What is cryptocurrency ?

What-is-cryptocurrency

Cryptocurrency is a digital currency that used cryptographic technology and works as a virtual medium of exchange. The most common feature of cryptocurrency is it has no central authority to control the currency and it has no physical form. One can only use it while completing transactions online. Cryptocurrency uses blockchain technology that makes it impossible to counterfeit and maintain the proper integrity of the transaction. 

The history of cryptocurrency is not new. But, the proper shape of that currency comes after a lot of trails. Bitcoin is one of the most common names for cryptocurrency which was introduced by Satoshi Nakamato. There are other cryptocurrencies as well e.g. Namecoin, Litecoin etc. 

Advantages of Cryptocurrency 
Cryptocurrency is a basic type of peer-to-peer transaction. That cryptocurrency does not require any third party to complete any transaction. In the case of traditional currency there is a third party (e.g. banks, financial companies etc.) required to  complete transactions. But in the case of cryptocurrency one can directly transact with the other without any intermediary. 

Disadvantages of Cryptocurrency 
As there is no central authority it has easier access to illegal activities like money laundering and tax evasion. 

How the price is determined ?
The price is determined by supply and demand. This is the basic principle of cryptocurrency. If a cryptocurrency has a high token supply with low demand from its users, then the cryptocurrency’s value will fall. On the other hand, if the supply of a particular cryptocurrency is limited and the demand is high, then the value of the coin will rise.

What can you do with it?
You can do nearly everything using it, remember these all must be done through online. But presently cryptocurrency is an illegal currency in our country. So, don't forget the hassles you may face if you start to use it. 

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