What is Crypto Currency Explained | Complete Details | Technology| Pros and Cons | Popular Crypto Currencies

Crypto Currencies Explained:

Crypto Currencies: 

Hello Comrades! In this particular blog we are gonna know about crypto currencies and it's pros , cons,regulations and what are the technologies behind it... 

Let's know all these things in this post! 

What is meant by Crypto currencies? :

Generally The currency (₹2000,₹500,₹100,₹50,₹20,₹10,₹5,₹2,₹1 paper notes & coins etc.,)what we are using right now is comes under physical currency. Here we can experience the feel of this currency physically. it is a Centralized finance method ie.,This physical currency is monitored by Reserve Bank of India or Others. 

Incase if our currency is in digital form and which is encrypted by a technology called Cryptography then we can call that currency as a Crypto currency. Crypto currency is one of the form of digital currencies, we can use/see this currency virtually only but we can't feel them physically. 

It's one of the Decentralised Finance method . That no one can monitor our transactions. 

Note: Transactions which are done through phone pe, G pay, Paytm etc,. are also comes under digital form of currencies but those aren't comes under Crypto currencies because those aren't encrypted by cryptography moreover those are monitored by some other Organisations. 

Technologies Used:

Cryptography:

Crypto means Secure, Crypto Currencies are encrypted by Cryptography. 

Cryptography is a digital financial technology which encrypts details of our transactions and communications . So that it allows only selective people to read and access the information. 

Distributed Ledgers Technology(DLT) :

It's a one of the financial digital technologies which records our transaction details which are done at the same time in multiple places

Block Chain Technology:

Crypto Currencies are working based on a powerful technology called Block Chain Technology. Block Chain technology keeps the data transparent and similar to all the people who are in the network. So that all members in network can access same information. It's impossible to hack this Crypto Currencies which are encrypted by block chain technology. 

Advantages (Pros) Of Crypto:

•Peer to peer transactions: we can make transactions to anyone directly without involvement of any other third party like debit card, credit card, banks etc,. 

•Payments are Safe and Secured and offers an anonymity

•Online transaction charges are very less compared to any other mode

• It provides a secure wallet with public and private key. Private key is only know to the owner of the wallet

Dis advantages (cons) of crypto:-

• The Anonymity nature of crypto currencies makes some people to be focus on illegal activities such as money laundering, terror financing, drugs, tax evasion etc,. 
• Payments are irreversible
• Crypto currencies are not accepted everywhere
• Most of the crypto currencies are not rooted to any material goods
• Market Volatility is more rather than Stock market
• Anyone can easily Manipulate the crypto values

Some Popular Crypto currencies:-

As per present market cap the top 5 crypto coins are mentioned below

1. Polka dot
2. Ripple
3. Cardano
4. Ethereum
5. Bitcoin

Does Crypto currencies are legal in India? 

Firstly,Crypto currencies are not illegal in India, 

On February 1st in the Union Budget Session 2022 23 our Indian Finance ministress Nirmala Sitaraman announced some regulations regarding Digital assets, those are 1% TDS (Per every Transaction) , 30% Tax on Profits. 

In addition she announced that Reserve Bank of India (RBI) is going to release a Decentralised Crypto coin called Rupee in the Year 2023.

This is the basic information regarding Crypto currencies! Hope you enjoyed the content. 

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