Cryptocurrency has become so popular that a day will not pass without it being mentioned in the news and financial publications. It is becoming more popular by the day and this might make you wonder why it is being given so much attention. Many people know cryptocurrency as a form of currency used to make transactions globally and locally. However, this general knowledge does not explain what cryptocurrency is and how it works.
To have more knowledge on this virtual currency, we’ve put together this piece to give you all you should know about cryptocurrency and why you should care about investing or making use of it.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency run on decentralized blockchain technology. It can also be referred to as a digital asset that allows people to trade safely and securely using computer networking software. It does not run on central financial intermediaries but smart contracts via blockchain technology. Cryptocurrency has proven its security over the years, and no one can fake it. This currency is not produced by the government or any other monetary institution; hence they do not have the power to tamper with, control, and influence cryptocurrency.
Organizations and individuals can make online transactions with cryptocurrency without the intervention of third parties, just you and the person with whom you are doing business. Cryptocurrency also allows transactions by users from many parts of the world. Payment for all sorts of transactions, including food items, groceries, clothes and shoes, can be done with cryptocurrency. You can also play at esports betting sites with this digital money.
With cryptocurrency, you don’t have to bother taking cash around or using banks to perform your transactions. All you need is a cryptocurrency wallet where you store your coin, verify every transaction, and keep track of your coins. While using crypto for transactions, your partner must also use cryptocurrency and paste the currency on their wallet address.
A wallet address is a long string of a combination of letters and numbers which looks like a hash code. This wallet address should only be known by you for security reasons.
We know that the following question on your mind is “How can you get a hold of this currency?”. The answer to this is quite simple. You can either mine or purchase cryptocurrency with cash through a reputable broker. Cryptocurrency comes in different shades, and they all differ in value. We have Ethereum, Bitcoin, Litecoin, zCash, Dogecoin, Dash, Ripple, Solana, Stablecoins, etc.
Why is Cryptocurrency Important?
One of the importance of cryptocurrency is that it has gained more popularity and value over time. For instance, the popularity of cryptocurrency and its increase in value has made people complain about why they didn’t purchase many coins in the past seven years. This complaint happened because cryptocurrency has added so much value that purchasing it in the past means you will be swimming in millions if you want to sell it. Some people even refer to cryptocurrency as the currency of the future.
Although the cryptocurrency price can drop (this is known as mooning, and it’s the best time for those who want to invest in buying), it cannot affect the economy, but it bounces back with time. Cryptocurrency abolishes intermediaries as well as third-party interference, unlike fiat currency. Making transactions through cryptocurrency does not demand that a third party like your bank manager or financial institution attend to you. It is just you and the person you are transacting with, with no prying eyes.
Security is highly guaranteed when using cryptocurrency. As mentioned earlier, there is no prying eye-checking through your transactions, so you can rest assured that you are in safe hands. Unlike how fraudsters can hack your bank details, this doesn’t happen with cryptocurrency.
Cryptocurrency is also fast and easy to use. Transactions made via cryptocurrency can travel across borders within a twinkle of an eye, and it doesn’t take forever to use. Cryptocurrency can also be used to play several virtual reality games online.
Why Should I Care?
Although cryptocurrency has many advantages, the way its value is fluctuating in the market poses the question: Should I care about crypto?
So before going into it, you need to answer the following questions. Do I have enough money that can sustain me after buying? Can I take the risk? How much do I understand the crypto market? If so, then you should care about cryptocurrency.
The cryptocurrency journey is close to a decade now, and it has been doing well. Cryptocurrency is different from fiat or asset; it is a digital currency that has changed how people view money. It can also shake up the global financial system with its growth. If you want to invest in crypto, do so with caution and buy from a reliable broker.