The definition of cryptocurrency
It is a form of currency available in digital format that you can use for online purchases. You can buy it using your real money, whether you have dollars euros or GBP.
The process of buying cryptocurrency is the same as when you travel to another country where you first exchange your currency into their local currency.
So, if you live in the United States, you can buy anything in USD. But if you go to Italy, then to buy anything you need euros.
In the same way, you can also buy cryptocurrency with your real money on an exchange. The question remains, why do they have this name? The term crypto comes from the word cryptography which is an art of solving or writing codes. Each digital piece is a unique line of code. One of its advantages lies in the impossibility of copying the encrypted coins, which makes them easy to follow.
How it works ?
A person can send cryptocurrency to another without any intermediary like a government or a bank. In other words, no one controls the crypto. It acts a bit like when you hired a child to mow your lawn or take care of your dog when you’re not home and you pay them cash. In this case, you do not need to go to a bank to complete the transaction.
The same goes for cryptocurrencies, where you don’t need any middlemen. Additionally, every cryptocurrency is decentralized, which means that no one controls the value and how they are made. If you want to get the latest cryptocurrency news and opinions, you can visit coin24.fr .
How can you store it?
This is the question most people ask. In the traditional way, you can keep your money in the bank, in a safe or just in your wallet. But what if you want to store digital currency that you can’t physically touch? The answer is simple: you keep them in a digital wallet.
Various companies provide crypto wallets. Each of them has a unique private key which is used during a transaction.
We mentioned above that cryptocurrencies are made using blockchain technology. It is a recipe for transactions that continues to grow. It is a public record of all transactions that have taken place.
What can you buy with Crypto?
At the moment, cryptocurrency looks more like an investment to most people than an actual way to acquire property. However, it becomes a means of purchasing goods and services. It is increasingly accepted as a means of payment, which should increase as cryptocurrencies gain in confidence.
Various retailers like PayPal, Nordstrom, Expedia, Whole Foods, and Etsy allow people to pay using crypto. Moreover, if two people agree, they can exchange services or goods using digital coins.
Is it a good investment?
Before investing money in cryptocurrencies, you should know that they are very volatile. Prices can go up or down in an instant. It is impossible to predict what will happen with the price. It’s also true that some currencies are hot right now – but for how long, we can’t predict. A recent study shows that 50% of people in the United States think investing in crypto is safe. However, every investment involves some risk.
Moreover, there is a lot to learn about blockchain technology. Thus, Bitcoin’s founder is still unknown, and very few people truly understand how the system works. When you ask people, some will say they lost everything, and some will say they made huge profits. Either way, investing in crypto is similar to trading stocks.