not accepted everywhere and have limited value elsewhere

-There is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.