Cryptocurrency, crypto or digital currency is a form of virtual currency. It is an online system of transactions therefore it does not need a central issue of regulatory authority. Here are some interesting facts about cryptocurrency.
What is Cryptocurrency?
It is a digital payment system, and it does not rely on the banking system. It is an online payment system. One can send and receive payment through this method. Crypto is an online database that describes specific transactions. Instead of carrying money in this real world, now a days online payments are making life easy. In the exchange of digital currency, digital customers use digital wallets . Whenever you transfer funds through cryptocurrency, these transactions are note down in a public ledger which you can use later to maintain your currency.
History of Cryptocurrency
The currency is not too old. In 2009, a digital currency introduced as Bitcoin. Mostly it has used for trading, profit and transactions since 2009.
Why is Cryptocurrency known as Crypto?
This currency is used in the advance coding form, which is termed as encryption to verify transaction. This coding involves storing and transmitting data between wallets and to the public ledgers. Infect encryption or coding is used to secure the money.
Is Crypto a Safe Investments?
It is no doubt that crypto attracts most of the peoples. Sometimes its reputation effect due to some scams, hacks, or bugs as an unstable investment. Although the underlying cryptography and blockchain are generally secure with some technical complexity of using and storing crypto assets can be a significant hazard to new users.
What is cryptocurrency trading?
Selling trading is the pricing movement or investing in currency or buying and selling of coins via a CFD trading account. It is an exchange of coins.
CFD trading on Cryptocurrencies
without taking ownership of the underlying coins, CFDs trading enable you to speculate on cryptocurrency price movements. You can go long (buy) if you think a cryptocurrency will rise in value, or short (sell) if you think it will fall.
Cryptocurrencies: an exchange of coins Buying and selling
While buying cryptocurrencies via an exchange, we purchase the coins. Here we need to create an exchange account, put up the full value of the asset to open a position, and store the cryptocurrency tokens in our wallet until these don’t show profit and we get ready to sell.
How Do You Buy Cryptocurrencies?
Coinbase, apps such as Cash App, are some popular crypto exchanges, from where you can purchase currency. Another popular way to invest in cryptocurrencies is through financial derivatives, such as CME’s Bitcoin futures, or other instruments, such as Bitcoin trusts and ETFs.
How to invest in Cryptocurrency?
If you are thinking about investing in cryptocurrency, you might think about buying and holding one or more crypto coins. Firstly, it is easy to buy cryptocurrency directly, and it is probably the most common way to add crypto exposure to your portfolio. secondly, if you come to investing in it, you have a few different options:
Buy cryptocurrency directly
You can choose a direct method to purchase and store one or more cryptocurrencies. You have options ranging from the most established digital currencies like Ethereum and Bitcoin to virtually unknown coins.
Invest in cryptocurrency companies
On the other side you can invest in companies with a partial or total focus on cryptocurrency. Your options include cryptocurrency mining companies, mining hardware makers, companies like Robinhood Markets Inc. (HOOD) and PayPal Holdings Inc. (PYPL) that support cryptocurrency, and MicroStrategy Inc. (MSTR), which holds large amounts of cryptocurrency on its balance sheets.
Invest in a cryptocurrency Roth IRA
If you want to invest in cryptocurrency and also garner the tax advantages afforded by an individual retirement account (IRA), then you can consider investing in a cryptocurrency Roth IRA. Using the services of a crypto IRA provider can also facilitate more secure storage for your cryptocurrency holdings.
Types of Cryptocurrencies
Bitcoin
Bitcoin began in the second quarter of 2007. In August 2008 a website with writing code developed. Ater that in October this currency published as Bitcoin: A Peer-to-Peer Electronic Cash System.
It was first digital currency and still it is most common for digital trading. This currency developed by Satoshi Nakamoto. Although this name was a fictitious name because sometimes a person assumes a name for a particular purpose. Indeed, it differs from their original or true name. Nakamoto was active in the development of bitcoin up until December 2010.
Ripple
Ripple is the leading provider of crypto solutions for businesses that helps the business community and organizations to drive the power of crypto. This system was introduced in 2012. This company is more than Bitcoin therefore it is attached to different banks and institutions for its working.
Ethereum
Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.
List of Cryptocurrency
Here is a list of cryptocurrencies that are most popular
| Bitcoin | Ether | Bitcoin Cash | Litecoin | Dogecoin | EOS |
| Stellar | Cardano | Polkadot | Crypto 10 Index | Uniswap | Chainlink |
Cryptocurrency in Pakistan
Over the time crypto trend is increasing in Pakistan. According to the state bank of pakistan it is General Public notice that Virtual Currencies/Coins (Bitcoin, Litecoin, Pak coin, OneCoin, DasCoin, Pay Diamond etc.) are neither recognized as a Legal Tender nor has SBP authorized or licensed any individual. So, the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan has banned.
FAQ’S
What is Cryptocurrency?
Mostly, It is a digital payment system, and it does not rely on the banking system. It is an online payment system. One can send and receive payment through this method.
How Do You Buy Cryptocurrencies?
Coinbase, apps such as Cash App, are some popular crypto exchanges, from where you can purchase currency. Another popular way to invest in cryptocurrencies is through financial derivatives, such as CME’s Bitcoin futures, or other instruments, such as Bitcoin trusts and ETFs.
Is Cryptocurrency allowed in Pakistan?
No, it has banned in Pakistan. According to the State Bank of Pakistan it is General Public notice foor people, Virtual Currencies/Coins (Bitcoin, Litecoin, Pak coin, OneCoin, DasCoin, Pay Diamond etc.) are neither recognized as a Legal Tender nor has SBP authorized or licensed any individual.