How cryptocurrency work?

I hope all of you are well and good.Today i see the rate price of Bitcoin which is almost 42 lack andwhen i see previous rate of Bitcoin which is 80,000 then i surprise because in someone buy Bitcoin at 80,000 and if they sale now then they find profit in multiple of actual amount.Then i think that the investing in cryptocurrency is gambling or not? Then i study about this further more in which i study about basic fundamentals of investing in cryptocurrency.Now if i took example of Bitcoin.Some people said that cryptocurrency is a future and some people said that cryptocurrency is gambling now the big question is what is reality. But if we buy shares in share market then we see all details of honours and every detail are mention in market and we see every detail at any time.In stock market if company grow and sale their products continuesly for example nestle company are one of growing company that sale there products continuesly and if nestle company are public td and allowed to buy their company shares and you will buy their shares then definitely after sometime the rate of your shares also increase.This procedure are understood but behind of any cryptocurrency we don't know about who are founder of coin.If we talk about bitcoin then we don't know who are founder of Bitcoin.The graph of bitcoin same as it stocm market graph bit only base of concept not fact. -Bitcoin graph: ![]()

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How cryptocurrency work

Now big question is how cryptocurrency work if you don't know even its founder then we all have habit to see what is going if we see the rate of some coin increase continuesly then we invest the amount in this coin and as it others people also invest in it.For example if someone start coin and sale their one coin only 1 dollar and convince only five friends to buy this and they also said that the coin are limited and only 10 million and his friends buy this coin and sale this further 10 dollar of each coin and now people buy this coin at 10 dollar which himself buy only 1 dollar in this case the price of coin also increase and when others see that the price of coin increase then they start purchasing coin speedly and the graph of this coins increase and those who make the account they make money compound.

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Types of investers

Now when i study about cryptocurrency then i see only two types of investers in cryptocurrency.
-1:Institutional investors
-2: Retail Investors

Institutional Investors:

In institutional investors big companies invest in cryptocurrency for example Elon Musk make doge coin in which when he tweet then everyone scrolling about this and think that the buy of doge coin which is correct or not.But after that many people buy it and increase the price.Now in institutional investors some big companies make coins and people buy it soeedly then they gradually sale the coins in this case it is limited and orice of rate is increase but when they gradually sale the coin then they multiple their amount.

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Retail Investors

Retail investors are individually people invest in cryptocurrency in this case if they follow the graph of institutional investors then they have profit but if they are beginner and not know much about the sale and buy role then they face loss even lose their all actual amount.

Conclusion

In last i tell only if want to invest in cryptocurrency then you invest 10 percent of your amount and you invest in different markets in this case you find a lot of profit.