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Blockchain in its entirety is a database. And the key word that defines this database is ‘decentralized’. Akin to a record of transactions maintained by a bank, blockchain also is a ledger but distributed. Like BitTorrent, the peer-to-peer internet-based file-sharing protocol.
This decentralization is blockchain’s greatest advantage and the very essence of the financial system spawned by the advent of cryptocurrencies.
Apart from the distributed nature of blockchain, there are a few more advantages. Advantages that make it an appropriate foundation for digital asset based economic and application models to thrive.
Security
Blockchain-based database systems or digital ledgers are a lot more secure than other record keeping systems. Why? Because each new transaction is encrypted via cryptographic hash functions and linked to the previous transaction.
Blockchain consists of ‘blocks’ of information/transaction data linked to each other in a ‘chain’. And hashes are a complex string of mathematical numbers, insanely difficult to alter after a hash function computation.
This imparts near full-proof security from network takeover attacks and double-spending.
As a matter of fact, cryptocurrency transactions in proof-work based blockchain systems happen successfully only upon successful calculation of these hash functions. That’s why it is quite difficult to break digital asset systems like Bitcoin.
Trustlessness
Conventional systems and protocols function on an intermediary/middleman based model. Financial transactions between two parties can happen only with the ‘permission’ of ‘trust-inducing’ institutions like banks, credit cards, and payment processing companies.
Blockchain technology negates the requirement for trust and permission and replaces them with verification. This is possible because of well-established mathematical and computation concepts that impress on the need to verify the authenticity of transactions.
This also makes blockchain technology fairly economic and sustainable by reducing the overall costs and expenditures of maintaining intermediaries and third parties.
Transparency
One of blockchain technology’s most crucial advantages (for cryptocurrencies) is that the ledger of transactions is public and open for the world to see.
Committing fraud on a blockchain-based cryptocurrency system is therefore a pretty difficult proposition. This transparency adds an unprecedented layer of accountability for transacting individuals and forces them to be the best possible version of their honest selves, at least while they are interacting on the blockchain.
Distributed
Usually, nodes/network participants store the entire copy of the blockchain ledger on their computers. This highly distributed nature of blockchains make them are highly resistant to malicious attacks
Technically speaking, each network node replicates and stores a copy of the public database and, because of this, thereby eliminating single/centralized points of failure.
This means that even if a single node goes offline, the network will not be affected. The ledger will reian operational and resilient to redundancies.
This is a huge leg up over many conventional databases that rely on a single set of data servers, which in turn attract vulnerability due to technical failures through aggressive cyber attacks.
Considering the fact that cryptocurrencies exist on these powerful blockchain technology-based systems, it makes sense to buy some of them.
How and Where to Buy the Cryptocurrency of your choice?
WazirX offers a smooth and seamless way to buy cryptocurrencies and plenty of cryptocurrency options to choose from.
First, you need to set up your account. For that, you will need to provide a valid ID proof for a mandatory KYC process and your bank account details.
It takes a few hours to verify the information shared from your end, after which you are all set.
You can go ahead and directly buy the cryptocurrency of your choice, using the funds from your bank account.
Why You Should Buy Cryptocurrencies from WazirX?
Acquired by Binance
In November 2019, Binance, the world’s largest cryptocurrency exchange acquired WazirX.
This has made WazirX an international cryptocurrency market player which means that Bitcoin and crypto traders and investors from across the world will be able to use WazirX’s digital asset platform.
Optimum Security
WazirX is India’s most secure exchange. We’re investing in regular security audits to ensure a highly secured trading platform for India.
Blazing Transactions
WazirX’s system can handle ‘millions’ of fiat-to-crypto, crypto-to-fiat and crypto-crypto transactions.
Our infrastructure is capable enough to scale up in a few seconds to match surging demand.
Functional and User-Friendly Design
Cryptocurrency trading on the WazirX platform is a super-fast experience. The creators have already built technologies that are used by millions globally.
That experience has helped made WazirX a feature-rich but efficient crypto exchange.
Built by Blockchain Believers
WazirX is powered by a team of hardcore traders & passionate blockchain believers.
We understand exactly what your crypto needs are. Powerful graphs, mobile apps, etc are integrated features of WazirX right from the start.
Now Available Across 5 Platforms
WazirX offers a seamless and powerful crypto trading experience across all platforms – Web, Android, iOS, Windows, and Mac apps.
Opportunity to Own WazirX Token (WRX)
WazirX token or WRX is WazirX’s native cryptocurrency token. By owning WRX you can earn rewards (in WRX) by executing crypto trades.
Also, in the future, WRX will prove useful in availing trading fee discounts, paying for margin fees, and more.
An Amazing Referral Program
With WazirX’s referral rewards program, you can earn as much as you want. You can refer your friends and earn a 50% rewards on every trade they make. All rewards are credited within 24 hours.
Now you how to buy crypto assets, but just buying them is not enough. You must also know what’s their future in India and across the world.
Frequently Asked Questions
Is Cryptocurrency Legal In India?
In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
What Is Crypto?
Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
What Is The Meaning Of Crypto?
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
