Crypto Currencies

& Blockchain

The inevitable Future.

What is a Crypto Currency ?

A Cryptocurrency is a digital asset designed to

work as a medium of exchange where individual
coin ownership records are stored in a ledger
existing in a form of computerized database
using strong cryptography
Characteristics of Cryptocurrency

❖ Decentralized
❖ Irreversible
❖ Highly volatile
❖ Anonymous
Blockchain Technology
 5 MOST POPULAR CRYPTOCURRENCIES
1. BITCOIN
Bitcoin is the world’s first decentralized cryptocurrency – a type of digital asset that uses public-key
cryptography to record, sign and send transactions over the Bitcoin blockchain. Launched on Jan. 3, 2009,
by an anonymous computer programmer (or group of programmers) under the name “Satoshi Nakamoto”,
Bitcoin and other cryptocurrencies are like the email of the financial world. The currency does not exist in
physical form, value is transacted directly between the sender and the receiver, and there is no need for
banking intermediaries to facilitate the transaction. Everything is done publicly through a transparent,
immutable, distributed ledger technology called blockchain.

2. ETHEREUM
Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum, and its
own programming language, called Solidity. As a blockchain network, Ethereum is a decentralized public
ledger for verifying and recording transactions. The network's users can create, publish, monetize, and use
applications on the platform, and use its Ether cryptocurrency as payment. As a cryptocurrency, Ethereum is
second in market value only to Bitcoin, as of May 2021.
3. DOGECOIN
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who
decided to create a payment system as a joke, making fun of the wild speculation in cryptocurrencies at the
time. Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the
face of the Shiba Inu dog from the "Doge" meme as its logo and namesake. It was introduced on December
6, 2013, and quickly developed its own online community. Recently, the meme-inspired crypt coin made it
into the top five most traded cryptocurrency list, with over US$253 billion in monthly trading
volume.Dogecoin.com promotes the currency as the "fun and friendly internet currency", referencing its
origins as a joke.
4. CARDANO
Launched in 2017, Cardano is billed as a third-generation blockchain (following Bitcoin and Ethereum as
the first and second generations, respectively) that aims to directly compete with Ethereum and other
decentralized application platforms as a more scalable, secure and efficient alternative. The platform began
development in 2015 and was launched in 2017 by Charles Hoskinson, co-founder of Ethereum. Since last
October, Cardano has experienced a whopping 227% rise in adoption. However, similar to their price
swing in 2018, the current year is also imposing a similar trend for digital currency.
5.XRP(RIPPLE)
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple
Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open
source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units
of value. It is the native digital asset on the XRP Ledger—an open-source, permission less and decentralized
blockchain technology that can settle transactions in 3-5 seconds.
XRP can be sent directly without needing a central intermediary, making it a convenient instrument in
bridging two different currencies quickly and efficiently.
 HOW TO TRADE IN CRYPTO?
There are two routes to trading cryptocurrencies: speculating on their prices using CFDs(Contract for Difference) or buying
the digital currencies in the hope they increase in value.

● Trading cryptocurrencies using CFDs

A CFD is a contract in which you agree to exchange the difference in the price of a cryptocurrency from when you first
open your position to when you close it. You are speculating on the price of the market, rather than taking ownership of the
cryptocurrency. If you open a long position and the cryptocurrency does increase in value, you’ll make a profit, but if it falls in
price, you’ll make a loss – the opposite is true for a short position.
● Buying cryptocurrencies via an exchange

Alternatively, you might decide to buy a cryptocurrency, which means that you take ownership of a portion of the digital
currency outright, with the intention of holding it in a digital wallet and profiting if it increases in value.
Before you can start, you would need to open a cryptocurrency wallet, and an account with a cryptocurrency exchange. Some
of the popular exchanges are Binance, CoinBase, Wazirx etc.
 What is a Cryptocurrency Exchange?
● A cryptocurrency exchange or DCE (short for digital currency exchange) is a service/platform that enables clients to trade
cryptocurrencies for other resources, such as other cryptocurrencies, standard FIAT cash or other digital currencies. They
allow trading one cryptocurrency for another, the buying and selling of coins, and exchanging FIAT into crypto. Different
crypto exchanges may have different options and features. Some are made for traders and others for fast cryptocurrency
exchanges.

● Cryptocurrency exchanges are in some ways similar to regular stock exchanges, the difference being the way traders make
profit. On a stock exchange, traders buy and sell assets to profit from their changing rates, while on crypto exchanges,
traders use cryptocurrency pairs to profit from the highly volatile currency rates. While stock exchanges have set working
hours, crypto exchanges are also open 24 hours a day, seven days a week, 365 days a year.

● Cryptocurrency exchanges (especially centralized exchanges) require new users to complete a registration process before
they can begin trading. The levels of verification may vary – in some cases, confirming an email address will be enough,
while others require applicants to upload a photo of their passport. These KYC (“know your customer”) checks are in order
to ensure that crypto businesses comply with anti-money laundering measures.
 Centralized vs. Decentralized Cryptocurrency Exchanges

● Centralized cryptocurrency exchanges act as a third-party between a buyer and a seller. Since they are operated and controlled by a company,
centralized exchanges offer more reliability. Approximately 99% of all crypto transactions go through centralized exchanges. Examples of
centralized cryptocurrency exchanges include: Binance, Coinbase, CoinDCX etc.
● ADVANTAGES ARE –
1. User-friendly - Centralized exchanges offer beginner investors a familiar, friendly way of trading and investing in cryptocurrencies.
2. Reliable - Centralized exchanges offer an extra layer of security and reliability when it comes to transactions and trading. By facilitating the
transaction through a developed, centralized platform, centralized exchanges offer higher levels of comfort.

● DISADVANTAGES ARE –
1.Transaction fees
Unlike peer-to-peer transactions, centralized exchanges often charge high transaction fees for their services and convenience,
which can be especially high when trading in large amounts.
● Decentralized cryptocurrency exchanges (DEX) allow users to execute peer-to-peer transactions without the need for a third party
or an intermediary. Due to some of the issues associated with centralized exchanges, decentralized exchanges are preferred by
some users. However, decentralized exchanges do not facilitate the trading of fiat currencies for cryptocurrencies. Examples of
decentralized cryptocurrency exchanges include: AirSwap ,io.

● Advantages of Decentralized Cryptocurrency Exchanges –

1. Mitigating hacking risk
Users of decentralized exchanges do not need to transfer their assets to a third party. Therefore, there is no risk of a company or
organization being hacked, and users are assured of greater safety from hacking and theft.
2. Anonymity
Decentralized exchanges do not require customers to fill out know-your-customer (KYC) forms, offering privacy and anonymity to
users.

● Disadvantages are –
1. Complexity
● Users of decentralized exchanges must remember the keys and passwords to their crypto wallets, or their assets are lost forever
and cannot be recovered. 
 CONCLUSION

Finally, We would like to conclude by saying that Crypto Currencies have

a huge potential and a very promising future but just like everything it
comes with its share of risks and disadvantages although it has proved a
lot of successful entrepreneurs and business experts wrong many
respected personalities in the finance world have criticized Crypto but
despite that, it continued to grow