There was a time when there was no currency in the world. Only goods were exchanged for goods. But after that notes and coins came into existence. And the way of doing business changed completely. Today these notes and coins are our main currency. But apart from this there is also a currency, which is completely digital. It is called Cryptocurrency . But the question is, what is this cryptocurrency after all? And how does it work? Also what are its advantages and disadvantages? Let us know in detail.
Today every country has its own currency . Like India has Rupee, America has Dollar, Saudi Arabia has Rial. Similarly, other countries also have their own currency. But the question is, what is currency? So the answer is, such a money-system, which is recognized by a country and used as a medium of money by the people there. Also, which has any value, it is called currency. That is, in exchange for which any item or service can be bought, it is currency.
For example, you can buy fruits with 50 rupees note. That’s why it is currency. But you cannot buy anything with the old Rs 500 note. Because neither it is recognized by the government nor does it have any value. That’s why it’s not a currency. Currency is usually printed on pieces of paper or metal (coins). That is why it is called Physical Currency . That is, it is possible to touch it and carry it around in the purse. But this is not the case with Cryptocurrency .
What is Cryptocurrency?
Cryptocurrency is a digital currency, which is managed by a decentralized system. In this, each transaction is verified by Digital Signature . And with the help of cryptography, its record is kept. In other words, cryptocurrency is a virtual currency based on Blockchain Technology , which is secured by Cryptography . It is almost impossible to copy.
In fact, cryptocurrency is a peer-to-peer cash system built on a computer algorithm . That is, it does not exist physically. It stays online only in the form of Digits. And its biggest feature is that it is completely Decentralized . That is, there is no control of any country or government on it. That is why it was initially termed as illegal. But later in view of the popularity of Bitcoin, many countries made it legal. But many countries are still against it.
However, cryptocurrency is not printed in the form of notes and coins. But still it has its own value. That is, you can buy goods with Cryptocurrency. can trade. And you can also invest. But you can’t keep it in your safe. Nor can it be kept in the bank’s locker. Because it stays online in the form of Digits. That is why it is also called Digital Money , Virtual Money and Electronic Money .
If we talk about Cryptocurrency Value , then its value is much more than Physical Currencies. And the value of some top cryptocurrencies is thousands of times more than the dollar. But there is also a truth that this value does not remain constant. That is , the cryptocurrency market fluctuates very fast. Due to which its prices change several times a day.
How does Cryptocurrency work?
Cryptocurrency actually works through Blockchain . That is, a record of the transaction is kept in it. Also it is monitored by Powerful Computers, which is called Cryptocurrency Mining . And by whom this mining is done, they are called miners .
When there is a transaction in Cryptocurrency . So his information is recorded in the Blockchain. That is, it is kept in a block. And the work of security and encryption of this block is done by the miners. For this they solve a cryptographic puzzle and find the proper hash (a code) for the block.
When a miner secures the block by finding the right hash. Then it is added to the Blockchain. And it is verified by other nodes (Computers) present in the network . This process is called Consensus .
Types of investment – Investment options
in investment options – types of investment ? And who benefits from investing? And in which investment there is work risk and in which one is more?
If you also have such questions related to investment in your mind, then keep watching this article completely,
because I am going to talk to you about this today,
First of all, let’s talk about what are the options available to us to invest,
if we talk about India, then some of the most popular investment options in India are as follows-
1) FIXED INCOME INSTRUMENTS
2) GOLD ( COMMODITIES)
3) REAL ESTATE
4) EQUITY (STOCK MARKET)
RISK AND REWARD OF INVESTMENT TYPES IN INDIA
Before knowing where to invest, let’s talk about these four options for these investments, which investment is beneficial? And also which investment has how much risk?
1) FIXED INCOME INSTRUMENTS
Fixed Income means this type of investment, from where the profit we get from the investment is absolutely fixed in advance,
some of the popular investment options under Fixed Income are as follows-
1) Given by the bank FIXED DEPOSIT SCHEME
2) RECURRING DEPOSIT -RD SCHEME BY BANK
3) SCHEME OF INVESTMENT IN BOND BY THE GOVERNMENT OF INDIA
4) INVESTMENT IN BOND SCHEME OFFER BY HUGE CORPORATE COMPANY IF ABOUT
FIXED INCOME INSTRUMENT Profit and RISK have the least risk on this type of investment, and due to RISK work, the return on such investment is also less,
if we talk about 2017 then the annual profit on such investment is 7 % to 11%,
2) GOLD (COMMODITIES)
Investing in gold in India is very popular since ancient times, gold has been associated with prestige and pride in our civilization and culture,
if we talk about the benefits and risks of investment, then the risk of investing in gold is very low. This happens, because gold is a metal that is produced in a limited quantity, and its price increases over time,
and if we talk about the benefits of investing in gold, then you will get annual 8 to 9% CAGR (Compound annual). Growth Rate) profit is received,