Site icon Siasi Critics

What is Cryptocurrency?

cryptocurrency, crypto, blockchain, bitcoin
  1. Introduction to Cryptocurrency

Cryptocurrency or Crypto is a digital currency that people exchange online to purchase any service or goods. Moreover, most companies contain their currencies and named them virtual tokens. Similarly, one can utilize the currency for trading purposes, whereas most companies use it to earn profit from it. The most common among cryptocurrencies is Bitcoin because it fluctuating in price all the time. It works through blockchain technology that records and manages the transaction details into the computer system. Also, the blockchain provides security to the whole process and makes it more stable and well organized.

Advantages and Disadvantages of Cryptocurrency

Advantages

  1. Generally, when it comes to transferring funds, the bank and other similar organizations always demand the inclusion of a third party for the safe side. Whereas, for cryptocurrency, you can transfer funds with another party without a hurdle, no need to involve any third party. Similarly, the transfers are safe and secure by use of private keys, public keys, and numerous incentive systems i.e Proof of Stake, Proof of work, etc.
  2. The transaction cost is pretty low with cryptocurrency. As any user can withdraw money from his digital wallet to a bank account anytime without issues and without paying heavy fees. In addition, one can do unlimited withdrawals and purchases with cryptocurrency and does not require documentation and paperwork to use it. Therefore, it is making life easier and simple.
  3. The international cryptocurrency is way more smooth and fast than a wire transfer provides. Similarly, the wire transfer takes 12 hours maximum to send the actual amount of money to the other designated place. However, cryptocurrency takes a couple of minutes to do the same.
  4. It also protects from inflation as its value is fixed and the currency is always in demand.
  5. The security and privacy of cryptocurrency are managed by a Blockchain system, that is unbelievably secure and difficult to decode.

Disadvantages

  1. People misuse this currency, as they get involved in illegal activities like money laundering and evasion of tax. As there are no restrictions and monitoring of people who are transferring money. Most often these people use Dash, ZCash, and Monero Coins that are harder to track down.
  2. Generally, cryptocurrency is not so common among people. Only some know about bitcoins and using them for trading. Also, the government of countries doesn’t want their people to use this currency or the system should track the transaction details. Because it can be misused by various criminals and corrupt peoples.
  3. Another main issue with cryptocurrency is that you can lose your all wallet money if forget the password of your wallet. Similarly, it’s difficult to recover data because of the strict policies of Blockchain.

 

How Can I Buy Cryptocurrency

Firstly, you require to have a wallet (online app) that keeps your money. Anyone can buy the cryptocurrency in U.S dollars. Also, one can buy it through other types of cryptocurrencies including Bitcoins. To take the start, you have to create an account then you can be able to buy it through exchanging real money like U.S dollars or other cryptocurrencies. Numerous online brokers sell and provide cryptocurrencies to people for multi-purposes. Moreover, the most popular among all is Coinbase which is a trading exchange where one can sell and buy cryptocurrencies like Bitcoin easily. Hence, the currency can be simply purchased from numerous online crypto platforms, but one should know whether he is buying from an authentic broker or not.

How Can I Invest In Cryptocurrency

There are numerous networks and online crypto platforms from where one can invest in cryptocurrencies. It requires you to follow the simple steps so that one can successfully invest in cryptocurrency. Check out the following steps:

  1. You need to know that cryptocurrencies were not designed for investment. However, it was introduced to exchange money for trading purpose. But nowadays many people want to make money with it. Well, if you also want to invest, then initially allocate only 2% to 5% of your portfolio to cryptocurrency because volatility can change its value unbelievably. Its value is continuously changing day by day.
  2. After that, one needs to choose the cryptocurrency in which he wants to invest. There are thousands of cryptocurrencies, among all the Bitcoin is popular worldwide. After that, the most dominant is Ethereum, and then there are others including Zcash, Ripple, and Dash.
  3. The next step is to choose a platform where you can buy cryptocurrencies. There are numerous online cryptocurrency exchange platforms where one can easily purchase any type of cryptocurrency without any problem. They are:

The cryptocurrency wallet

  1. Then, here you bought the cryptocurrencies, now it’s time to store them in the wallet. The cryptocurrency wallet is an application that keeps public and private keys that make a connection with the Blockchain (the place where your cryptocurrencies are available). Wallets allow you to access your crypto which is lying in the blockchain. However, you need to keep the private and public keys with you all the time to get access to cryptocurrencies. The public key is the address, whereas the private key is the password which only you should know and is secret.
  2. Finally, you need to secure your cryptocurrency to keep your investment safe. It can be possible by using a VPN like NordVPN so that one can safely transact money online without getting into any tragedy.

Hence, cryptocurrencies are unpredictable, it can go up one second, however, can reduce the value the other second. It is mandatory to keep updated about the current crypto value and situation so that you can get aware all the time.

Exit mobile version