Cryptocurrency: Everything To Know About


Cryptocurrency, we all heard about cryptocurrency, bitcoin, the new way of trading, and so many other words that we find a little bit weird and difficult to understand. First, let’s talk about the terminology of cryptocurrency. It is a virtual system for fund transfers. It utilizes Blockchain technology to achieve decentralization, which means that cryptocurrency isn’t under the control of a single authority. The currency is named after the encryption processes used to secure that system.

How Do Cryptocurrencies Work?

The system of cryptocurrencies can be overwhelming at first, but in fact, it is simple to understand as we do similar processes almost every day. It executes safe online payments in the form of virtual currencies that are only verified by that system. The exchange virtual medium is based on Blockchain techniques to provide transparency and integrity.

Cryptocurrency- Everything To Know About
Cryptocurrency- Everything To Know About

Types Of Cryptocurrency

The first introduced type of cryptocurrencies was the Bitcoin. Today, there are so many different forms of cryptocurrencies with different purposes, but a lot of them copy the bitcoin. The types that we might say are competing with bitcoin are the altcoins. The cryptocurrency world is growing very fast that we can surely anticipate that there will be other forms of those types of currencies later on.

Advantages Of Cryptocurrency

The main advantage we can mention here is the ease of money transfer without the need to a third party like banks, credit and debit cards, or even the platforms that deal with online payments. All financial transactions will be executed through one process with the least amount of fees. The system consists of a public key, which is the account address and a private key that is used by the client to sign transactions.

Cryptocurrency- Everything To Know About
Cryptocurrency- Everything To Know About

The Drawbacks Of The Cryptocurrency System

So far, cryptocurrencies are a fantastic evolution in the online world, but unfortunately, there are also some drawbacks we can’t ignore. It can be used for illegal purposes as in the system; we mentioned anyone could be almost anonymous to the world. As for the business aspect, the cryptocurrency market is not stable all the time and highly dependent on the supply and demand concept. You can either lose or win money easily by investing in bitcoin, and that’s the scary thing you can never predict the ups and downs of the cryptocurrency market. Theoretically, it is similar to buying individual stocks but much riskier.

How To Buy Cryptocurrencies?

First of all, you must have a “wallet,” which is an online app to keep your coins in it and then create an account to be able to buy cryptocurrencies. The most popular places to do so are Coinbase and Robinhood, as they provide multiple services concerning cryptocurrency, creating a wallet, purchase, or sell. Another thing to keep in mind is that you don’t have to obtain a whole bitcoin by yourself. You can buy a fraction of it; in other words, you can share one bitcoin with other buyers.

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