What is cryptocurrency?

Cryptocurrency is not tangible, it is not hard coin it is a computer code, a digital asset.  Bitcoin was the first decentralized cryptocurrency which was created in the year 2009.The reason for making cryptocurrency is to create a medium of exchange which is free from banking policies or government influence.There are over 900 cryptocurrencies.Bitcoin has the largest market among the cryptocurrency.The other cryptocurrencies are ethereum, ripple, and litecoin to name a few. It is probably over 80 billion dollar market right now.The terms altcoin is used to refer to any alternative of the Bitcoin but these days they are used to define Digi byte, dash,pivx etc.

How is cryptocurrency created?

A coin is generated by miners or computer programmers.A computer code is produced by programmers and it is produced on demand. It is not due to import /export of a country. If more people want cryptocurrency more will be produced.

What is the value of cryptocurrency?

Like a currency of a country derives its value by exchange rate, treasury notes and measuring it against foreign exchange reserves, Bitcoin is not derived by these ways.The problem with Bitcoin or any cryptocurrency is that value is not backed by the government or central bank, it is derived from a software which few people understands how it works.The reason behind the surge in the price of bitcoin is based on speculation. In the year 2013-2014 where people wanted to know more about it, that means people wanted to buy bitcoins and it started the speculation saga.

How to start?

1.Set up a wallet

2.Put your currency (dollar,euroetc.) In wallet as BTC, etc or LTC

3.Send to exchange

Coinbase.com is one of the sites where bitcoins are traded.

 

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