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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.
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.
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.
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.
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?
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.
WazirX is India’s most secure exchange. We’re investing in regular security audits to ensure a highly secured trading platform for India.
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
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 trade commission program, you can earn as much as you want. You can refer your friends and earn a 50% commission on every trade they make. All commissions 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.
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.
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.
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
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.
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.
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.
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.