What is Crypto Currency ?

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What is Crypto Currency
What is Crypto Currency

Crypto currencies is a digital currency which is encrypted by cryptography that controls the additional currencies generation and validate the transaction.
As such this currency is not governed and managed by any government.

It is based on decentralization method.
It is also defined as medium of exchange of currency in digital format as like rupee or us dollar.
In traditional method the two parties are using fiat currency a involvation of third party organization is occur. Usually a central bank (third party) assure about the currency that is it genuine or not and the transaction is recorded.

But in crypto currencies a chain of private computer involves as a third party and authenticate the transaction by solving complex cryptography puzzles.
As for example of you want to transfer 1 unit of crypto currencies then it will be authenticated by the private computers network. Then the most common question is that why people authenticate the transaction by solving puzzles and wasting their electricity in running the computer.
The answer is for solving puzzles these systems get rewarded as in form of crypto currencies. And this whole process is called crypto mining.
The technology behind the transaction of crypto currencies is called block chain.
Satoshi Nakamoto – the person (or a group of people) who introduce this system of accounting aftermath of 2008 financial crisis.
He had prepared the idea where the transaction and the value of transaction amount will be recorded digitally on public available and open a ledger that contains all the transaction ever made but in an anonymous and encrypted form.
This ledger is called the block chain.
How to buy crypto currencies
There are two ways of buying crypto currencies
1. Crypto mining
2. Peer to peer transaction
3. Exchange
1. crypto mining
You can refer our article for getting more about the crypto mining.
2. Peer to peer transaction
In this method you request or find people that give you crypto currencies in exchange of other currency.
3. Exchange
In this method you have to register on website which facilitates transaction of crypto currency in different currency.

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