C RY P T O C U R R E N C Y

By Sumit Prajapati
From SY B.M.S
 • A cryptocurrency is a digital or virtual
currency that is secured by cryptography,
which makes it nearly impossible to
counterfeit or double-spend
• Many cryptocurrencies are decentralized
networks based on
 blockchain technology—a distributed
ledger enforced by a disparate network
W H AT I S of computers
C RY P TO C U R R E NC Y • A defining feature of cryptocurrencies is
that they are generally not issued by any
central authority, rendering them
theoretically immune to government
interference  or manipulation
U N D E R S TA N D I N G C RY P T O C U R R E N C I E S

Cryptocurrencies are digital or virtual currencies underpinned by

cryptographic systems

They enable secure online payments without the use of third-party

intermediaries

"Crypto" refers to the various encryption algorithms and cryptographic

techniques that safeguard these entries, such as elliptical curve
encryption, public-private key pairs, and hashing functions
 BLOCKCHAIN

• Experts say that blockchain

technology can serve multiple
industries, such as supply chain, and
processes such as online voting and
crowdfunding
• Financial institutions such as
JPMorgan Chase & Co. are testing
the use of blockchain technology to
lower transaction costs by
streamlining payment processing.2
 NODES

In the world of cryptocurrency, a node is a computer that connects to a cryptocurrency

network. The node supports the cryptocurrency's network through either; relaying
transactions, validation or hosting a copy of the blockchain. In terms of relaying
transactions each network computer (node) has a copy of the blockchain of the
cryptocurrency it supports. When a transaction is made the node creating the transaction
broadcasts details of the transaction using encryption to other nodes throughout the node
network so that the transaction (and every other transaction) is known.

Node owners are either volunteers, those hosted by the organization or body responsible
for developing the cryptocurrency blockchain network technology, or those who are
enticed to host a node to receive rewards from hosting the node .
 • Cryptocurrencies represent a new,
decentralized paradigm for money
• Cryptocurrencies promise to make it
easier to transfer funds directly between
two parties, without the need for a
trusted third party like a bank or a credit
card company
• Because they do not use third-party
A D VA N T A G E S intermediaries, cryptocurrency transfers
between two transacting parties are
faster as compared to standard money
transfers
• Cryptocurrency investments can
generate profits
• The remittance economy is testing one of
cryptocurrency's most prominent use
cases
D I S A D VA N T A G E S

Cryptocurrencies have
Though they claim to be In theory, cryptocurrencies
become a popular tool
an anonymous form of are meant to be
with criminals for
transaction, decentralized, their wealth
nefarious activities such as
cryptocurrencies are distributed between many
money laundering and
actually pseudonymous parties on a blockchain
illicit purchases

Though cryptocurrency
One of the conceits of
blockchains are highly
cryptocurrencies is that Cryptocurrencies traded in
secure, other crypto
anyone can mine them public markets suffer from
repositories, such as
using a computer with an price volatility
exchanges and wallets, can
Internet connection
be hacked
HOW DO YOU GET
C RY P TO C U R R E N C Y ?

• • Any investor can purchase

cryptocurrency from popular crypto
exchanges such as Coinbase, apps such as
Cash App, or through brokers. Another
popular way to invest in cryptocurrencies is
through financial derivatives, such as
CME's Bitcoin futures, or through other
instruments, such as Bitcoin trusts and
Bitcoin ETFs
 CONCLUSION

• As crypto matures, we will achieve a lot of

stability which will make it easily
transferable, and a store of value that will
make it more used by businesses, the
government, and everyone as a part of
everyday life.
• Cryptocurrency is still a lot in its early stages
and some people are still sceptical about it
but it is here to stay and has been adapted
into our lives and will be a currency used by
everyone which is only a matter of time. With
the acceptance and how widely talked about
it is, the future of crypto is sure to be bright.
T H A NK
YO U