The first time I heard about cryptocurrency, the desi in me automatically went "tch, tch tch, all this is nonsense." However, once the millennial me came back to her senses, I decided to break down this complex rocket science-y thing for myself and at least know what's the huge hue and cry is all about!
So here goes nothing:
What is cryptocurrency?
Simply put, cryptocurrency is a digital asset. It is a form of payment that can be exchanged online for goods and services. So essentially what you can do is, you can transfer your traditional, non-crypto currency money —digitally! But wait, there's more because when cryptocurrencies become "mainstream," you may be able to use them to pay for things electronically, just like you do with traditional currencies. Are you getting a hang of this? Hold on, we're getting there buddy.
The history of crypto! Please don't yawn.
Pretty sure everyone knows this, but the first-ever crypto was, *drumroll* Bitcoin!
Now, what sets it apart?
What sets cryptos apart is the technology behind them. cryptos work using a technology called blockchain, which is a decentralized technology spread across several computers that can manage and record transactions. The best bit, and what piques people's interest is the security of this technology, so your inner desi can calm down already.
Why are they so popular?
Cryptos appeal to people for various reasons. Supporters regard cryptos such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable and are out of their reach. Some like the fact that crypto removes central banks from managing the money supply since over time banks tend to reduce the value of money via inflation and stuff. Whereas others like the technology behind cryptos, the blockchain, like mentioned earlier, because it is a decentralized processing and recording system, and can be more secure than traditional payment systems.
Real talk: Are they a good investment?
Cryptos may go up in value, but many investors see them as mere speculations, not real investments because they generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
The long and short of it: How do I buy, sell, or invest?
Investing in crypto doesn't have to be as complicated as we may believe it to be. And with the right platform, we can get the best returns. For that, I'd suggest you check out CoinSwitch Kuber for a secure and fast crypto trading experience, where you can begin buying and selling at Rs. 100! The platform has recently crossed 10 million users with successful investment stories. You can also check out their KuberVerse section where you can get all the information you need related to crypto!