Crypto 101: What you need to know about cryptocurrencies
Recently, more and more people are fascinated by cryptocurrencies and the benefits they bring. With the modern technology available, people are starting to use digital payments more than real money. And since cryptocurrencies can be used as payments for products and services, people are starting to get interested in them. Find out everything about this novel technology here!
What are cryptocurrencies?
Cryptocurrencies are digital money that you can use to buy products and services over the internet. What makes them different from fiat money is that they are not controlled by the government.
Cryptocurrencies work by using blockchain, a decentralised technology running across multiple computers. They hold all transaction records on cryptocurrencies while still ensuring their security from being hacked or accessed without authorization.
Because of the decentralisation, or transferring the control and decision making for cryptocurrencies from an individual or group to a distributed network, they are not controlled by the government. This means its value and distribution are reliant on the people who are mining and using cryptocurrencies.
Its decentralisation also contributes to the security of cryptocurrencies. This is because it is almost impossible to hack into the blockchain to transfer cryptocurrencies to different accounts.
Why are cryptocurrencies popular?
People believe that crypto is the future of currency that’s why many people are clamouring to buy them now. After all, the number of cryptocurrencies that can be mined diminishes too and as it does, the prices will skyrocket.
Meanwhile, others liked the idea that banks are not involved in cryptocurrencies as they tend to reduce the value of money due to inflation. There are also those who like the technology and the security of how cryptocurrencies are stored.
How do you buy cryptocurrencies?
Cryptocurrencies can be bought with fiat money. There are several online platforms where you can buy cryptocurrencies and there are those that can only be bought using other cryptocurrencies.
Additionally, you will also need to have a wallet to store your cryptocurrencies. You will need to have one first before you even try to obtain some. You can get a software wallet, usually an app or a program for your phone or computer to manage your currencies. You can also get a physical wallet, a piece of hardware dedicated only to store the data needed to access your cryptocurrency.
There are also several cryptocurrency trading exchanges online where you can create a wallet there and trade your cryptocurrencies. This is also a great place to buy other kinds of cryptocurrencies if you need some.
Some people are still wary of cryptocurrencies but as they continue to grow, more people are thinking about investing in them. Don’t get left behind and find out all there is to know about crypto investments and trading to start on the right foot.