System administrator / DevOps / Ethical Penetration tester
What is Cryptocurrency?
In my point of view, cryptocurrency will be an alternative payment solution in the world and as a modern person who likes to explore the world and what it offers, I don’t sit in one spot but I’m moving forward by exploring new and modern IT solutions. By doing the exploring for most interesting things I will try to create posts.
Some people want to use cryptocurrencies, but they don’t know where to create a wallet and where to purchase them, if you do a search on Google, then you will find a lot of resources, but how safe are they? That is the question. There fore before I explain what is cryptocurrency we are recommending ( This is not paid recommendation but as I know their services and that people will not be ripped off I recommend ) 2 crypto wallet and cryptocurrency exchange service providers.
- Binance – If you use our invitation code R6K03A66 you will get +20% on each bitcoin purchase. Or click here
- Coinbase – If you register using this link and purchase Bitcoin spending 82 Eur, then you will get an additional 8.70 Eur
Cryptocurrencies let you buy goods and services, or trade them for profit – The most popular crypto exchange to profit is Binance.
A cryptocurrency (or as it is pronounced “crypto”) is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.
The most popular cryptocurrency is Bitcoin, which has had volatile price moves in the year 2020/2021, reaching nearly $65,000 in April before losing nearly half its value in May.
1. What is cryptocurrency?
A cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.
Cryptocurrencies work using a technology called a blockchain. Blockchain is a decentralized technology spread across many computers that manage and record transactions. Part of the appeal of this technology is its security.
2. How many cryptocurrencies are there? What are they worth?
More than 10,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on May 27, 2021, was more than $1.7 trillion — down from the April high of $2.2 trillion, according to CoinMarketCap. The total value of all bitcoins, the most popular digital currency, was pegged at about $735 billion — down from April’s high of $1.2 trillion.
3. Why are cryptocurrencies so popular?
Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:
- Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable
- Some supporters like the fact that cryptocurrency removes central banks from managing the money supply since over time these banks tend to reduce the value of money via inflation
- Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems
- Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money
4. How do I buy cryptocurrency?
While some cryptocurrencies, including Bitcoin, are available for purchase with any currency, others require that you pay with bitcoins or another cryptocurrency.
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum. Here’s my recommended Crypto wallet
5. Are cryptocurrencies legal?
There’s no question that they’re legal in the United States, though China has essentially banned their use, and ultimately whether they’re legal depends on each individual country. Also, be sure to consider how to protect yourself from fraudsters who see cryptocurrencies as an opportunity to bilk investors. As always, buyer beware.
El Salvador already made 1 step by becoming 1 country in the world, that has added Bitcoin as a second currency in their country. You can read more here. But that isn’t all as India is also planning to do the same step as El Salvador so with all these moves, the CryptoCurrency value is growing as it will become eventually a legal payment in all or at least larges part of the world.
For example, if you use Binance by validating your account you can also add Digital Card to your iPhone wallet and make payments in any shop, that accepts Visa and Master cards, the Binance will convert Bitcoin into the currency that you are making payment, but if you want Binance can also send you a real credit card, that can be used for payments and transactions so why not register today, as you can register under with our code R6K03A66 or by clicking here and get a bonus of 20%.
6. How do I protect myself?
If you’re looking to buy a cryptocurrency in an ICO, read the fine print in the company’s prospectus for this information:
- Who owns the company? An identifiable and well-known owner is a positive sign.
- Are there other major investors who are investing in it? It’s a good sign if other well-known investors want a piece of the currency.
- Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings (you’re an owner), while buying tokens simply means you’re entitled to use them, like chips in a casino.
- Is the currency already developed, or is the company looking to raise money to develop it? The further along with the product, the less risky it is.
It can take a lot of work to comb through a prospectus; the more detail it has, the better your chances it’s legitimate. But even legitimacy doesn’t mean the currency will succeed. That’s an entirely separate question, and that requires a lot of market savvy.
But beyond those concerns, just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. One high-profile exchange declared bankruptcy in 2014 after hackers stole hundreds of millions of dollars in bitcoins. Those aren’t typical risks for investing in stocks and funds on major U.S. exchanges.