WHAT YOU NEED TO KNOW ABOUT CRYPTO CURRENCY
WHAT YOU NEED TO KNOW ABOUT CRYPTOCURRENCY
What You Need To Know About Cryptocurrency
Initially viewed as a rebellious technology that would upend global financial institutions and free people from fees attached to the banking system, cryptocurrency has since been tarnished by criminal activity and wild market speculations. While most people that still care only hear about Bitcoin, only a few understands the strategy and fundamentals of how cryptocurrency works especially when their personal finance is involved. A lot of individuals are willing to do cryptocurrency trading but owing to the fact that they lack the knowledge of how the digital transactions are being carried out, they choose to play safe and refrain from joining the online community.
Cryptocurrency entails a digital platform of holding and transferring value online. With the use of your credit card or traditional money, you can purchase cryptocurrency tokens online. Also, it is vital to stress that there is typically nobody, bank, or financial institution put in charge or control of any particular cryptocurrency. However, there are dozens and numerous cryptocurrencies that are available online, but the biggest and most well-known ones are Bitcoin and Ethereum. The value attached to any cryptocurrency at any given period largely depends on the level of supply and demand. Normally, there is always a fixed amount of any currency in any given period of time. The more people demand for it, the higher the price. For instance, in late 2017, the price of a single point rose to roughly $20,000 and then took a drive to around $4,000. With this, it is clear that once the demand for bitcoin drops, the price equally drops. For the currency market to continue flourishing greatly, the demand needs to keep rising otherwise it keeps declining. It is also needful to note that a lot of changes and transformations are bound to occur in cryptocurrency, a new cryptocurrency leads to the disappearance or termination of another.
How To Get Cryptocurrency
For individuals interested in purchasing cryptocurrency, the process is relatively easy, but considerably a little more difficult to unload them. There are numerous websites where you can purchase cryptocurrencies. Sites like CoinBase are exchanges that presents a platform for you to purchase a variety of digital coins. There are also apps known as digital wallets which enables one to keep cryptocurrencies to him or herself and also transfer funds to others with great ease. With the use of such wallet, the private keys which represent ownership are saved directly on your technological device.
How To Spend Cryptocurrency
With the possession of your wallet under your personal lock and key, you can easily ‘’send’’ people digital funds. In order to do this, a lot of people prefer to use online vaults for transactions, like ones provided by CoinBase. The process of sending cryptocurrency is very similar to traditional online services. All you need to do is simply enter the amount of money you intend to send and the company that you want to pay.
However, some vendors permit cryptocurrencies. For instance, Microsoft will allow you add Bitcoin to your account online with the use of your digital wallet. People do not also know that there is a great list of things one can purchase with the use of cryptocurrency such as things ranging from fine art to real estate. In most cases, the choice of cryptocurrency for payments has been more of a marketing move than a practical financial move, but it can ensure that cryptocurrency tokens gain strong stability.
Additionally, you have to be aware of the fact that most of the mediums that accept cryptocurrency also place strict restriction and limitations on them. In the first instance, most of them only accept the most popular and leading cryptocurrencies such as Bitcoin and Ethereum. Secondly, you might not be able to use your cryptocurrency credit for every service due to restrictions placed by these mediums. For instance, Microsoft will only permit you to use bitcoin when you want to buy games, movies, and apps in Windows and Xbox stores but will not allow you use cryptocurrency in the Microsoft online store or to buy gift cards with it. These limitations serve as great hindrance to people that want to fully enjoy the services attached to the use of cryptocurrency.
There are fees attached to cryptocurrencies. Most of the independent and emerging exchanges willing to buy and sell cryptocurrencies to people also charge some kind of fees for the services rendered. Just like real stock brokers, they have you coming and going each time you buy or sell a cryptocurrency. The fees attached are usually a percentage of the total deposit or payment. Meanwhile, whether you have to pay 1.5 percent of the total, it is much more lesser when compared to other conventional services. For instance, Paypal typically charges a payment percentage closer to 3 percent.
This largely depends on your perspective. However, it is extremely important to note that cryptocurrencies that make use of blockchain technology ensure that trading transactions are properly recorded which makes it very difficult for hackers to hack. Blockchain software is simply a decentralised ledger without the control of any individual, government, or financial institutions owing to the fact that transactions are maintained across multiple nodes, creating redundancy and making it extremely hard for any single user to tamper with. You should note that if in any case a cryptocurrency token is stolen from a digital wallet, the money is lost and will not be traceable in numerous cases.
Who Is Cryptocurrency Meant For?
At the start, cryptocurrency was the realm of criminals and digital speculators who in most cases were attracted to the use of crypto due to the ease attached to the use of Bitcoin which can be traded online with anonymity uncompromised. It is no surprise that individuals notable for trafficking in stolen data and drugs on the dark web were big time proponents of cryptocurrency in the start. However, crypto has gained legitimacy in the course of the past few years because of its flexibility in transferring digital money on the internet without need for any form of institutional banking.
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