The back and forth of Digital currency

 Suppose you have money, but not in your pocket. The money was not kept in the bank or in the chest. Placed on the Internet. You will not be able to see the money kept online even if you touch it one day. Only this currency of the virtual world is called digital currency or virtual currency.

 Digital currencies are exchanged online. All information in the exchange is confidential, most of the time unknown. This type of digital currency is called cryptocurrency. A method called cryptography is used in exchange for such currencies. In this method, the information written in the conventional language or code is written in a code, which is almost impossible to access by breaking the information. This means that in a cryptography system, it is very difficult to get information about any purchase or transfer of funds from anyone other than the user.

 Even then, the biggest theft in the history of digital currency took place last Friday. A total of কোটি 534 million worth of digital currency has been lost by hacking into the computer and internet network of Tokyo-based digital currency exchange company Koenchek. 2 lakh 80 thousand customers have been affected. However, Koenchek has promised to return up to 90 percent of the lost money to the affected customers. The company has come under fire for the security of the network in the case of hacking and stealing money.

 Cryptography was invented during World War II to communicate secretly and securely. With the development of mathematical theory and computer science, cryptography has also improved. This was supposed to make the storage and exchange of digital currency online more secure.

 However, in spite of so much security, there have been several thefts in the last few years at various digital currency exchange institutions. In January 2009, Bitcoin became the world's first digital currency. There are currently more than a thousand cryptocurrencies on the Internet. The little-known currency NEM was stolen from Coincheck. In December last year, a Slovenian company called Nicehasch stole millions of dollars worth of bitcoin. Bitcoin theft also happened in 2016. Earlier in 2014, another exchange company Mtigox was the victim of currency theft. কোটি 400 million was stolen from their network. After admitting the theft, the institution was closed down.

 There are now thousands of cryptocurrencies in the world. However, the following digital currencies are at the forefront of exchange rates:

 Bitcoin: Bitcoin is one of the most popular cryptocurrencies ever. Its exchange value is also the highest. Satoshi Nakamoto created Bitcoin in 2009. As of December 2016, the market capitalization of Bitcoin was about ০ 230 billion. A few days ago, the exchange rate of a bitcoin stood at about 20,000 dollars. However, this year the exchange rate has dropped by about 30 percent.

 Ethereum: Ethereum was created in 2015. Like Bitcoin, this currency also has its own accounting system. It ranks second in terms of exchange value. Ethereum is second only to Bitcoin in terms of popularity. As of last December, the market capitalization of this virtual currency is about ৬৭ 6 billion. However, after being hacked in 2016, it was divided into two currencies. Its exchange rate recently reached ৮ 640. However, after the hacking, each Ethereum coin was sold for 10 cents.

 Ripple: Ripple was established in 2012. Not only cryptocurrency, but also other types of transactions can be done in this system. Various conventional banks are also using this digital currency. Ripple has a market capitalization of 10 billion.

 Lightcoin: Lightcoin has a lot in common with Bitcoin. However, Lightcoin can be traded faster than Bitcoin. Its market value is about 5 billion dollars

 How does digital currency work?

 Cryptocurrency uses a kind of decentralized technology, The Telegraph reports. This technology can be used to make secure online payments. The money can be deposited by keeping the name of the depositor secret and without going to the bank.

 The BBC reports that neither the government nor any institution prints digital currency like the conventional monetary system. Each digital coin is created in a complex calculation method called ‘mining’. Every transaction of all cryptocurrencies is monitored through an extensive network connected to numerous computers spread across the globe. This wide network system is called 'blockchain'. This blockchain technology can be used to purchase bonds, stocks and other financial assets, including general transactions.

 Users can also buy various digital currencies from online brokers. This coin can be kept in a safe place called ‘Cryptographic Wallet’ online.

 The more people buy a certain digital currency, the higher the market price of that currency. In this way, the exchange rate of different cryptocurrencies fluctuates regularly like the stock market. The BBC reports that the use of digital currency in criminal activities is more common as user identities are kept completely secret.

 The Telegraph reports that anonymity and strict security in the transaction system are the two main reasons why people are attracted to cryptocurrency or virtual currency. In this system, once a transaction is made, it is difficult to bring it back. At the same time it has gained more reliability to the customers as the transaction cost is less. Its decentralized technology means that everyone has a digital currency at their fingertips. Where in the conventional monetary system no customer gets service without opening an account in a bank or other financial institution.

 Another reason to be attracted to the cryptocurrency market is that it has the potential to make huge profits with less investment. This is because cryptocurrencies have higher exchange rates than conventional monetary systems. So there is a chance to get rich overnight. This is exactly why investments in Bitcoin or other top digital currencies have increased in recent years.

 But it also has the opposite side. In other words, just as there is a chance to get rich if the price goes up, you can also go down the street if the price goes down in a hurry. Again cryptocurrency is at the top of choice in illegal activity-related transactions due to strict confidentiality. So investors need to be careful about these things.