The World has evolved over the years and money(payment ways) has evolved over the years too. Crypto money, that is considered as no one's currency is one of the latest ones that we know.
With the evolution too of many different crypto currencies beginning from Bitcoin, Ethereum, and many others, you can have a crypto currency at your disposal with no one telling you what to do with it.
The World has been in a continuous advanced state and many things are done online. And with the recent cryptocurrency, there is no need for displacement because everything is at your disposal and all what you will need is in your hands. As it is often said, the ball is in your colt when we talk about Cryptocurrencies.
Well, in this article we will be talking about some things to know about Crypto currencies, it's history, how it evolved, and how to use this special currency.
Table of Contents
What To Know About Cryptocurrencies
What is cryptocurrency?
A cryptocurrency, or crypto is a digital asset designed to work as a medium of exchange where individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
It typically does not exist in physical form like a paper money or physical cash and is typically not issued by a specified central authority. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems. When a cryptocurrency is created, it is generally considered centralized.
When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Cryptocurrency is a type of digital currency that generally only exists electronically. There is no physical coin or bill unless you use a service that allows you to cash in cryptocurrency for a physical token.
You usually exchange cryptocurrency with someone online, with your phone or computer, without using an intermediary like a bank. Bitcoin and Ether are well-known cryptocurrencies, but there are many different cryptocurrency brands, and new ones are continuously being created.
Why do people use cryptocurrency?
There are many reasons why people decide to use cryptocurrencies and some of them are;
- People use cryptocurrency for quick payments
- To avoid transaction fees that regular banks charge
- Ease of use is the reason why cryptocurrency is in high demand
- In Cryptocurrency, there is an ease of access because everyone is able to contact the internet and so easily contact your cryptocurrency accounts.
- There is no other electronic cash system in which your account is owned by you but thats what cryptocurrencies give you. A self ownership.
- Others hold cryptocurrency as an investment, hoping the value goes up.
How is cryptocurrency different from U.S. Dollars?
There are important differences between cryptocurrency and the ordinary cash we know traditionally in each country.
Cryptocurrency accounts are not backed by a government.
Cryptocurrency accounts are not insured by a government like U.S. dollars deposited into a bank account. If you store cryptocurrency with a third-party company, and the company goes out of business or is hacked, the government has no obligation to step in and help get your money back.
Cryptocurrency values change constantly.
The value of a cryptocurrency can vary rapidly, even changing in an hour or so. It depends on many factors, including supply and demand.
An investment that’s worth thousands of dollars today might be worth only hundreds tomorrow same as an investment of hundreds can be worth thousands tomorrow. And, if the value goes down, there’s no guarantee it will go up again.
Paying With Cryptocurrency
If you’re thinking about paying with cryptocurrency, know that it’s different from paying with a credit card or other traditional payment methods.
Cryptocurrency payments do not come with legal protections. Credit cards and debit cards have legal protections if something goes wrong. For example, if you need to dispute a purchase, your credit card company has a process to help you get your money back. Cryptocurrencies typically do not.
Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you can usually only get your money back if the person you paid sends it back. Before you buy something with cryptocurrency, know the seller’s reputation, where the seller is located, and how to contact someone if there is a problem. Confirm these details by doing some research before you pay.
Some information about your transactions will likely be public. People talk about cryptocurrency transactions as anonymous. But the truth is not that simple. Some cryptocurrencies record some transaction details on a public ledger, called a “blockchain.” That’s a public list of every cryptocurrency transaction both the payment and receipt sides. Depending on the cryptocurrency, the information added to the blockchain can include details like the transaction amount and the sender’s and recipient’s wallet addresses.
A wallet address is a long string of numbers and letters linked to your digital wallet. Even though you can use a fake name to register your digital wallet, it’s possible to use transaction and wallet information to identify the people involved in a specific transaction.
And when you buy something from a seller who collects other information about you, like a shipping address, that information can be used to identify you later on.
How do you get cryptocurrency?
Each person has his or her way to get cryptocurrencies but the main three ways in which one gets cryptocurrencies are;
- You can buy cryptocurrency through an online exchange platform.
- One can also get cryptocurrencies from someone who sends the crypto to your wallet.
- Some people earn cryptocurrency through a complex process called “mining,” which requires advanced computer equipment to solve highly complicated math puzzles.
Where and how do you store cryptocurrency?
Cryptocurrency is stored in a digital wallet, which can be online, on your computer, or on an external hard drive. Three most used digital wallets are; Coinbase, Binance and Blockchain wallets.
1. Binance
A leading cryptocurrency exchange, Binance provides an affordable way to buy and sell many diverse coins, including some very rare ones. Binance places great focus on offering traded currencies. Since it's launch, Binance has emerged as the largest exchange based on global trading. Shockingly, the platform achieved this status in little more than six months' time.
Today, it remains near the top. Why? Because of its overall ease-of-use, global approach to business, and multi-lingual platform accessibility. Binance has about 17 languages to use in their platform with English, German, French, and Chinese include.
2. Coinbase
Coinbase, Iis an American company that operates a cryptocurrency exchange platform that operates remote-first without an official physical headquarters. The company was founded in 2012, and as of March 2021, was the largest cryptocurrency exchange in the United States by trading volume.
3. Blockchain
A blockchain is a distributed and shared database where the database storage devices are not all linked to a common processor. It is a list of growing records, called as blocks, which are connected and secured by cryptography. Every block is connected to the previous block and has a transaction data and timestamp.
But if something unexpected happens — your online exchange platform goes out of business, you send cryptocurrency to the wrong person, you lose the password to your digital wallet, or your digital wallet is stolen or compromised — you’re likely to find that no one can step in to help you recover your funds. And, because you typically transfer cryptocurrency directly without an intermediary like a bank, there is often no one to turn to if you encounter a problem.
In conclusion, Cryptocurrencies as the name says are encrypted virtual cash that are mostly used for online transactions and that are very different from physical cash or physical money.
- How to Buy Crypto currencies without ID pr Verification
- The Best Australian Crypto Exchange Platforms
- The Best Platforms To Exchange any Crypto Currency
- The Best Sites to Buy Crypto Currencies with Debit or Credit Card
- Blockchain and Cryptocurrency: Foreign Trade Applications
- What to Know about Binance; Pros and Cons
- How to Transfer Funds from Trust Wallet to Bank Account