Recently, we have been listening to these words a lot of time in news, TV, social media, memes, etc. Those are - cryptocurrency and Bitcoin.

 

Many of us have come across these words but still have no clue about what it is and how to invest in them. So, to sort this out, here's a beginner's guide on digital currency for all:

 

What is Cryptocurrency?

 

As earlier mentioned, it is a type of digital asset just like the money we have in our wallet. They are supposed to be functional as a means of exchange.

 

They work based on blockchain technology, which keeps the economic records like transactions, balances and account numbers.

 

 

What determines the value of Cryptocurrency?

 

In simple terms, cryptocurrency’s value depends on three factors – supply(scarcity), demand and usage(utility). Just like other things, its price is determined based on the market’s supply and demand.

 

There are various Cryptocurrencies available in the market, but the popular one is Bitcoin. The value of Bitcoin is very volatile as it is a nascent market.

 

 

How do I buy cryptocurrencies?

 

It's not as tough as it seems to be. If you want to purchase cryptocurrencies, you can either buy coins from an exchange, or you can get them from a cryptocurrency ATM. It's a quick and easy process.

 

The most popular way to make a purchase is via the use of an exchange. You can treat Cryptocurrencies much like stock exchanges, they are a place where you can buy or sell crypto funds.

 

What else?

 

Apart from online gambling, you can also purchase cars, homes, do shopping, eat out and many more things. For cars and homes, you’ll need a pretty hefty crypto portfolio.

 

There are various web retailers who have started accepting Cryptocurrencies and hence you can go shopping with them. For this, you are not required to have a hefty portfolio.