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Cryptocurrency – meaning and definition
What is cryptocurrency?
A digital payment system known as cryptocurrency doesn't rely on banks to validate transactions. Peer-to-peer technology makes it possible for anybody, anywhere, to send and receive payments. Payments made using cryptocurrencies do not exist as actual physical coins that can be transported and exchanged; rather, they only exist as digital entries to an online database that detail individual transactions. A public ledger keeps track of all bitcoin transactions that involve money transfers. Digital wallets are where cryptocurrency is kept.
Due to the fact that transactions are verified using encryption, cryptocurrency has earned its moniker. This means that the storage, transmission, and recording of bitcoin data to public ledgers all entail sophisticated code. The purpose of encryption is to offer safety and security.
The first cryptocurrency was created in 2009 and is still the most well-known today: Bitcoin. A large portion of cryptocurrency interest is in trading for financial gain, with speculators occasionally sending prices stratospheric.
How does cryptocurrency work?
A distributed public ledger known as blockchain, which is updated and maintained by currency holders, is the foundation of cryptocurrencies.
Through a process known as mining, which employs computer power to solve challenging mathematical problems, units of Bitcoin are created. Additionally, users have the option of purchasing the currencies from brokers, then storing and spending them in digital wallets.
Cryptocurrency examples
Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.
Litecoin
Ripple:
Is cryptocurrency safe?
How to Invest in Cryptocurrency Safely
Research exchanges:
Diversify your investments:
One of the most important aspects of any successful investment strategy is diversification. This is especially true when it comes to investing in cryptocurrencies. For instance, don’t invest all your money in one cryptocurrency just because it’s a well-known name. There are literally thousands of cryptocurrencies to choose from, so it’s better to diversify across different currencies.
What is insurance ?
Insurance is a contract, defined by a policy, in which an individual or entity receives financial protection or reimbursement against losses incurred by the insurance company.The company collects customer risk to make payments more affordable for the insured.
The need for insurance -
- The insurance plan is beneficial for anyone looking to protect their family, property / assets and their own financial risk / loss: Insurance plans will help you pay for medical emergencies, hospitalization.
- contraction and treatment of any illness, and future medical care.
- The financial loss of the family due to the unfortunate death of the sole breadwinner can be covered by the insurance plan. The family can also repay the home loan or any other loan taken by the insured person in his / her lifetime.
- If you are not around in the future, an insurance plan will help your family maintain their standard of living. This will help them cover the cost of running the home through a lump sum insurance payout.
- In case of death / accident / medical emergency of the policyholder the insurance money will cover your family space required for breathing and all expenses.
- Insurance plans will help protect your child’s future in terms of education. Let your children pursue their dreams and ambitions without compromising, even when you are not around.
- Many insurance plans come with savings and investment plans with regular coverage. These help to create wealth / savings for the future through regular investments.
- You pay a regular premium and one part of it goes for life coverage while the other part goes to a savings plan or investment plan, which you choose based on your future goals and needs.