What is Cryptocurrency

What is a 'Cryptocurrency'
According to Wikipedia;  Cryptocurrency (or crypto currency) is a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency
Generally Cryptocurrency is a digital or virtual currency that uses cryptography for security.
A cryptocurrency is a medium of exchange just like normal currencies such as $,£,¥, but designed for the purpose of exchanging digital information through a secured process made possible by certain principles of cryptography.

In different way, cryptocurrency is electricity converted into traces of code with monetary value . To it short, cryptocurrency is virtual foreign money.

Cryptography is used to secure the transactions and to control the introduction of new coins. The first cryptocurrency to be created turned into bitcoin in 2009. Today there are hundreds of different cryptocurrencies, regularly known as altcoins.

A cryptocurrency is difficult to counterfeit due to this protection characteristic. A defining function of a cryptocurrency, and arguably its maximum endearing charm, is its organic nature; it isn't always issued with the aid of any principal authority, rendering it theoretically proof against government interference or manipulation.

Cripto-Currencies

BITCOIN

Bitcoin is a digital foreign money created in 2009. It follows the ideas set out in a white paper by the mysterious satoshi nakamoto, whose authentic identity has yet to be verified. Bitcoin offers the promise of lower transaction prices than conventional online price mechanisms and is operated via a decentralized authority, not like authorities issued currencies.
There aren't any physical bitcoins, only balances related to public and private keys. Those balances are saved on a public ledger, in conjunction with all bitcoin transactions, that is proven with the aid of a big quantity of computing power.
LITECOIN

Launched within the year 2011, litecoin is an opportunity cryptocurrency based at the model of bitcoin. Charlie lee, a MIT graduate and former google engineer, is litecoin's creator. Litecoin is primarily based on an open source global payment network that isn't always managed with the aid of any central authority. Litecoin differs from bitcoins in components like faster block technology price and use of scrypt as a proof of labor scheme.
Litecoins were released with the intention of being the "silver" to bitcoin's "gold," and feature gained a lot recognition for the reason that time of inception. Litecoin is a peer-to-peer internet currency. It's far a totally decentralized open supply, global charge community. Litecoin became evolved with the intention to improve on bitcoin's shortcomings, and has earned industry aid in conjunction with high alternate quantity and liquidity through the years.

Bitcoin Wallet

Bitcoin wallet is a software program where Bitcoins are stored. To be technically accurate, Bitcoins are not saved anywhere; there's a non-public key (secret range) for each bitcoin address that is saved inside the bitcoin wallet of the person that owns the balance. Bitcoin wallets facilitate sending and receiving bitcoins and offers possession of the bitcoin stability to the person.  The bitcoin wallet comes in many bureaucracy;  desktop, mobile , web and hardware are the four main styles of wallets.

A bitcoin pockets is also known as a digital Wallet. Establishing this sort of wallet is an critical step inside the technique of obtaining Bitcoin. Just as bitcoins are the digital equivalent of cash, a bitcoin pockets is analogous to a physical wallet . However in place of storing bitcoins actually, what's saved is lots of applicable statistics like the secure non-public key used to access bitcoin addresses and carry out transactions. The four major styles of pockets are laptop, cell, net and hardware.

Cryptocurrency Legality
China has banned financial institutions from handling bitcoins and Russia, while saying cryptocurrency is legal, has made it illegal to purchase goods with any currency other than Russian rubles.

In the U.S., the IRS has ruled that Bitcoin is to be treated as property for tax purposes, making Bitcoin subject to capital gains tax. The Financial Crimes Enforcement Network (FinCEN) has issued guidelines for cryptocurrencies. The issued guidelines contain an important caveat for Bitcoin miners: it warns that anyone creating bitcoins and exchanging them for fiat currency are not necessarily beyond the reach of the law. It states:

“A person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter.”

Miners seem to fall into this category, which could theoretically make them liable for MTB classification. This is a bone of contention for bitcoin miners, who have asked for clarification. This issue has not been publicly addressed in a court of law to date.