Table of Contents
What Is Cryptocurrency?
Cryptocurrency is a variety of digital currency that usually only exists electronically. There are no coins or physical bills unless you use a service that allows you to charge crypto for physical tokens. You usually trade Cryptocurrencies with someone online, with your cellphone or computer, without using intermediaries such as banks. Bitcoin and Ether is also Cryptocurrencies, but there are many different and new cryptocurrency brands create constantly.
How Do People Use Cryptocurrency?
People use cryptocurrency for fast payments, to avoid the transaction fees charged by ordinary banks, or because it offers some anonymity. Others hold Cryptocurrencies as an investment, waiting for its value to rise.
How Is Cryptocurrency Acquired?
You can buy cryptocurrency through online exchange platforms. Some people acquire Cryptocurrencies through a complex process called “mining”, which requires sophisticated computer equipment to solve very complex mathematical puzzles.
Where And How Is Cryptocurrency Stored?
Cryptocurrency stored in a digital wallet, which can be online, on your computer, or an external hard drive. But if something unexpected happens: your online exchange platform stops working, you send Cryptocurrencies to the wrong person, you lose your digital wallet password or your digital wallet stolen or compromised, chances are that you won’t find anyone who can intervene. to help you. to get your funds back. And, since you usually transfer Cryptocurrencies directly without an intermediary such as a bank, there is often no one you can contact if you run into problems.
How is Cryptocurrency Different From The US dollar?
There are important differences between cryptocurrencies and traditional currencies.
Cryptocurrencies accounts not supported by the government. Cryptocurrencies accounts not government-insured like US dollars held in bank accounts. If you store Cryptocurrencies with a moderator company and that company closes or gets hack, the government is under no obligation to step in and help you get your money back.
Cryptocurrencies values are constantly changing. Cryptocurrencies values can change rapidly, even changing every hour. It depends on numerous factors, including supply and demand. An investment worth thousands of dollars today can only be worth hundreds of tomorrow. And also, if the value goes down, there is no guarantee that it will go up again.