Cryptocurrency is a digital currency designed for exchange without reliance on central authorities. Various types exist, including utility tokens, transactional tokens, and security tokens, each with unique functions on their respective blockchains. The legal status of cryptocurrencies varies globally, with some nations accepting them as legal tender while others impose significant regulations or bans.

1. CRYPTO CURRENCY
NAYANA S

2. INTRODUCTION
A cryptocurrency, crypto-
currency, or crypto is a digital
currency designed to work as a
medium of exchange through a
computer network that is not
reliant on any central authority,
such as a government or bank,
to uphold or maintain it.

3. TYPES OF
CRYPTOCURRENCY
Utility: XRP and ETH are two examples of utility tokens. They serve specific functions on their respective blockchains.
Transactional: Tokens designed to be used as a payment method. Bitcoin is the most well-known of these.5
Governance: These tokens represent voting or other rights on a blockchain, such as Uniswap.6Uniswap Labs.
"Governance."
Platform: These tokens support applications built to use a blockchain, such as Solana.7
Security tokens: Tokens representing ownership of an asset, such as a stock that has been tokenized (value transferred
to the blockchain). MS Token is an example of a securitized token. If you can find one of these for sale, you can gain
partial ownership of the Millennium Sapphire.

4. ARE CRYPTOCURRENCIES LEGAL?
• Fiat currencies derive their authority from the government or
monetary authorities. For example, each dollar bill is
backstopped by the U. S. government.
• But cryptocurrencies are not backed by any public or private
entities. Therefore, it has been difficult to make a case for their
legal status in different financial jurisdictions throughout the
world. It doesn't help matters that cryptocurrencies have
primarily functioned outside most existing financial
infrastructure.

5. • In the US
• The legal status of cryptocurrencies creates implications for their use
in daily transactions and trading. In June 2019, the Financial Action
Task Force (FATF) recommended that wire transfers of
cryptocurrencies should be subject to the requirements of its Travel
Rule, which requires AML compliance.
• In the United States in July 2023, courts ruled that cryptocurrencies
are considered securities when purchased by institutional buyers but
not by retail investors purchased on exchanges.11
• Enthusiasts called it a victory for crypto; however, crypto exchanges
are regulated by the SEC, as are coin offerings or sales to institutional
investors. So, crypto is legal in the U.S., but regulatory agencies are
slowly gaining ground in the industry.
• As of January 2023, El Salvador and the Central African Republic were
the only countries to accept Bitcoin as legal tender for monetary
transactions.12 In the rest of the world, cryptocurrency regulation
varies by jurisdiction.

6. • In Japan
• Japan's Payment Services Act defines Bitcoin as legal
property.13 Cryptocurrency exchanges operating in the country are
subject to collect information about the customer and details relating
to the wire transfer. China has banned cryptocurrency exchanges and
mining within its borders. India was reported to be formulating a
framework for cryptocurrencies.14
• In Europe
• Cryptocurrencies are legal in the European Union. Derivatives and
other products that use cryptocurrencies must qualify as "financial
instruments." In June 2022, the European Commission released the
Markets in Crypto-Assets (MiCA) regulation that sets safeguards for
regulation and establishes rules for companies or vendors providing
financial services using cryptocurrencies.

7. ARE CRYPTOCURRENCIES SAFE INVESTMENTS?
• Cryptocurrencies have attracted a reputation as unstable
investments due to high investor losses due to scams, hacks,
bugs, and volatility. Although the underlying cryptography and
blockchain are generally secure, the technical complexity of
using and storing crypto assets can be a significant hazard to
new users.
• Despite the risks, cryptocurrencies have seen a significant price
leap, with the total market capitalization rising to about $1.2
trillion.17 Despite the asset's speculative nature, some have
created substantial fortunes by taking on the risk of investing
in early-stage cryptocurrencies.

8. ADVANTAGES AND DISADVANTAGES OF CRYPTOCURRENCY
Advantages Disadvantages
Removes single points of failure Transactions are pseudonymous
Easier to transfer funds between parties Pseudosymmetry allows for criminal uses
Removes third parties Have become highly centralized
Can be used to generate returns Expensive to participate in a network and
earn
Remittances are streamlined Off-chain security issues
Prices are very volatile

9. • How Do You Buy Cryptocurrencies?
• You can purchase cryptocurrency from popular crypto
exchanges such as Coinbase, apps such as Cash App, or
through brokers. Another popular way to invest in
cryptocurrencies is through financial derivatives, such as CME’s
Bitcoin futures, or other instruments, such as Bitcoin trusts and
ETFs.
• What Is the Point of Cryptocurrency?
• Cryptocurrencies are a new paradigm for money. They promise
to streamline existing financial architecture to make it faster
and cheaper. In addition, their technology and architecture
decentralize existing monetary systems and make it possible
for transacting parties to exchange value and money
independently of intermediary institutions such as banks.

10. WHAT ARE THE MOST POPULAR
CRYPTOCURRENCIES?
Bitcoin is the most
popular cryptocurrency,
followed by other
cryptocurrencies such as
Ethereum, Binance Coin,
Solana, and Cardano
Cryptocurrency Price In India Today
1Bitcoin BTC ₹ 2,410,182.27 0 %