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Cryptocurrencies are not controlled by the government or central regulatory authorities. As a concept, crypto currency works outside of the banking system using different brands or types of coins – Bitcoin being the major player

MINING

Crypto currencies (which are completely digital) are generated through a process called “mining”. This is a complex process. Basically, miners are required to solve certain mathematical puzzles over specially equipped computer systems to be rewarded with bitcoins in exchange. In an ideal world, it would take a person just 10 minutes to mine one bitcoin, but in reality, the process takes an estimated 30 days.

BUYING, SELLING, AND STORING

Users today can buy crypto currencies from central exchanges, brokers, and individual currency owners or sell it to them. Exchanges or platforms like Coinbase are the easiest ways to buy or sell crypto currencies. Once bought, crypto currencies can be stored in digital wallets. Digital wallets can be“hot” or “cold”. Hot means the wallet is connected to the internet, which makes it easy to transact, but vulnerable to thefts and frauds. Cold storage, on the other hand, is safer but makes it harder to transact.

TRANSACTING OR INVESTING

Once bought, crypto currencies can be stored in digital wallets. Digital wallets can be “hot” or “cold”. Hot means the wallet is connected to the internet, which makes it easy to transact, but vulnerable to thefts and frauds. Cold storage, on the other hand, is safer but makes it harder to transact.

Cryptocurrencies like Bitcoins can be easily transferred from one digital wallet to another, using only a smartphone. Once you own them, your choices are to:

A. Use them to buy goods or services.

B. Trade in them

C. exchange them for cash

If you are using Bitcoin for purchases, the easiest way to do that is through debit-card-type transactions. You can also use these debit cards to withdraw cash, just like at an ATM. Converting crypto currency to cash is also possible using banking ac-counts or peer-to-peer transactions.