What are Crypto-currency and Issues Related to It?

Cryptocurrency was established to increase the safety of transactions It is a type of digital money. In such transactions, information or transaction data is turned into codes. It ensures that money is correctly transmitted. Bitcoin is a decentralized cryptocurrency. The transaction is irreversible and cannot be canceled.

Types of cryptocurrency:

1. Transactional:

It is a distinct form of cryptocurrency. It serves as a medium of exchange for money as well as services. Bitcoin and Litcoin are two examples.

2. Platform:

Platform cryptocurrencies have been using to launch new cryptocurrencies and to develop marketplaces. Platform cryptocurrencies serve as the foundation for several other applications in the future. Ethereum is also the foundation for several cryptocurrencies.

3. Utility:

A utility cryptocurrency is intended to be used for a certain purpose. A utility cryptocurrency like Ripple (XRP) is an example. Ripple is a platform that allows banks and institutions to transfer fiat money cost-effectively and efficiently.

Use of cryptocurrency:

1. Fast, secure, and low-cost.
2. There are fewer risks.
3. Freedom to transact.
4. Nature’s decentralization

Cryptocurrency Wallet:

It’s a safe digital wallet for storing, sending, and receiving digital money. A simple bitcoin wallet has two cryptographic keys: public and private. The keys may be used to keep track of who owns what, as well as receive and spend cryptocurrency.

Benefits:

1. It’s simple to carry.
2. Simple, quick, and safe
3. Inflation is low.
4. Everyone has access.

Disadvantages:

1. There is a lack of awareness and understanding.
2. Vulnerable to scams.
3. Cyber hacking is unregulated and uncontrolled.