Cryptocurrency (Cryptocurrency) is a digital currency. We can not touch or touch this. This can only be seen as value in digital wallets. It was created for high-speed money transfer between countries.
Bitcoin was the first cryptocurrency to be created. The current value of a bitcoin is about Rs 32,62,000. There are currently over 8000 cryptocurrencies. Cryptocurrencies are created by a technology called black chain. Black chain technology is more secure. It is impossible for hackers to hack this. Anyone familiar with Black Chain technology can create new cryptocurrencies.
Is it possible to trade or invest in cryptocurrency?
Trading and investing in the stock market in cryptocurrency can be done in the same way. Just as there are brokerage sites like Zerodha and Upstox in the stock market , there are sites like Wazirx in India to buy and sell cryptocurrency . This includes wallets and exchanges. We can buy and sell cryptocurrencies through exchanges. Purchase cryptocurrencies can be stored in wallets.
Advantages of Cryptocurrency Trading:
In the stock market we can only trade five days a week and at market time. But unlike the stock market, cryptocurrencies can be bought and sold 24X7 all day. So we can sell it at any time and convert it into Indian Rupees.
Cryptocurrencies will come into our account as soon as we purchase them. We can sell immediately. This can lead to higher profits in the short term. Its value can double in a single day. In this we can trade with a small amount of money. For example you can buy coins with a number of 0.0001.
Disadvantages of Cryptocurrency Trading:
The value of cryptocurrency is highly volatile. It is therefore a high risk business. Not only will it double in a single day but its value is likely to halve in a single day. It is like the shares of companies in the stock market that change its value for no apparent reason without changing depending on the profit and loss of that company. A few months ago, Tesla’s president Ellen Musk reportedly backed Bitcoin and invested in it. Currently its value has dropped significantly.
The rupees we have are approved by the government and the Reserve Bank. But cryptocurrencies are not approved by any government or bank. Unlike stock market brokers, cryptocurrency exchanges are prone to misappropriation by investors. The laws for this are not yet universally defined.
10 Popular Cryptocurrencies:
3. XRP Ripple
6. USD Coin
10. Bitcoin Cash