Have you thought about getting into the crypto hype, but you are not entirely sure what it actually means or how to get hold of your own Bitcoin. Time to read what a prominent Crypto exchange has to say about this.
Just, during 2017, the Internet was abuzz regarding cryptocurrency once they realized how much Bitcoin’s value increased.
Even though its value dropped again, it got the attention of a wider audience than before.
Unfortunately, not many of the people attracted to crypto coins like these are financial experts, and they have a lot of questions on how to get their own piece of the pie and to learn more about Bitcoin.
Even though there is plenty of info on the matter, it is very specialized. You may be trying to figure out what digital currency is in the first place. In that case, we are about to tell you more.
1 – Digital Money
As you start getting to the core of it all, you’ll realize that cryptocurrency is a different kind of money. The same way you would dispose of regular money, you would spend cryptocurrency, although in a more limited fashion. More on that in a moment.
You will very likely come across cryptocurrency terms like Ethereum, Bitcoin, Litecoin, Ethos, and so forth. What is it supposed to mean? Many of these may sound very futuristic. But, in reality, they are just different versions of currency currencies such as the Euro, pound, or dollar.
Unlike the money we use daily, digital currencies referred to as “altcoins,” only exists within the digital world. Therefore, they term it as “digital money.”
So, regardless of what some images might show you about Bitcoin, there are no physical coins involved.
2 – Cryptocurrency is Used to Invest, Buy, Sell, and Trade
It is not all that hard to figure out what to do with digital currencies. You can practically do anything you would typically do with other money.
Many people seem to think that Ethereum, Bitcoin and other cryptocurrencies can only be used to trade and invest with. In other words, a commodity one can use to turn some monies into a whole lot of money magically. However, folks are using these for purchases too such as buying or selling an item online or even paying for their coffee.
The latter is not that common as many companies do not accept digital currencies as payment yet. As more people begin to switch to Ethereum or Bitcoin, others will soon follow suit.
3 – Borderless Currencies
Money as we know it is tied to specific locales, and one can just use your local currency to purchase things in your own country. For example, have you tried paying for coffee in Brazil using Euros? You will encounter a very dissatisfied barista if you try.
However, you would have no problems when doing this using Bitcoin as it’s digital money, which is tied to the digital world with no actual borders or limitations. You can use it to buy various items online from anywhere in the world, as long as the entity you are dealing with accepts it. There are no worries about an exchange rate.
4 – Banks Have No Say Over Cryptocurrencies
It has become the norm for all of us to let our money go through a bank. But, in the case of either Ethereum or Bitcoin, they have no say. Exchange rates are disappearing. But, that is not all.
Another huge benefit to digital currencies is the fact that institutions cannot control or manage the money supply. What is more, they do not have the power to use inflation to minimize its value over a specified period.
However, on the flipside, any transactions are made anonymously as a cryptocurrency account or any transactions attached to it are not actually linked to real-world entities. Even though a given account needs to be connected to an address, it cannot be traced in any way.
This fact makes it so much easier for hackers to cover their tracks and hard for the authorities and banks to locate the perpetrators. But, as technology develops this can change and might already be here in the form of Blockchain.
5 – How Blockchain Record Transactions Digitally
Blockchain is known to be a public ledger that stores and record every transaction that ever took place. Due to this, everyone will see what others have done.
Furthermore, it is regarded as a decentralized entity, meaning it cannot be pinpointed in any given location. Instead, it is present on all PCs that make use of Blockchain. The moment a transaction takes place, the ledger would update it everywhere else. Once the money has been sent, it cannot be canceled.
Because of this, any cryptocurrency that makes use of blockchain becomes a very secure and efficient payment method. There is no middle-man involved to initiate the transfer. What is being used is a peer-to-peer system.
As every transaction is listed, no one can bulldoze you concerning how much crypto coin they have. They cannot perform a double transaction either.
More and more it starts to make sense that we can safely transact any digital currencies through a trusted exchange.