WHAT IS CRYPTOCURRENCY

INTRODUCTION
 We are living in a digital world where everything
is heading towards pure digitalization. i.e.
 Most of our works are becoming  paperless. Even
money transfer and investments are paperless.
 One of such digital payment sector is
cryptocurrency.
WHAT IS CRYPTOCURRENCY ?
 Crypto currency is a digital money or virtual money. That is money is
not available physically and it is very secure.
 In simple words we can say cryptocurrency is a money exchange
process.
 Most popular example for cryptocurrency is Bitcoin. It is the first ever
introduced cryptocurrency.
 Some other examples for cryptocurrencies are Ethereum, XRP
 It is not possible to counterfeit or double spend because it is secured
by cryptography.
 It is an decentralised process hence they are not controlled by anyone
 Cryptocurrencies are tax free and they are not insured too.
 Government or banks are not responsible for cryptocurrency.
 Even many countries have banned cryptocurrency.
PURPOSE OF CRYPTOCURRENCY?
 The main purpose of cryptocurrency is to reduce
the risk involved in traditional currency.
 It is very easy to use. We can access it anywhere
and anytime. All we need is a smart phone and a
good net connection
 In cryptocurrency the power and the
responsibilities are in hands of the currency holder.
 They help in solving real world problems.
HOW DOES A CRYPTOCURRENCY WORK?
 It uses block chain technology. It is a very brilliant technology
because both the buyer and seller details are viewable to each other
and so no broker is needed.
 For example if we need to buy a share from a stock market we can do
it easily with the help of a broker. We will confirm the exchange order
and then we will receive the shares.  We don’t need to contact the
seller in person.
 The reason for choosing a broker is we don’t know if the seller has the
stock or not. This is known as principle of novation.
 In cryptocurrency involvement of third person is not needed because
all the transactions are stored in a common location and it is viewable.
The identity of the person who made the transaction is encrypted.
HOW CRYPTOCURRENCY IS MADE ?
 Most of the cryptocurrencies are made using a
process called mining.
 Mining is nothing but an algorithm. It is the process
of adding transaction to the blockchain ledger.
 Via nodes on the network with the consensus
achieved through a proof of system.
 But not all cryptocurrencies are made by mining.
Some currencies are created using various other
techniques such as tokens.
CAN CRYPTOCURRENCY BE CONVERTED TO CASH?

 The answer for the above question is yes. For

example one of the cryptocurrency Bitcoin can be
exchange into cash on a crypto exchange.
 There are platforms such as coinbase and kraken
that helps the users to convert digital money to
physical cash.
HOW SAFE IS CRYPTOCURRENCY?
 Transactions done using cryptocurrencies are
highly secure .
 There is a chance of earning huge amount when
compared to mutual funds or share market but it
comes with a high risk.
 Because the volatility of cryptocurrency is very
high. Either we earn high return or lose what we
have.
IS CRYPTOCURRENCY GOOD OR BAD?
 Every coin has two faces, similarly there are both good
and bad about investing in cryptocurrency. One should
know both the faces before investing. Let us consider
only the good side about investing
 Returns may be massive and everything is instant. So
you can buy or sell when there is a fluctuation in the
market very easily.
 There is a cold wallet storage option where we can
control our own private key. This key helps us to access
our coin in the block chain.
WHAT ARE THE PROBLEMS WITH CRYPTOCURRENCY?

 Major problem is cryptocurrency is the lack of

regulation.
 Next problem is volatility. For example in 2017
cryptocurrency like Bitcoin increased suddenly
upto 1000 percentage and then came down.
 Another problem is fear about hacking and scams
due to the reason of digitalisation.
IS CRYPTO ILLEGAL?
 It varies from one country to another. In some countries
it is legal and some countries have banned it.
 Crypto is legal in some of the most developed countries
like U.S Japan and U.k
 It is also legal in developing country like India but it
does not have any regulatory framework . Countries
like Algeria, morocco, Nepal, Pakistan and Vietnam
have banned it. (Verify crypto news for updated
information's)
WILL BANKS USE CRYPTOCURRENCY?
 Most are the banks are against the idea of
cryptocurrencies because it is a treat to most of
the traditional banks.
 There are also certain types of banks supporting
cryptocurrencies and investing in it.
WHAT IS THE DISADVANTAGE OF CRYPTOCURRENCY?

 One of the biggest drawback of cryptocurrency is

the security. There are stories where exchanges
are hacked and peoples who held coins in those
exchanges lost everything.
 There are lot of peoples with less experience and
knowledge which leads to huge loss.
 Since it is fully digitalized there is a technical
difficulty such as network issues and so on.
CAN YOU TRUST BITCOIN?
 Yes Bitcoin’s are really safe. If you are ready to
take risk and if you are ready for investing then
be ready for all kind of high and low.
 If no of Bitcoin’s available Is less and no of
bidders are very large in number the value
automatically increases.
CAN YOU GET SCAMMED ON BITCOIN?

Yes there is a chance of getting scammed on

Bitcoin’s some such scams are
 Fake ICO’S
 Social media scams

 Fraudulent exchanges

 Imposter websites

 Scamming emails
CAN A BITCOIN CRASH?
 Yes Bitcoin may crash. But the gains achieved
using Bitcoin are higher when compared to the
losses.
 But a Bitcoin reducing to zero is nearly
impossible.
WHY WE SHOULD NOT USE BITCOIN?
 Highly volatile
 Lack of knowledge and experience
 Unregulated space

Conclusion: Know all the ups and downs, before investing into crypto.
THANK YOU