Many queries about what is cryptocurrency basically and how to do the SIPs. Time for today's thread on this topic. Here we go
The monetary system we see today evolved like this.
Barter system -> precious stones -> gold coins -> metal coins -> paper money -> plastic money -> digital money -> next?

Answer : Crypto.

There are some inherent limitation of every system in this world hence the evolution
So the answer of "why crypto?" lies in the limitation of the current system we have in place i.e. fiat currency (INR, USD, EURO,GBP etc). Lets see what are those limitations :
(1) Centralized Control :Your money is not yours. Steps like demonetization can leave you pennyless
(2) Institutional Control : Your money is regulated by institutes which have sort of autonomy to print money according to policies which are not very transparent. Needless to say these institutes have corrupt handlers as well. Autonomy + Corruption + No transparency = Disasters
(3) Transparency : although institutes have everything on every transactions of yours but do you have the same sort of transparency on the transactions made by those institutes? Do you know how much cash actually went in RBI during DeMo??
(4) There is no global currency in place. Every nation have their own currency which need to be converted into other country's currency if you send it from one to another country. Conversion again enables mediators to make a business out of your hard earned money.
These are just few we see every day. There are many more. Now how does crypto comes in and provides an alternative, here is how.
(1) Crypto market works on demand and supply method in its purest form. Price is decided by market forces. Limited supply assures appreciation of value
(2) Since the adoption is not at very large scale, we need exchanges to buy them. But to transfer or receive crypto, you don't need any mediator. You dont need to wait for your turn in some line during office hours. It is not regulated by any institution so no bigg boss watching
(3) Similar Transaction fees for a transaction of $1 or $1B. Instant transfer of value with 100% transparency courtesy blockchain's public ledger system. No need of conversion.
(4) based on latest technology which is near about impossible to hack. Unlike your bank, a crypto wallet can be operated without any kyc. All you need is just internet. Private key encryption gives you all the power to have full control of your money
Let me explain all these points practically.
(1) What cryptocurrencies are there?
Ans : There are so many. It started with Bitcoin which still have biggest market share of any crypto. It was followed by Ethereum (Ethereum improved on bitcoin in technical terms and many more)
(2) How to trade?
Ans : Rightnow there are 2 methods. One is exchanges like zebpay, wazirx, bitbns etc in India. Second is P2P. You can find a person who want to sell his crypto and you can buy it directly from him
(3) Where is my crypto stored?
Ans : It is stored in a digital wallet on blockchain. The public key is also your wallet address (like your bank account number). To access the funds, you need a private key (like your netbanking password).
(4) How to get my private key and how to keep it safe?
Ans : In exchanges, your private key is held by exchange which means you literally dont have any control over your crypto. When you hear about a hack, its exchange computer where private keys are saved that gets hacked...
...not the blockchain where your crypto is stored. There are physical (eg Trezor) and offline wallets (Exodus) to store your crypto while having your private keys with yourself only. It is recommended to have your private keys under own control if your investment is big.
This is one bitcoin transaction on blockchain. Now you can see amount of fund transfered along with address (public keys) of sender and receiver. If you click on any of those address, you can see every transactions and balances of the address. Transparency
Blockchain is public ledger because public can see every transaction made here. Although you can now see entire money trail along with balances but you won't be getting any info on the owner of these accounts. Nobody does. Transparency with privacy.
2000 btc worth 161cr moved while paying a fees of merely 0.00037950btc (INR 300rs roughly) in public while also maintaining your privacy. If this doesn't blow your mind, nothing will
So if u feel a decentralized, transparent, public ledger enabled monetary system which works beyond geographical boundaries while having no institute regulating it, with limited supply, join the revolution by buying some of this piece of future for yourself and next generations
How to do the crypto SIP? Google bitdroplet. Create an account, do the kyc, load money in your wallet, set a goal and voila. You are done. Keep refilling the wallet and once amount is significant, move your crypto to offline wallet (my recommendation is exodus, a pc software)
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