Cryptocurrency is referred to as cryptocurrency because it is secured by cryptography which makes counterfeiting or double-spending impossible. Surprisingly, it’s history dates back to the 1980s. there are several types of cryptocurrencies including:
- Bitcoin, which is very popular.
How Can One Get Cryptocurrency?
Most beginners have benefited from the crypto genius website, which teaches the basics of cryptocurrency and investing in a way that is clear and understandable. Typically, there are two ways of acquiring cryptocurrency, the first being mining and the second by purchasing. Mining simply refers to the process by which the network confirms transactions hence it plays a key role in the maintenance of the blockchain ledger. It is also the process by which new cryptocurrency enters into circulation. Cryptocurrency mining is done using software such as NiceHash, Salad, MinerGate and CgMiner.
In the purchasing of cryptocurrency, you can either purchase a whole unit or a fraction. Since cryptocurrency can be very expensive, many people opt to purchase fractions which can cost as little as $5. The value of crypto is tied to the appetite investors have for it. For this reason, its value keeps fluctuating making it an unstable investment. For example, on 17th December 2017, a single bitcoin cost $19783, on December 7th 2018 it cost $3300 and on the 3rd day of November 2020, it cost $13764. This is a disadvantage and may also be an advantage to those who buy a cryptocurrency when its value is low and sell it when its value rises.
Cryptocurrency uses blockchain technology which involves a ledger of transactions. Each account has a copy of the ledger which makes it very hard to hack since altering only one copy won’t affect the 99% of the other ledgers. This enhances security.
Where is Cryptocurrency Used?
Many people hold the perspective that cryptocurrency is mainly used by criminals since your details are not exposed. However, this is not the case as only less than 1% of the transactions of crypto are linked to illicit activities and of this small percentage, it is mainly scams and not terrorism activities. Crypto is accepted by several tech companies, fast food providers, payment platforms, entertainment companies and transport companies. Examples of each of these include:
- Burger king
- Cheap air
Cryptocurrency is also used in the dark web. When making purchases on the dark web using crypto, make sure you take precautions by using a desktop version wallet like Ledger Live or Electrum and taking privacy steps. With the growing popularity of cryptocurrency, it is expected that its value and use will also increase.
What are the advantages of using cryptocurrency?
- The transactions are private
- When the value of crypto rises, you gain interest
- Low transaction costs
- You need not worry about the exchange rates
With the above insight, you now understand the possibility of theft through hacking and losses when the value of crypto falls. Eventually, investing in cryptocurrency is definitely worth a shot.